India has been consistently moving north in terms of growth in IT service market globally since last two decades. As an Indian, I feel proud of this achievement. Indian government also have done a lot by giving all sorts of tax benefits and even coming out with SEZ concept recently. The results have been certainly very positive. The biggest question now is on the consistency of this growth.
If we have to appreciate the alarm I have in mind we have to look back and see the fate of several such industries and the new order emerging to benefit the customer and almost always hitting the provider company. When Personal computers were new in India, few companies assembled them and the service was done by qualified engineers who passed from reputed colleges. I recall, that selling a single PC was an event to be celebrated as it was so expensive and only few had knowledge of the use itself. Twenty years down the line, Personal computer sales and service is done by corner shop guy who is not enough educated, but is smart enough to repair computers and even assemble and sell them. Lowering of cost also has increased the user base and brought in competition for big names from insignificant players. Constant evolution and innovation has increased jobs but reduced margins drastically.
This is the same what happened in telephony, internet broadband, banking, healthcare and almost everywhere. It is evident that in each area, while the essence of service and product was the same old, the innovation of service and delivery and lowering of cost made all the difference.
In Indian IT service industry it is just the opposite what is happening. The innovation and evolution is hardly any and cost of service is on the increase. This is contrary to the principles of mass usage of any product or service. That would mean that users would move more to those services which will provide lower cost service and value for money. Packed software and cloud delivery would fit this bill.
The wealth of knowledge and information base Indian IT companies have by the virtue of servicing the top most companies globally has not been utilized at all for future planning except for using same model for more business. Apple changed the way world computed, Android is taking this forward, Linux took Microsoft head on improving both. Virtualization opened new avenues for optimization and SOA brought new thinking into software utilization. We have dozens of such innovations over last couple of years done by IT industry globally, but not a single by Indian IT companies.
Really, this wealth of knowledge on which new path can be planned is being wasted. What a waste!