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Indian IT firms failed to see the potential hidden in their own backyard
By    Jaya Smitha Menon
Wednesday,20 August 2008, 09:55 hrs IST
s to be answered right from the word 'go'. The integrated project management is another big expectation of the customers in India, as customers want to depend less on vendors for their output," explains Anil Jain Vice-President, Corporate Business Unit, Wipro.


But one main factor which worked against the Indian IT players except Wipro Infotech and probably HCL even after they started focusing on the market was that they lack the integrated approach taken by the global players like IBM and HP who set out to work on the entire IT business transformation for their clients by helping them design, build, maintain, and manage the complete system which includes both the hardware and the software.

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Reader's comments(7)
1 I endorse Ashwani's (CEO, Intecons Software Lab) comment. Local service
providers and buyers lack mutual trust and respect. Bribe fuels it to
unimaginable extent and dissatisfaction and bad experience rules the roost.
Those who wants to do sensible business looks elsewhere.
Posted by: Aru Ganesan Tuesday, August 19, 2008
2 DEAR
I think it is give and take of the business strategy india may have backyard
but western countries too have it just how exchange view ideas are exchanged in
the global world as vat was introduced now in india western countries had long
time it is the lesson to be learnt from each world
Posted by: agnelo Tuesday, August 19, 2008
3 Let's be a clear .... we are living in a global market. India is just one of the
many market segments - certainly a very promising segment. It is the maturity of
multinationals like IBM and Accenture that has put them where they are - "Slow
and Steady wins the race".
IBM's success in the Indian market segment and elsewhere in the world comes as
no surprise - do some research on their past and you will see how they have
repeated this feat over and over agian - from being perceived as underdogs to
ruling a market segment. Remember the IBM PC as an example.
Posted by: Debashish Sarkar Tuesday, August 19, 2008
4 It seems Technology/ Technologists are becoming more costly....An IT person is
dominating others in terms of cost, lifestyle and others. Are we loosing our
roots in following the western way........
Posted by: Kishen Tuesday, August 19, 2008
5 The problem is not overlooking the available IT market in India. I am writing
this as a middle level IT company. We know pretty well what the market for IT
services is within India or say in our backyard, but the problems are as
follows:

1. BIG corporates, rather prefer to deploy their own in-house team to reduce
cost. As the directly hired manpwoer works for much less then the money they
will pay to contracting IT company

2. The government sector, be it state or central is full of corruption and they
always have the ways and means to select the vendor they have been bribed by,
under the name of turnover and brand clauses

3. The SOHO segment of users, doesn't have the eye they need to justify the cost
of services. They always look and opt for Free when it comes to paying for the
service, even though they may spend millions on goods.

4. In spite of 3 atrocities described as #1,#2 & #3 above, if we still beg an
order from the so called backyard and execute this, our experience with the
Indian buyer is that he has no sense of appreciating the well defined boundaries
in project scope. Most Indian buyers will keep increasing the project scope
without even willing to talk in terms of price increase. While on the other hand
we as a software company see a great sense of project scope definition and
willingness to pay for extra work with the foreign buyers

All these together make a good reason for us to keep away from the so called
"Back yard" :)

Regards to all!

Ashwani
CEO, Intecons Software Lab, Jaipur - India
Posted by: Ashwani Goel Tuesday, August 19, 2008
6 this attitude seems to be etched within the Indian scenario.. the thing at hand
is always ignored.. its good that they are putting their stamps offshore, but at
the same time the onshore market should be explored as well.
Posted by: richa Monday, August 18, 2008
7 The scenario is not going to change in the recent future. I have heard many big
Indian clients saying they will accept only foreign company's technology. We
need to change that bias against Indian vendors.
Posted by: Jithenthra Monday, August 18, 2008


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