Indian outsourcers follow a megatrend

Discussion in 'NZ Computing' started by Lawrence D'Oliveiro, Oct 16, 2005.

  1. Nice interview
    <http://news.com.com/Indian+outsourcers+follow+a+megatrend/2100-1022_3-5896290.html>
    with Nandan Nilekani, CEO of Infosys, one of those big Indian IT
    outsourcing firms that the USians are complaining about. Some choice
    quotes:

    Are you worried about the outcry over outsourcing in America?
    Nilekani: What's happening is pretty fundamental. If you go back to the
    1830s, India and China were 50 percent of the world's GDP, and then they
    missed the entire revolution of industry. So if you take a long view of
    this game, it's just part of the process.

    ...

    So now you'll be competing with the likes of IBM and Accenture. Do you
    think you'll change the cost structure of the consulting business?
    Nilekani: This is a battle of business models. We believe that at the
    end of the day we have a disruptive business model that is a threat to
    the existing business model and older companies will have to reconfigure
    themselves to look more like us if they're going to be globally
    competitive.

    (Here's a guy who knows what "disruptive" means, and how to use it as more
    than a marketing term. Unlike Sun.)

    Does it feel odd to find yourself lecturing Americans on the joys of
    capitalism?
    Nilekani: You guys told us for so many years to cut out this socialist
    rubbish and go to free markets. We came to free markets and now you're
    telling us, "Stop, don't come."
     
    Lawrence D'Oliveiro, Oct 16, 2005
    #1
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  2. Lawrence D'Oliveiro

    thingy Guest

    Lawrence D'Oliveiro wrote:
    > Nice interview
    > <http://news.com.com/Indian+outsourcers+follow+a+megatrend/2100-1022_3-5896290.html>
    > with Nandan Nilekani, CEO of Infosys, one of those big Indian IT
    > outsourcing firms that the USians are complaining about. Some choice
    > quotes:
    >
    > Are you worried about the outcry over outsourcing in America?
    > Nilekani: What's happening is pretty fundamental. If you go back to the
    > 1830s, India and China were 50 percent of the world's GDP, and then they
    > missed the entire revolution of industry. So if you take a long view of
    > this game, it's just part of the process.
    >
    > ...
    >
    > So now you'll be competing with the likes of IBM and Accenture. Do you
    > think you'll change the cost structure of the consulting business?
    > Nilekani: This is a battle of business models. We believe that at the
    > end of the day we have a disruptive business model that is a threat to
    > the existing business model and older companies will have to reconfigure
    > themselves to look more like us if they're going to be globally
    > competitive.
    >
    > (Here's a guy who knows what "disruptive" means, and how to use it as more
    > than a marketing term. Unlike Sun.)
    >
    > Does it feel odd to find yourself lecturing Americans on the joys of
    > capitalism?
    > Nilekani: You guys told us for so many years to cut out this socialist
    > rubbish and go to free markets. We came to free markets and now you're
    > telling us, "Stop, don't come."



    Funny is'nt it? globalisation from American mega corps thinking they
    could buy the world was the greatest thing since sliced bread, except it
    has not quite worked out. It was OK for the USA to rape the 3rd world
    for raw materials, but now the 3rd world is getting vengence its all
    unfair....

    So they have cheap and plentiful labour, cheap OSS in Linux and mysql,
    etc etc, two huge advantages, and all America can do is try and become
    protectionalist....

    regards

    Thing
     
    thingy, Oct 16, 2005
    #2
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  3. Lawrence D'Oliveiro

