Tuesday, April 11, 2006

IT Industry and India's Role

We all know that the IT industry in India is making news all over and analyst all over the world are quiet bullish about the growth of Indian IT trade.
IBM has a global strategy for SOA hinges on India as it bets big not only on the enormous talent pool in the country, but also on India’s image as a channel to the global market. The Armonk-based IT giant is moving development of software-based on SOA to its Bangalore centre. “India is extremely critical in both development and deployment of capabilities around SOA. I don’t see ourselves don’t see ourselves succeeding without leveraging India,” Ambuj Goyal, senior worldwide executive, information management software.

If we want to succeed worldwide, we need to be able to leverage the reach that India has. We may find great talent elsewhere, but India has another edge. It is a channel to the global market,” Mr Goyal said.
One of the poster boys of the India IT industry Azim Premji is interview in the latest edition of Knowledge at Wharton .

On being asked that today, Microsoft's revenues are more than 20 times Wipro's revenues. Here’s what he had to say

It would be reasonable to assume that Indian services exports in IT and in BPO will grow cumulatively for the next five years at about 35%. They are now growing between 23% and 25% a year. I do not see any reason why leading companies like ours cannot grow faster than the growth of exports from India.

After that, it is a matter of interpolation and desire. Do you keep scaling the organization? Do you use high-leverage models? Do you use productivity tools so that your headcount doesn't increase as fast as your revenues do? That is what we are trying to achieve, and it is not an easy challenge. How do you build maybe 8% productivity growth a year in your business model? To do that, you have to grow 8% a year in terms of revenues with the same headcount, or to grow 16% in revenues a year but with just an 8% increase in headcount.

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