Wednesday, February 11, 2009

Slow Down : A boon part 2

I received three cute emails in follow up to my previous article, wondering who were the other beneficiaries of slow down. Hence I am breaking away from blogging only on weekends.

This is the SME sector of India. I spoke to handful of folks who own a manufacturing companies / units. These are very progressive folks. They believe in leveraging technology. However they had a problem while the boom was on, any respectable vendor was prohibitively expensive. Rightly so. Why should a company of the league of Infosys look at sub $2000 realization per man month in domestic business. To complicate it further, most of the work being outsourced from US was pretty low end and hence easy to deliver. The Indian SME segment would have wanted solutions built grounds up and require competence. Its human nature to take the path of least resistance and hence most of the companies worth their salt focused on international business.

The slow down has brought sea change. Suddenly companies like TCS is big on SAAS model and Infosys licensing its IP to Airtel DTH. Everyone is looking at domestic market. The refrain that Indian market is tough and dirty is gone. For lot of medium sized software companies India is suddenly a focus market.

Hence we have a sweet spot where in Indian manufacturing segment is becoming efficient and on the other end Indian software companies are moving up the value chain.

Will soon write on next beneficiary ... India's engineering education system

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