    Rob J Guest

    In article <>,
    y says...
    > Lawrence D'Oliveiro wrote:
    > > Nice interview
    > > <http://news.com.com/Indian+outsourcers+follow+a+megatrend/2100-1022_3-5896290.html>
    > > with Nandan Nilekani, CEO of Infosys, one of those big Indian IT
    > > outsourcing firms that the USians are complaining about. Some choice
    > > quotes:
    > >
    > > Are you worried about the outcry over outsourcing in America?
    > > Nilekani: What's happening is pretty fundamental. If you go back to the
    > > 1830s, India and China were 50 percent of the world's GDP, and then they
    > > missed the entire revolution of industry. So if you take a long view of
    > > this game, it's just part of the process.
    > >
    > > ...
    > >
    > > So now you'll be competing with the likes of IBM and Accenture. Do you
    > > think you'll change the cost structure of the consulting business?
    > > Nilekani: This is a battle of business models. We believe that at the
    > > end of the day we have a disruptive business model that is a threat to
    > > the existing business model and older companies will have to reconfigure
    > > themselves to look more like us if they're going to be globally
    > > competitive.
    > >
    > > (Here's a guy who knows what "disruptive" means, and how to use it as more
    > > than a marketing term. Unlike Sun.)
    > >
    > > Does it feel odd to find yourself lecturing Americans on the joys of
    > > capitalism?
    > > Nilekani: You guys told us for so many years to cut out this socialist
    > > rubbish and go to free markets. We came to free markets and now you're
    > > telling us, "Stop, don't come."

    >
    >
    > Funny is'nt it? globalisation from American mega corps thinking they
    > could buy the world was the greatest thing since sliced bread, except it
    > has not quite worked out. It was OK for the USA to rape the 3rd world
    > for raw materials, but now the 3rd world is getting vengence its all
    > unfair....
    >
    > So they have cheap and plentiful labour, cheap OSS in Linux and mysql,
    > etc etc, two huge advantages, and all America can do is try and become
    > protectionalist....
    >
    > regards
    >
    > Thing


    Some sectors of the US and politicians are protectionist, other
    companies are falling over themselves to invest in these countries.
     
    Rob J, Oct 16, 2005
    #3
  4. Lawrence D'Oliveiro

    Evil Bastard Guest

    thingy wrote:
    > and all America can do is try and become
    > protectionalist....


    You mean there was a time when America was /not/ protectionist?

    --
    Cheers
    EB

    --

    One who is not a conservative by age 20 has no brain.
    One who is not a liberal by age 40 has no heart.
     
    Evil Bastard, Oct 16, 2005
    #4
  5. In article <435231c8$>, Evil Bastard <> wrote:
    >thingy wrote:
    >> and all America can do is try and become
    >> protectionalist....

    >
    >You mean there was a time when America was /not/ protectionist?


    Interestingly, there was recent comment on the trade talks that the USA was
    talking about cutting some of it's farm subsidies. Those were words that I
    certainly never expected to hear.


    Bruce

    ----------------------------------------
    I believe you find life such a problem because you think there are the good
    people and the bad people. You're wrong, of course. There are, always and
    only, the bad people, but some of them are on opposite sides.

    Lord Vetinari in Guards ! Guards ! - Terry Pratchett

    Caution ===== followups may have been changed to relevant groups
    (if there were any)
     
    Bruce Sinclair, Oct 17, 2005
    #5
  6. Lawrence D'Oliveiro

    thingy Guest

    Evil Bastard wrote:
    > thingy wrote:
    >
    >>and all America can do is try and become
    >>protectionalist....

    >
    >
    > You mean there was a time when America was /not/ protectionist?
    >


    Early in its life probably not, (pre 1900) I think its vested interests
    now means that will increase.

    I think greed got the better of them over then last 20 years, low labour
    meant high margins sold into their domestic market, and they loved China
    etc. Now though they are finding that they no longer control or benefit
    from those margins as they once did.

    regards

    Thing
     
    thingy, Oct 17, 2005
    #6
  7. Lawrence D'Oliveiro

    thingy Guest

    Bruce Sinclair wrote:
    > In article <435231c8$>, Evil Bastard <> wrote:
    >
    >>thingy wrote:
    >>
    >>>and all America can do is try and become
    >>>protectionalist....

    >>
    >>You mean there was a time when America was /not/ protectionist?

