Infosys Reports Strong Earnings On Pent Up Demand During Recession
October 16, 2010

According to news reports, Infosys Technologies has posted robust earnings along with net profit for the quarter ending in September. The company says clients are beginning to place orders again in the wake of the recession. Read more

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China: The last frontier for India’s outsourcers
October 14, 2010

While India’s IT services and outsourcing firms have managed to build a global foot print in just about every corner of the world, there is one market just over the Himalayas that seems almost as insurmountable as the mountains themselves: China. In fact, a recent article in the Financial Times pointed out the following barriers faced by Indian IT services and outsourcing firms when in China: Read more

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Ohio attempts to ban offshore outsourcing
October 11, 2010

Last August, Ohio governor Ted Strickland issued an executive order to ban the offshore outsourcing of state government work. This is after he recently objected to Parago, a Texas based company that administers Ohio’s US$11 million appliance rebate programme, from offshoring certain tasks such as the processing of applications and the answering customer calls to a call center based in El Salvador. And in a follow-up letter to US Trade Representative Ron Kirk, Strickland wrote that while Indian officials have objected to his actions, he further pointed out that Indian officials have also admitted that they do not have a case in the World Trade Organization (WTO) because the Ohio executive order does not violate any trade agreement the US has with India. Read more

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Should India’s outsourcers fear China?
October 6, 2010

In the span of a just couple of decades, China has managed to wipe out much of the manufacturing base of the West (and the USA in particular) and now Indian outsourcers are asking the question: Will we be next? On the surface, Indian outsourcers need to be looking in the rear view mirror. After all, a recent article in the Financial Times noted that: Read more

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China Makes Headway In Outsourcing
September 26, 2010

Outsourcing has turned out to be a controversial subject but it has taken a lot of significance in the wake of a recovery as firms are looking to cut costs. So far, India has dominated the outsourcing landscape with outsourcing giants like Infosys, Wipro and Tata Consultancy Services. However, things are changing post recession. There have been a number of competitors that are giving Indian outsourcing firms a run for the money. Read more

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Can outsourcing create innovative business models?
September 24, 2010

In the last blog I explained how outsourcing helps innovation. In this blog I will discuss how outsourcing can help companies to come up with new and innovative business models using Bharti Airtel as an example. Read more

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Guanxi verses jugaad: Inside the minds of Chinese and Indian entrepreneurs
September 10, 2010

There is little doubt that both China and India and the respective cultures has given each society the ability to produce significant numbers of successful entrepreneurs – either at home or abroad. In fact, many of the technology related firms in Silicon Valley were started ether by Chinese (specifically Taiwanese) and Indian entrepreneurs. On the other hand, there also seems to be key differences between the Chinese and Indian entrepreneurial classes. For example: By-and-large, firms involved in offshore IT services and service outsourcing (Infosys, Wipro and Tata etc.) have largely been started by Indian entrepreneurs in India while Chinese entrepreneurs in China seem to achieve the most success in off-shore manufacturing and exporting (Haier etc). Read more

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Despite globalization, why is India still socialist?
August 31, 2010

India in the 21st century remains a country of stark contrasts and perhaps one of the biggest contrasts is how a country with a thoroughly globalized and thriving IT services and outsourcing industry can still be (officially) socialist. In fact, a recent opinion piece in the Wall Street Journal by Barun S. Mitra is well worth reading as he noted that in India, “we’re all (still) socialists.” His article began by noting that Indian politicians love to talk about “reform” and yet most of them still like to spend more money (Americans and Europeans, does this sound familiar?). Moreover and when it comes to spending US$22 billion in annual food or fertilizer subsidies or the rural employment guarantee scheme (and so on), there is little to no debate – despite the fact that India has a vibrant democracy around 50 political parties at the national level. Read more

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Does outsourcing really kill innovation?
August 28, 2010

Recently I read a blog in the Harvard Business Review web site. It is an interesting blog that discusses outsourcing and IT innovation. The blog suggests that large scale IT outsourcing limits strategic value of companies and limits innovation using IT as a strategic asset. It is sad that still blogs and articles are being written questioning the value of outsourcing and connecting company’s lagging innovation to outsourcing. Most of the Fortune 1000 companies in US have fully-owned subsidiaries in emerging countries like China, India, Brazil, Philippines, etc. US companies have been sending work from US to its subsidiaries all over the world. What do you call this practice? Outsourcing, offshore outsourcing, insourcing? Read more

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Boutique Players Likely To Play A Big Role In India’s Outsourcing
August 25, 2010

According to a new report by Forrester Research, second tier outsourcers located in India can offer specialized services in certain areas that their larger counterparts like Infosys or TCS may find too niche to resolve. Read more

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