There are several reasons for its faliure the primary one's are-
1. When you peanuts you get monkeys. There is a constant tendency in Indian companies to say their employees work for them for "higher satisfaction". A prime example being TCS where the same management which issues itself shares for Re1/- and the same employers who gohome with large earnings and buy other companies to increase their wealth somehow when it comes to employees say that they need not pay higher salaries as employees are given much more satisfactory work. At some point people realize the fool management is making of them and leave. No wonder then that companies that pay more like Infy and Reliance do better in productivity
2. Project Management - Bureaucrats that frame the grants for government departments dont have a clue what will be the cost of such projects. They try to randomly reduce budget allocations. Departments like DRDO sometimes submit lower project estimates to ensure a project is passed but once they get going the pinch hits them and then they have to wait for next grant which requires more effort and more time delaying projects
3. Sometimes its just best not to reinvent the wheel. Boeing doesnt need to make its own engines as long as Rolls Royce and GE engines suit the requirement. Delhi Metro doesnt need to build its own train if their are vendors that can reliably supply it in cost efficient way. TELCO doesnt need to design Indica if work can be done better in Italy. Dell doesnt n
