Tuesday, November 08, 2005

Thought Leadership

Where is the future of Indian software companies

In a recent artice that I read in Businessworld it was mentioned that the future of software companies who are in the middle rung of the market will be in jeopardy. The prime reason behind this assumption to me lies in a very old fact of Economic Value added, most of the work that is happening in India because of its generic nature does not result in adding as much value, for example the per employee revenue of Infosys is nearlly a tenth of Microsoft.
If this is the state of affairs in one of the India's leading player in the software industry what would be the scenario in other middle to lower rung software companies.
It is sometimes said that Indians lack innovativeness, but if this is the scene how is it that the same Indians when working in the development labs of Microsoft and Oracles of this world produce world class softwares.

Where is the future of Indian software companies
In a recent artice that I read in Businessworld it was mentioned that the future of software companies who are in the middle rung of the market will be in jeopardy. The prime reason behind this assumption to me lies in a very old fact of Economic Value added, most of the work that is happening in India because of its generic nature does not result in adding as much value, for example the per employee revenue of Infosys is nearlly a tenth of Microsoft.
If this is the state of affairs in one of the India's leading player in the software industry what would be the scenario in other middle to lower rung software companies.
It is sometimes said that Indians lack innovativeness, but if this is the scene how is it that the same Indians when working in the development labs of Microsoft and Oracles of this world produce world class softwares