When literacy is counter-productive

While I usually junk spam without even taking a look, there was one mail that recently popped in that instantaneously caught my attention. It was about the political gimmick in a boorish State in India that will probably impede proposed technology investments into the State.

At a time when there is intense competition, both within and outside India for attracting investors, this political rhetoric transcribed and sent by mail really bemused me. A lot to do with being a Keralite. A short holiday there after two years had brought to notice manifold changes for the better, however, the mindset or attitude of inhabitants seemed tethered. The little developments, I was to later learn, were primarily the efforts of NRKs, short for Non Resident Keralites. The mail with the subject Kerala initially brought to mind the people there and the little developments. And, it was in that context and inquisitiveness that I decioded to open the mail.

The proposed investment from Microsoft, IBM, Cisco and other majors had instilled enough faith in me about the progressive measures initiated by the present government. The State will attract the biggies through “smart city” a unique venture with strategic tie-up with Dubai Internet City. Just when the ground seems fertile for investments, unapprised and egotistical political leaders are overtly seen crafting ludicrous scenarios that might emerge post the development of the smart city. According to one, the smart city because of its association with Dubai could be a direct avenue for terrorists into India. Well, one wonders why he could not stretch his imagination on a positive note. Though, it is amply clear that the motive is to exert pressure on the initiators to accommodate his interest, the so called educated lay man in Kerala is increasingly seen swarming areas of such rhetoric. Wonder, who would expel the old political war horses and their acquaintances who are eager to dawn any role irrespective of initiatives.

For the sake of differentiating

The high-tech dynamic market of today demands continuous efforts from companies to sustain competitive advantage. IT companies involved in outsourcing seem to have beaten to death various principles of creating and sustaining competitive advantage. While cost differentiation has become an undistinguished factor in outsourcing, ‘focus on a particular niche’ has been provided a broader meaning. The communication emanating from IT companies and the activities carried out by them certanly points out stark dissonance. The message seems to conveniently broaden ‘niche’ and ‘focus’ to accommodate service offerings and target audience of these IT companies.

With the industry offering no more room for differentiation to outsourcing companies especially on the delivery, technology or cost front, there is increased activity on the communication initiatives undertaken by these companies. After all, isn’t it the media that provides a platform for creating differentiators? Be it advertisement or editorial, the increase in outsourcing various activities by businesses across the world has led to increased competition among firms for creating ‘competitive concept differentiators.’ Take a look at the various acronyms donning the pages of mainstream media – BPO, KPO, AMO, vBPO, ADM…to name a few. Is there a clear cut differentiation among these? Well, a lot depends on the context where it’s being spoken. For a person in the US, anything outsourced would come under the purview of BPO. Not in India where a burgeoning number of companies are trying to differentiate from each other for garnering a larger pie of the outsourcing market.

When the market is a clutter with companies operating in the same having no clear cut competitive differentiators, the industry will witness ‘competitive concept differentiators’ essentially aimed at gaining prominence in the clutter and establishing thought leadership. The objective, of these firms whose business models can easily be replicated, is solely to gain mindshare of target audience comprising customers, prospective customers, investors, analysts and talent. The number of concepts pervading the market will exemplify this fact. While the industry evolved with the concept of outsourcing, it gave rise to offshoring or offshore outsourcing. Then came best shoring, co-shoring, smart shoring, global development model, 4th generation outsourcing and a lot more expected soon. Communication professionals seem to be having a field day.

Engineering institutes to impart management modules

The recent McKinsey Global Institute findings highlight the need for Indian engineering institutes to review the curriculum. If India has to sustain the IT advantage, the policy makers should join hands with the industry to cater to the industry requirements. While lot of strategies have been formulated and publicised, it is time to implement the same on a war-footing manner. The Chinese are burning the midnight oil to churn out industry ready engineering graduates when we Indians are embroiled in scams and controversies on education policies. While top tier Indian firms have announced their aggressive plans to strategically align with engineering institutes for ensuring quality employees, it can only be seen as a short-term and selfish solution. The objective here is to instill s/w engg practices that will provide them a foot hold in the industry. When the industry is embracing techno-business projects, it is imperative to instill fundamental business principles to prospective employees, which is lacking. When China is taking steps towards learning English, we are creating hurdles for present and prospective employees through compulsory certifications and admission tests.

Sun rise or Sun Set

The unfailing, consistent image of "enduring India" in the IT industry has been given a shove by the recent McKinsey Global Institute findings. The consultancy has delved into various issues which has been hitherto overshadowed by the mind-boggling offshoring stories by IT companies in India. If the numbers are to be believed, we are in for a major employment cataclysm. Take this, only 25% of the engineering graduates are considered suitable for jobs by MNCs. While it is certainly higher than China, we produce half of what Central Europe churns out. Anothet eye-opener, only 1.2 mn people hold engineering degrees in India, which is 4% of the total university educated workforce. Compare this with 33% in China and 20% in Germany - your jaw is bound to drop. The search for the eluding middle managers is another notable disdvantage. With Russian and US companies poaching trained managers, the industry is increasingly encountering quality issues. The demand for quality talent is soon bound to outstrip supply and with steep increase in wages, the future for the IT industry hangs precariously in the corridors of policy makers.