Saturday, September 1, 2001
Beware Temporary Success
I have had the experience of working for an Indian IT company and also in a huge U.S.-based MNC. Unfortunately Indian IT companies have very short vision. While India's IT companies are eyeing short-term gains, MNCs are fast creeping into India and developing their own engineering centers in an effort to stop outsourcing from Indian IT firms. They are paying much better than the smaller Indian IT firms and so the latter fail to retain efficient workers. Also, the benefits that Indian IT firms offer in terms of employee stock options are poor. All this does not bode well for Indian IT companies. Something tells me that Murphy's Law shall hold. Things rise to a height only at the same rate that they fall back (example: the stock price of these IT companies).
- Manish
Governmental Shackles
F.C. Kohli, founder of Tata Consultancy services, is arguably one of the top 10 businessmen in India. In your interview with him (“Choosing the Harder Road” siliconindia, August 2001), he rightly states that India's hardware industry is miniscule, “because it's a very easy and soft option to bring in a box and sell it.”
But the interview completely avoids the primary reason for the failure to date of India's hardware manufacturing industry: governmental intervention. Through 50 years of subsidies (to “acceptable” industries and businesses), import controls on raw materials and partially-finished goods alike, and strict export regulations, India has successfully defeated the possibility of having a hardware manufacturing industry as robust as the ones he refers to in Malaysia or Thailand. The discussion with Kohli dances around the governmental intrusion explanation, perhaps because of the continued close government ties even TCS must maintain to ensure success.
This neglect of an honest answer to a real problem is troubling for all future entrepreneurs. If a seasoned, respected member of the Indian business community won't ask the government to get out of business, who will?
- Heather Reid
Globalization Not the Only Answer
With reference to the interview with AIG Chairman Maurice Greenberg (“First Steps into a Big Market” siliconindia, June 2001), the opening up of the Indian insurance sector is not because LIC and GIC were defaulters, while private companies won't be. Even before the insurance sector was nationalized, there were private insurance companies, and they were the major defaulters. This is why the government nationalized the insurance sector to begin with. I don't mean that the government shouldn't open up the sector at all, but there should be some kind of authoritative agency, which will monitor the transactions of these companies. Globalization is not the only medicine for all of the ills India is facing right now. We need to concentrate on basic things like education, food and healthcare.
- Sridhar Tipirneni
Followers
In response to the article on biotechnology in India (“India’s Latest Winner?” siliconindia, August 2001) Just because Indian software engineers are getting scared of the gradual tech slowdown, they are starting to push biotechnology. India is a pure follower, akin to China. In a few years, I would not be surprised to see all of the infamous computer certificate classes in India turn into biotech certificate programs.
- Steve Hansen
IT Gurus
Whenever I read siliconindia, I always feel like it motivates me to bring out best within me! The articles inside each issue keep in mind the cultural base of Indian techies and entrepreneurs. The magazine gives the mantra to us. It helps us spearhead our efforts to get involved in the changing global scenario, especially in the field of information technology, by representing examples of our own people and how they are becoming IT gurus.
I thank siliconindia and its team for their marvelous effort, and for keeping a surya in front of us.
- Rajendra Edke
