INGATE

From The Sip Trunking Experts

TMCNet:  'Indian IT needs to take a look at what they do' [Strategy] [Times of India]

[December 22, 2012]

'Indian IT needs to take a look at what they do' [Strategy] [Times of India]

(Times of India Via Acquire Media NewsEdge) Management consultant David J Anderson, who specialises in efficient software development methodologies, thinks that India's $70 billion IT services exporter industry may need to take a hard look at what they do and how they do it, before it is too late.


In an interview Anderson tells Indu Nandakumar that Indian IT services companies such as Infosys, Wipro and Tata Consultancy Services are very close to losing the labour arbitrage advantage - an area where competing countries such as China, Argentina, Peru and Chile will soon have an upper hand. The sector needs to be more efficient and its ever swelling workforce more productive to retain the edge as world's preferred outsourcing destination. Excerpts: Do you think that technology outsourcing is at crossroads Offshoring is at a complicated stage, because countries like China, Philippines, and Latin America are emerging. Therefore , Bangalore companies can't compete on price anymore . They must look at smarter ways of being competitive and how to keep the growth going. They also need to understand that labour arbitrage won't take them any farther. Some of the people I met here (Bangalore) told me that all their management cares about is utilisation and how much they get paid for an hour.

You said that Indian IT exporters are losing the advantage of labour arbitrage. How do you expect it to happen There are some things I am seeing from the West on outsourcing . I actually see people going to South Africa or Argentina for cheap work. Argentina is way cheaper than India . So are Chile and Peru. South Africa too offers services at competitive price. I also see a lot of situations where companies are repatriating work to onshore. A company in New York sends work to West Virginia rather than sending it to India partly because of proximity. But mainly because of lead time. If they send work to India, it takes months to finish . But the guys in West Virginia can do it much faster. The repatriation of work is a trickle right now and it could become a problem. If Bangalore companies can cut down on lead time, then they can respond as quickly as someone from West Virginia would do. At the end of the day, the customer really is worried about the price, labour rates. Businesses that really value are beginning to repatriate work to local offices.

You have been promoting the Japanese lean-manufacturing principles of Kanban among IT companies. Why should Indian IT firms adopt your system For the last 20 or 30 years these firms have used the same business model. But now things are changing because India is losing its labour arbitrage advantage. If you want to reach the next level of growth, the old model won't be enough. Senior executives need to approach new business models and execute this. The short term advantages of Kanban are more predictability, more productivity, reduced delays and in the longer term it improves profitability. For instance, when a project is outsourced, the client wants to know how long it will take. The IT firm has to estimate all the risks and make a promise. Kanban methodology of organising developing software can help these companies in improving predictability and working faster. This helps them drive the costs down and demand better pricing by doing the same amount of work.

What concerns did you hear from Indian IT heads The middle managers were mostly worried about utilisation rates. They are also fairly conservative when it comes to taking big decisions. But after two weeks in India, I'm way more positive than I was earlier. The Indian IT market has made its money from being slow and steady and low cost. Therefore I do expect the uptake of Kanban to be slow here. The early adopters of Kanban are Nordic companies . But I am confident that three years from now, we will see have hundreds of Bangalore companies making valuable use of Kanban.

(c) 2012 Bennett, Coleman & Company Limited

[ Back To SIP Trunking Home's Homepage ]

Loading
Subscribe here for your FREE
SIP TRUNKING enewslettter.

Featured Partner


Featured Whitepapers

SIP Security for the Enterprise
Voice over IP (VoIP) is incorporated into a variety of computer networks, both public and private, and used for everyday transactions and communications among carriers, businesses, government agencies...

Making A Broadband Purchase Decision
Businesses today have many options for broadband connectivity. Clarifying your particular business needs prior to selecting a broadband provider will ensure an optimal match of broadband service to your requirements.

Voice-Optimized Network Delivers Premier Call Experience
Customers equate call quality with business quality. Real-time communication, interpersonal interaction, and the cordial tone of a call center representative can create a positive impression of your business that no email can match.

Featured Case Studies

Business Telecom Expenses Reduced 50%
A small to medium sized company in the midwest was interested in migrating to IP Communications, but in today's economy, they were hesitant to upgrade their communication system due to their perception that the cost would outweigh the benefits.

Multi-State Company Cuts Telecom Costs 50%
A multi-site, multi-state company with extensive monthly long distance fees and toll-free charges did not have adequate broadband for Broadvox SIP Trunking requirements, nor did they have a SIP enabled telephone system.

Discover Leisure Connects Remote Users to its IP-PBX
Discover Leisure is one of the largest resellers of caravans and motor homes in the UK. With 15 branch of?ces all over the country, the company spent a great deal of money every month just on internal phone calls.

Featured eBOOKS

Internet+: The Way Toward Global Unified Communication
Connecting the telephony of the enterprise PBX or Unified Communications (UC) system using SIP trunks instead of conventional telephone lines has been very successful in recent years.

What is SIP Trunking? Edition 2
SIP trunking is becoming more of a focus for service providers. One key issue many service providers face when deploying SIP trunks is NAT, or Network Address Translation, traversal.

What is SIP Trunking? Edition 1
A vast resource for information about all things SIP - including SIP, security, VoIP, SIP trunking and Unified Communications.

Featured Videos

Broadvox VAR Testimonial VAR 1:
Part 1 of the VAR (Value Added Reseller) Partner Program Testimonials for Broadvox...

E-SBCs AS The Demarcation Point:
Ingate's Steve Johnson talks to Erik Linask about the role session border controller plays as the demarcation point at...

Demystifying DPI
How can deep packet inspection protect your SIP traffic as well as your entire network?

Featured Resources

Partner Program Overview:
Over 4,000 VARs, Master Agents, Solution Providers, and Independent IT Professionals trust Broadvox. We offer customized services and solutions to fit seamlessly into any company's business model. And when you partner with Broadvox, every member of our team stands behind you and your customers 100%...

SIP Trunk UC Summit

What's New

Presenting the New Ingate/Intertex Website:
Internet+ is an extended Internet access allowing high quality SIP (Session Initiation Protocol) based real-time person-to-person communication, everywhere and for any application. It applies to both fixed and mobile networks ...

Featured Blogs

Featured Webinars

Secure SIP Trunking:
What You Need to Know

Successfully Deploying Enterprise SIP Trunking:
Tools and Techniques for Overcoming Common Roadblocks

Featured Podcasts

Getting the Most Out of Your SIP Trunks:
Ingate's Steve Johnson and TMC's Erik Linask discuss how best practices forgetting the most out of SIP Trunking services and common pitfalls to avoid.

Featured Datasheets

Ingate SIParator E-SBCs
Adopting SIP is a simple process with the Ingate SIParator, the secure enterprise session border controller (E-SBC). The SIParator makes secure SIP communications - including VoIP,SIP trunking and more - possible while working seamlessly with your existing network firewall.

Ingate Firewalls
Everyone is talking about enterprise usage of VoIP, instant messaging and other types of realtime communications including presence and conferencing.

SIP Trunk Solutions for Service Providers
The award-winning Ingate Firewall and Ingate SIParator deliver a high quality, reliable SIP trunk connection between the customer's IP-PBX and the service provider network, and solve interoperability issues to simplify deployments and support for remote diagnosis of reported issues.