16 May, 2005

Go up the value chain or perish -ZDNet:
There's definite evidence of India excelling in the IT industry. But within this vast spectrum of IT services, including consulting, ITES, application development, what can be called India's niche area of expertise?

India needs to identify an area of specialisation in the face of rising competition from countries such as Russia, the Philippines and China. We need to excel in providing a certain category of goods and services, so we do not lose our footing when the eventual exodus starts - of countries shifting their outsourcing requirements to nations which have a definite cost advantage over India in terms of lower labour rates, better infrastructure and less red tapism.

With India having captured only 0.2% of the $180 billion global software product development market, there is still a long way ahead for us. Offshoring in the early 1990s began with product development, and not IT services. In the mid 1990s, the focus shifted to outsourcing IT services.

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