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India Inc shining again!

Things are suddenly looking for bright for India Inc. A delegation from Ohio is here to invite Infosys to set up a shop in Cincinnati. TCS has already set up a development centre in Cincinnati. Their intention is to bring Americans back to the technical fields, create employment and boost the economy. I think the world has come full circle. Not too far back in the memory lane, everybody in the US is crying about outsourcing. There is also a popular slogan “you have been Bangalored” in the US. Now Indian IT companies are coming to rescue the US markets. By opening up new development centers and winning their outsourcing contracts India is indispensable to the US and the world. A US bank, Union bank of California has awarded a contract worth $15 bn to Infosys. Infosys has to race with one more vendor to win the contract. That vendor is TCS. When Obama is talking against outsourcing, this California bank has invited only two vendors (both Indian) and reached an agreement. Why did this bank not invite more bids? Is it the reputation of the Indian companies that sent other companies into the oblivion? Whatever it is, this is one more reassurance that outsourcing and India are inseparable.

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Indian Infotech companies on shopping spree – No credit, all cash!

Nasscom forecasted a 21-24% revenue growth for IT industry till April 2009. This is valued at $50 billion. Not the expected 30% growth, which the industry saw for the past 3 years. I think the final figure would settle down at 20%. Satyam has fired 4500 employees and the same news is expected from other companies. BPO companies are going easy on the hiring part. Reading this should you be worried? If you said yes then read on. Infotech is eyeing a $40 billion dollar acquisition in Germany. Satyam has 20000 crores for acquisitions. Satyam and TCS have gained key contracts in Middle East and Europe. Satyam has also acquired land for new facilities in Pune and Vizag. TCS is zeroing on buying the BPO arm (Citigroup global services) of Citibank for $550 million. Symphony Technology Group (STG), the US-based strategic holding company founded by an Indian, plans to invest $900 million (around Rupees 4,230 crore) in acquisitions. I guess everybody is following the Infosys-Axon-HCL triangular dance. Axon has agreed for a $441 million pound take over by HCL. Infosys, which wanted a SAP exposure through Axon, has to wait. May be HCL has paid a higher price for the company but it has gained key expertise and exposure to European market.

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TasksEveryDay.com: On demand virtual assistants for busy professionals and Businesspeople


Most of us have heard about Elance, getafreelancer or guru where users can outsource work to freelancers on project to project basis. These services are quite popular number of individuals and small business earn their livelihood through these sites. One of the main drawback of this service is that while quite a few do a good job and leave their clients satisfied, equal number of people perform their work quite unsatisfactorily. One can frequently see complaints and disputes between the freelancer and client. TasksEveryDay Now a new India based start-up called TasksEveryDay.com gives a new twist to this freelancing and targets a particular niche of people. They provide busy professionals and Business people in U.S, Canada, U.K and Australia with virtual assistant service at a fixed low rate of $6.98 per hour.

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The good side of US recession

I had earlier voiced my opinion that US recession may be a boon for Indian offshore software companies. Infact, even as America is moving into recession, Indian offshore companies are getting more business than ever before.

The impact of recession is undoubtedly higher to small and medium sized enterprises whose bottom lines get squeezed due to lack of spending by consumers. These thousands of small and medium enterprises are increasingly waking up to cash in on the outsourcing wave, a market opportunity explored by their big daddies for a couple of decades now.

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Recession and Indian IT services industry


Mark (name changed) wanted to outsource some of his development work. A typical outsourcing process starts with bidding, where companies from different cheaper countries including India would bid for projects. He asks one of his manager (An Indian abroad), to take a look at the different bids and choose the cheapest one. After looking at the bids, our Desi manager goes speechless! The bids received from Indian companies are almost equal to hiring a team abroad and getting the work done! getting the similar work done from countries like Brazil and Mexico is so cheap that they are quite comparable to an amount a typical Indian would spend during casual shopping or when they go out for a party with friends! The reasons for this are quite simple.

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Software outsourcing comes a full circle!

Global Economy

Outsource to countries where the work can be done at cheaper cost than India. And Indian companies are doing exactly that - opening offices before their clients approach these countries by themselves. The advantage Indian companies have is, they have mastered the outsourcing game over last few years. So before countries like Vietnam rise in outsourcing space, they setup shop and capture the market share.

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