    >
    >
    > Interestingly, there was recent comment on the trade talks that the USA was
    > talking about cutting some of it's farm subsidies. Those were words that I
    > certainly never expected to hear.
    >
    >
    > Bruce


    I think that was qualified, ie providing the EU dropped its even more,
    ie a net gain to the US, I dont expect the EU to go for it.

    regards

    Thing
     
    thingy, Oct 17, 2005
    #7
  8. Lawrence D'Oliveiro

    thingy Guest

    Rob J wrote:
    > In article <>,
    > y says...
    >
    >>Lawrence D'Oliveiro wrote:
    >>
    >>>Nice interview
    >>><http://news.com.com/Indian+outsourcers+follow+a+megatrend/2100-1022_3-5896290.html>
    >>>with Nandan Nilekani, CEO of Infosys, one of those big Indian IT
    >>>outsourcing firms that the USians are complaining about. Some choice
    >>>quotes:
    >>>
    >>> Are you worried about the outcry over outsourcing in America?
    >>> Nilekani: What's happening is pretty fundamental. If you go back to the
    >>> 1830s, India and China were 50 percent of the world's GDP, and then they
    >>> missed the entire revolution of industry. So if you take a long view of
    >>> this game, it's just part of the process.
    >>>
    >>> ...
    >>>
    >>> So now you'll be competing with the likes of IBM and Accenture. Do you
    >>> think you'll change the cost structure of the consulting business?
    >>> Nilekani: This is a battle of business models. We believe that at the
    >>> end of the day we have a disruptive business model that is a threat to
    >>> the existing business model and older companies will have to reconfigure
    >>> themselves to look more like us if they're going to be globally
    >>> competitive.
    >>>
    >>>(Here's a guy who knows what "disruptive" means, and how to use it as more
    >>>than a marketing term. Unlike Sun.)
    >>>
    >>> Does it feel odd to find yourself lecturing Americans on the joys of
    >>> capitalism?
    >>> Nilekani: You guys told us for so many years to cut out this socialist
    >>> rubbish and go to free markets. We came to free markets and now you're
    >>> telling us, "Stop, don't come."

    >>
    >>
    >>Funny is'nt it? globalisation from American mega corps thinking they
    >>could buy the world was the greatest thing since sliced bread, except it
    >>has not quite worked out. It was OK for the USA to rape the 3rd world
    >>for raw materials, but now the 3rd world is getting vengence its all
    >>unfair....
    >>
    >>So they have cheap and plentiful labour, cheap OSS in Linux and mysql,
    >>etc etc, two huge advantages, and all America can do is try and become
    >>protectionalist....
    >>
    >>regards
    >>
    >>Thing

    >
    >
    > Some sectors of the US and politicians are protectionist, other
    > companies are falling over themselves to invest in these countries.


    Yes I used to work for one, India was cheap so they went there, labour
    costs rose, ditto Malaysia, so now its Egypt...

    Trouble is those Malaysians and Indians are not sitting around feeling
    abandoned. They are now moving up the value chain, they have level 1 & 2
    support now level 3 and are moving into the consultancy and programming
    market more and more, eating up from underneath.....Why employ an
    American company with an overpaid CEO who uses cheap Indian Labour
    anyway. Why not go with the Indian CEO whose company the American one
    used? more direct communication and cheaper.

    regards

    Thing
     
    thingy, Oct 17, 2005
    #8
  9. In article <>, thingy <> wrote:
    >Bruce Sinclair wrote:
    >> In article <435231c8$>, Evil Bastard <>

    > wrote:
    >>>thingy wrote:
    >>>
    >>>>and all America can do is try and become
    >>>>protectionalist....
    >>>
    >>>You mean there was a time when America was /not/ protectionist?


    >> Interestingly, there was recent comment on the trade talks that the USA was
    >> talking about cutting some of it's farm subsidies. Those were words that I
    >> certainly never expected to hear.


    >I think that was qualified, ie providing the EU dropped its even more,
    >ie a net gain to the US, I dont expect the EU to go for it.


