Re: OT: A different perspective on Outsourcing
- From: PocoLoco <PocoLoco415@xxxxxxxxxxx>
- Date: Sat, 15 Oct 2005 08:14:07 -0400
On Sat, 15 Oct 2005 11:29:02 GMT, Shortwave Sportfishing <onetwothree@xxxxxxxx>
wrote:
>>From today's New York Times:
>
>October 15, 2005
>
>Saturday Interview
>
>Merely Following a Megatrend
>
>By ZUBIN JELVEH
>
>Is your job at risk? If it's the type of work that can be done over a
>wire, then probably yes, says Nandan M. Nilekani, the chief executive
>of Infosys Technologies.
>
>Infosys is India's second-largest outsourcer. After achieving success
>in software engineering and back-office service, it has now begun to
>compete with companies like I.B.M. for more lucrative consulting work.
>This week, Infosys reported that its second-quarter earnings rose 36
>percent. It raised its earnings forecast for the full year on stronger
>demand and a weaker rupee.
>
>In a recent interview, Mr. Nilekani, a chief executive who makes
>$60,000 a year at a company worth nearly $20 billion, spoke about
>Infosys's success and the danger that it and other companies like it
>pose to American competitors.
>
>Q. Are you worried about the outcry over outsourcing in America?
>
>A. What's happening is pretty fundamental. If you go back to the
>1830's, India and China were 50 percent of the world's G.D.P., 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.
>
>Q. Is there anything you realistically fear from Western policy
>makers?
>
>A. No. I think politicians have to win elections. But underlying
>secular trends like technology and demographics - you can't stop these
>things, they're all megatrends. They're going to happen whether you
>like it or not. In fact, the guys who are going to win are the ones
>who say, "It's going to happen anyway; let's figure out how we can
>take advantage of it."
>
>Q. Why did you branch out from just doing back-office work and add
>consulting to the mix of services you offer?
>
>A. Our customers want us to be good at sitting down with them,
>understanding their business challenges, helping them devise a
>solution and then implementing it. They expect us to go up the chain
>in terms of relationships and business value. We're not trying to be
>strategy consultants. We're not sitting there and saying, "Buy this
>company." Q. So now you'll be competing with the likes of I.B.M. and
>Accenture. Do you think you'll change the cost structure of the
>consulting business?
>
>A. 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.
>
>Q. What would that mean, to look more like you?
>
>A. In any software project, we do 30 percent of the work in the U.S.
>and 70 percent in India. Our competitors do 100 percent of the work in
>a particular location. We have sort of become masters of delivering
>high value and high quality at lower cost, and on top of that we're
>trying to add consulting. Their challenge is to retain their
>relationships and business knowledge while reconfiguring their
>internal operations to become as efficient as us.
>
>Q. Do you think you will be able to accelerate your consulting
>services as fast as companies like I.B.M. ramp up their operations in
>places like India to lower their costs?
>
>A. I think the challenge is fundamentally different. For us it's about
>hiring and growth and building a brand; for them it's about
>restructuring the work force and I think, frankly, I wouldn't want to
>do that job because it's very painful, whereas this is exciting.
>
>Q. What do you say to people who think that globalization will
>inevitably harm the United States work force?
>
>A. Every time Wal-Mart replaces a person at a checkout counter with an
>automatic machine they're eliminating thousands of jobs. This is one
>more facet of that, except it's more emotional because instead of a
>checkout counter machine replacing Steve Smith, some kid in Bangalore
>is replacing Steve Smith. You can point to that kid and say, "He took
>my job."
>
>Q. Does it feel odd to find yourself lecturing Americans on the joys
>of capitalism?
>
>A. 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."
Interesting!
And....no where does the guy say it's Bush's fault.
--
John H
"The trouble with our liberal friends is not that they're ignorant: It's just that they know so much that isn't so."
Ronald Reagan
.
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