Enough this outsourcing money making . The age is ripe and probably calling to be rotten to think beyond maintenance,billing,24X7 ,etc. IBM had a tough time to switch themselves out of hardware business in the early 90's.Don't let that happen to Infosys. The future of Infy,TCS,Wipro and other biggies is dim for the simple fact that services can be done in small sizes.So get innovative and invest in R&D to make products that can compete with the likes of Intel,Microsoft,Apple. otherwise you are going to bit the dust soon.
RE:High time Infy start being innovative !
by Sameer Bhagwat on Jul 12, 2008 08:43 PM Permalink
Fools on this board don't relaize that the moment Infy or TCS start producing products nobody will Outsource as you will start com,peting with the rest of the world in that space. If they start doing it there will be a severe downturn, are we ready ofr a downturn?Outsourcing will come to a complete halt.Its not that they can't make products, its just that the market dynamics don't allow it.
RE:High time Infy start being innovative !
by Sameer Bhagwat on Jul 12, 2008 08:46 PM Permalink
Also Indias strength and wekness prehaps is its population. The moment you start making products you need less volume and more capable workforce. India has volume and like it or not, thousands will be out of a job. So think of the market dynamics and then talk. YOu thin nfy and TCS don't have brains to make products?
RE:High time Infy start being innovative !
by Farokh on Jul 12, 2008 09:45 PM Permalink
Dear Sameer, I have serious doubt about your understanding of global IT market. Service sector is and will always be under cost pressure. If indian biggies really want to make significant progress, they have to concentrate on the products. There is no reason to beleive that outsourcing will come to halt if these companies enter into products. These companies can have seperate service and product divisions. Take example of SAP. SAP AG is a product company while SAP America or SAP india are service companies. Its the business model that these copanies have to develop.
RE:High time Infy start being innovative !
by IntelligentEnterpris Interface on Jul 13, 2008 05:11 PM Permalink
I agree with you Farokh. This guy Sameer has 'nil' understanding about the dynamics of IT business and on top of it he is behaving as a know all of everything. Mr. Sameer, who gave u this impression that Product and Service business is mutually exclusive? A company of stature of Infy, TCS can set up a product division and manage it as a seperate business/division. Its basically moving high up the value chain and also hedging a lot of your revenues against risk (pricing, currency fluctuations,costs,competition from south east asian countries etc.).
RE:High time Infy start being innovative !
by ebguy on Jul 12, 2008 10:52 PM Permalink
IT outsourcing in long term is not viable. This is a total hype & they are looking around to find cheap labor. Cost reduction and nothing else. Its a modern day slavery. Bring cheap labor describing it as a global trade. If people remember what was Phillipines, Indonesia in 80's (They were cheap manufactring hubs). Its not going to work in long term.
Fools on this board don't relaize that the moment Infy or TCS start producing products nobody will Outsource as you will start com,peting with the rest of the world in that space. If they start doing it there will be a severe downturn, are we ready ofr a downturn?Outsourcing will come to a complete halt.Its not that they can't make products, its just that the market dynamics don't allow it.
The business model of Infy/TCS and other great companies is similar to indentured labour of imperialist. Bring people from poor countries and let them work for rich. It's high time Infy/TCS and IITs come out with some innovative products. In any case the IT in India is already 100% controlled by MICROSOFT/ORACLE/IBM type MNCs with the help of Indian brains and hands.
RE:Develop Product and not sell skills
by Sameer Bhagwat on Jul 12, 2008 08:28 PM Permalink
Not possible, the moment they start producing products, traditional outsourcing will stop.Please understand dynamics
what you have said is true and almost all the companies do that. Hope they start looking at developing a true world class product with made in India stamp.
You can only be optimistic - Infosys Bosses. you have minted huge money by limiting brilliant brain of India.
Can you answer one question - Wht India dont have its own Windows or Linux or any other software which can be called a PRODUCT? Why still we are living in the age of slavery - servicing western countries.
Learn something from China which has made a product base for itself. It is not surviving on Service Idnsutry.
And dont say that Indian brain is sharp or brilliant till we have our own products.
RE:You can only be Optimistic
by iweb on Jul 12, 2008 03:21 PM Permalink
You are 100% correct. Infact people like Infosys should incubate Product Companies. There is no funding available or R&D Money for Indian Software Start-Ups of companies and even if they get that and when they go to sell, they have to fight global software product giants which kills them. Proper incubation is required which only our corporate sector can do.
We need people like Dhirubhai who can bet their money on people and make them perform - not a conservative unit like Infosys who sits on crores of rupees just doing nothing!!!
RE:You can only be Optimistic
by Jagadeesan R on Jul 12, 2008 03:54 PM Permalink
All you people need to give some credit where it's due.I do not think Infy or TCS or anyone ever claimed that they are doing rocket-science.
Remember, it's only because of these guys that people graduating from college in India these days have a reasonable, if not great career option to take up. IT is the largest job creator in the Indian economy and has given strength and confidence everywhere. The givt's tax revenues are up heavily beacause of taxes paid on these 'high' salaries. No high salaries, no tax revenue - do you want to go back to the 80s ? And forex reserves from IT help you get the petrol and diesel that the economy needs.
Before trying to put people down, do spend a minute and think about the positives too. Where India was in 1995. I still rememmber 5 year waiting lists for landline phones. You have to crawl before you learn to walk. You dont get born and then start running right away. All the innovation that you expect will happen in the course of time.
If what these people have achieved is so easy, why didnt you people do it instead of cribbing ?
RE:You can only be Optimistic
by iweb on Jul 12, 2008 05:04 PM Permalink
AGREED BUT THIS BABY DOES NOT WANT TO LEARN TO RUN OR WALK, IT JUST WANTS TO CRAWL AS THATS THE SAFE WAY OUT!!!
SITTING ON CRORES OF RUPEES FROM SO MANY QUARTERS JUST DOING NOTHING. READ THEIR BALANCE SHEET AND SEE HOW MUCH THEY SPEND FOR R&D OR INNOVATION AND U WILL COME TO KNOW!!!
5000 CRORE IN CASH, WHAT MORE THEY NEED? IF THEY DONT START NOW THEN WHEN WILL THEY START???
THE WAY IT LOOKS IS THEY TOO EXPECTING A DOWN TURN IN THE BUSINESS SO THEY NOT RISKING MORE BUT WAITING AND WATCHING, SO THEY CAN USE THIS FUND IN THEIR BAD TIMES TO COME SOON!!!
IF THEY USE THIS MONEY NOW...THEY MIGHT NEED IT BADLY DURING RECESSION...DONT KNOW - THAT CAN BE A MINDSET TOO!!
RE:You can only be Optimistic
by Guest on Jul 12, 2008 04:14 PM Permalink
I absolutely agree with you Jagadeesan. I understand that indian IT companies are not innovative but they are atleast doing something. They are creating career opportunities for thousands of young professionals, offering them a good life style. Before blaming these companies we should look at ourselves and see how much innovative we are. Because we ourselves are Indians and are part of the same system. IT today is helping the country to prosper. Its these companies that has given India a global recongnization and respect.
RE:You can only be Optimistic
by abhishek Das on Jul 12, 2008 03:14 PM Permalink
Sudhir. i totally agree with you...... these guys speak a lot... but.. when it comes to really do something....... that's the end.. of it