    Very likely. I just never expected to hear a US official offering this under
    any conditions :)


    Bruce

    ----------------------------------------
    I believe you find life such a problem because you think there are the good
    people and the bad people. You're wrong, of course. There are, always and
    only, the bad people, but some of them are on opposite sides.

    Lord Vetinari in Guards ! Guards ! - Terry Pratchett

    Caution ===== followups may have been changed to relevant groups
    (if there were any)
     
    Bruce Sinclair, Oct 18, 2005
    #9
  10. Lawrence D'Oliveiro

    Geoff M Guest

    On Sun, 16 Oct 2005 18:14:03 +1300, thingy wrote:

    > Funny is'nt it? globalisation from American mega corps thinking they
    > could buy the world was the greatest thing since sliced bread, except it
    > has not quite worked out. It was OK for the USA to rape the 3rd world
    > for raw materials, but now the 3rd world is getting vengence its all
    > unfair....


    Sure, the US worker is getting stiffed (again), both with loss of jobs and
    loss of the tax base, but it is not all bad. The CEOs and big brass of the
    corporations have made lots and lots of money from it. So it stuffs the
    company? So what - this quarters results look good, the stockholders are
    happy, they cash in their options and it is someone else's problem.
    We have only seen the tip of the iceberg. I expect GM to go broke to avoid
    paying their pension scheme liabilities, and China to get serious about the
    car making business> Sure they are rubbish at present - the Landwind 4wd
    got the "unsafest car in the world" award recently, but that will change
    with the big companies manufacturing in China - ie giving them all the
    secrets, whether they wanted to or not. I see Yamaha is suing some Chinese
    makers for ripping off their motorbikes. I don't fancy their chances
    Geoff
     
    Geoff M, Oct 18, 2005
    #10
  11. T'was the Mon, 17 Oct 2005 18:34:35 +1300 when I remembered thingy
    <> saying something like this:

    >Trouble is those Malaysians and Indians are not sitting around feeling
    >abandoned. They are now moving up the value chain, they have level 1 & 2
    >support now level 3 and are moving into the consultancy and programming
    >market more and more, eating up from underneath.....Why employ an
    >American company with an overpaid CEO who uses cheap Indian Labour
    >anyway. Why not go with the Indian CEO whose company the American one
    >used? more direct communication and cheaper.


    Tata Consultancy Services have the goal of being the biggest IT
    consultancy agency by the end of the decade. At the rate they're
    going, they'll probably get there.
    --
    Cheers,

    Waylon Kenning.
     
    Waylon Kenning, Oct 18, 2005
    #11
  12. In article <>, wrote:
    >T'was the Mon, 17 Oct 2005 18:34:35 +1300 when I remembered thingy
    ><> saying something like this:
    >
    >>Trouble is those Malaysians and Indians are not sitting around feeling
    >>abandoned. They are now moving up the value chain, they have level 1 & 2
    >>support now level 3 and are moving into the consultancy and programming
    >>market more and more, eating up from underneath.....Why employ an
    >>American company with an overpaid CEO who uses cheap Indian Labour
    >>anyway. Why not go with the Indian CEO whose company the American one
    >>used? more direct communication and cheaper.

    >
    >Tata Consultancy Services have the goal of being the biggest IT
    >consultancy agency by the end of the decade. At the rate they're
    >going, they'll probably get there.


    Are these the same "Tata" group that make cars and other such things ? If
    so, I recall (possibly correctly :) ) that this corporate actually is
    already some % of the total indian economy. I recall 3% and 15 % and suspect
    the 3 is right :)


    Bruce

    ----------------------------------------
    I believe you find life such a problem because you think there are the good
    people and the bad people. You're wrong, of course. There are, always and
    only, the bad people, but some of them are on opposite sides.

    Lord Vetinari in Guards ! Guards ! - Terry Pratchett

    Caution ===== followups may have been changed to relevant groups
    (if there were any)
     
    Bruce Sinclair, Oct 19, 2005
    #12
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