Cloud around Indian IT Industry–Part 1

Every product has a shelf life. Indian IT has been putting new dates on the expiry of this shelf life by pumping more fresh and more low cost workers.

Indian IT industry which has been primarily in the hands of few big names have had their IT services process perfected to the level where it has reached the point of maximum return. Every quarter these IT majors come out with financial results having 25 to 30% cash profit. Really healthy for the industry where in West, this margin is considered as obscene. These IT majors have made IT industry and the academic institutions providing them with manpower as a “Producers of blue collared workers” of global IT industry instead of those who would keep adding value to the customer by helping them see more business and profit.

It is really rare to find any Indian company coming out with new product and value added processes which can delight the customer. Almost all are just workers who get the customer order and have been trained and programmed to get more orders and keep fulfilling them.

I have been working with a large US business house where we happened to go through the process of working of one such Indian IT major. It was sad to see that the processes adopted by them is “Hook and spread” with a sole motive of making their presence long at the customer’s premise. At no time, even in the most glaring of the cases, the IT provider never highlighted the pitfalls and the obvious issues in long run their work will bring to the customer, with a sole motive of staying put long and keep the image of “just IT workers” instead of innovation and improvement partners.

Cloud computing may shift this benefit enjoyed by these IT companies back to those who invest in creating products and services to benefit customers. It is not difficult to see that the direct customer of Indian IT companies may move back to companies like HP, IBM, Google and likes who as a matter of practice invest heavily in bringing technologies and services to benefit customer profit and sales. Indians so far are just good at doing what they have been asked to do.

It is not wrong to be harsh on the system which have in reality made the Indian IT industry nothing better than “Body shoppers” just fit to keep working in the existing commodity IT market.

I plan to dedicate my blog as a critic to the current IT industry in India and my thoughts on how the trend can be changed unless it is too late. A great article published today can be of interest to readers who agree to my thoughts.

Alok Kumar

Alok Kumar is Managing Partner of SRKay Consulting group, a private equity company, nurturing innovative ventures. Alok also serves on the board of ICCL (Indian Clearing Corporation Limited - A subsidiary of BSE- Bombay Stock Exchange) as an external advisor for technology and information security. Prior to this, Alok had been Managing Director of Sears IT & Management Services India Private Limited (SHI) since its inception in December 2009 and served in the same position till very recently. Having been in senior IT management positions in Fortune 500 companies, Alok has won several national and international awards. Alok is instrumental in planning and setting up SHI and thereafter growing it to a multi-locational thousand-plus people organization. Over the last five years, with his strategic vision, Alok helped SHI grow roots in India, develop and support technology applications and infrastructure across core mainframe, cutting edge e-Commerce and big data technologies. With his unique people-oriented transformational leadership style, Alok turned SHI into one of the most valued investments of Sears, garnering great ROIs, and creating value much beyond cost arbitrage. Under his tutelage, SHI has filed two patents and is recognized widely for its best practices in various areas, the latter, currently featured in Indian Institute of Management (IIM) case studies. SHI also became a CMMI Level 3, PCMM Level 3, and ISO 20000 certified organization. Alok is a widely acclaimed corporate leader in India today. He regularly participates and leads various forums as a keynote speaker and is an author of several books in different genres. Alok has several awards to his credit. He is particularly known in the industry for his people management skills and innovative ideas in improving the productivity of employees through unique people practices. He has been credited with the following industry awards: ¬ Emerging Leader of the Year award 2013 by ¬ Game Changer CEO of the Year 2013 (SHRM) ¬ CIO 100 - The Bold CIOs - 2008 (Reliance Infosolutions) ¬ CIO - Ones to Watch Award 2008 (Reliance Industries) ¬ Extended Manager Award - CIOL 2004 (Tata Teleservices) As an able leader of SHI, Alok got SHI recognized widely in the industry with the following several awards: ¬ CII Award for HR Best Practices in 2014 ¬ Global Excellence in Outsourcing Award - AIOP (Phoenix 2013) ¬ IT Innovation Award (Design & Engineering) - Computer Society of India 2012 ¬ Golden Company of the Year - Economic Times 2011-12 ¬ 7th Employer Branding Awards - World HRD Congress (Mumbai, India) 2013: • ‘Asia’s Best Employer’ Award • ‘Best HR Strategy’ in line with business • HR Leadership Award • Talent Management Award by Bloomberg TV India ¬ Employer Branding Awards - World HRD Congress (Singapore, Asia) 2013: • 7th rank in ‘Asia’s Best Employer’ award • Award for ‘Best HR Strategy’ in line with the business • HR Leadership Award Other recognitions: Alok had served on the distinguished panel of NASSCOM's GIC (Global In-house Centers) National Council members. The council members play a key role in major initiatives of the industry and include the torch bearers of IT industry as panel members. Books and Papers: Alok is an established author, with three books to his credit. Alok’s third and latest book, a novel, “The Spy from Unaula” is a 2015 publication. A handwriting analysis enthusiast, Alok collaborated with his wife Nandani on the book, “Handwriting Speaks” in 2006. “Value Sourcing – Future of IT Outsourcing” was co-authored with Keith Sherwell (currently CIO, Altice USA) and was released in 2013. Alok also researched and published two whitepapers: a. “Creating next generation captives” talks about the best practices that are helping generate higher value from the IT company captives.

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