March 2, 2006

Tough talk or reality?

This is another post "à la" take away from my India trip. Lately all that you hear from the large SI firms Accenture, IBM, HP is "I don't worry about my North American competitors, I worry about India" Before going to India I would have said this is just another way to play down your known competition and make your existing clients feel secure with you, because you have an India strategy.

After my trip to India I tend to believe now that it's not tough talk - it's reality. The reasons are: First the quality India is producing is good, if not better than our NA standards, just like Japanese cars are better than any other cars. Second the cost structure of an Indian company and a NA company are 180Degrees different. The NA company goes to India to lower its costs, with its bloated/heavy/fat cat upper management structure. The Indian company comes to NA with a sales office, paid on results, bodies working on visas going back as soon as they are done, and a Management structure that is no where the cost of the comparable services company in NA. So same or better quality at a lesser cost, awefully similar to the japanese car industry of the late 80s. This is a cocktail named "Wake up!"

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