Indian Software Innovation and Self Reliance
Software revolution in India started from 1984 under Prime Minister Rajiv Gandhi, who wanted to bring in technological developments to India and this continued with subsequent administration.
Since 1980’s companies such as Wipro, Tatas and Infosys ( a start up at that time) started their venture in developing software applications. This was a A good First step then, as there were very few technical experts in that area and infrastructure was also at an infant stage, there started a cost effective business model of Body Shopping where you help US and European companies in developing application basically coding the application.
In late 1990s to early 2000’s it graduated to Architecture, Support and development of software applications, including embedded systems which are used to interface and run electro mechanical systems , this was a GREAT improvement from where Indian software industry started these step was achieved with reasonable economic liberation, improvement in Telecommunication and Internet facilities.
The start up company like Infosys grew to be a Multi billion dollar Globally traded company along with Wipro, Tata consultancy and few more companies to join the line. The working capital to undertake product development and innovation is available with these companies, However to a GREAT surprise INDIA has 0 software products or innovative applications to call its own.
What was India Software inc doing since early 2000s till now?
Answer is simple BODY SHOPPING, simply bringing outsourced Product design and development work from US or European Multinationals and servicing them in house or onsite. Some projects were pretty much done by Indian companies onsite in US or Europe. The model was simple India Inc supplied the labor needed to execute the Product Development for the American Multinationals at very cheap prices and pretty much made revenues with the foreign currency received from these companies.
What did India gain by this Business Model?
A BIG 0. 0 products or intellectual property or Innovation , We infact exported some of the Brightest Indian brains to the Western World , While the Multinationals kept growing in to multi billion dollar firms with superb innovative applications. The Body Shopping or Outsourcing model have simply generated a Generation of Software coolies.
Is this Model Sustainable?
NO is the simple answer, The model is heavily dependent on cost effective Indian software labor force, facilitated through Immigration or work permit programs allowed by US and European Governments. US firms are the biggest customers for Indian Software development or body shopping firms, there fore these FIRMS are heavily dependent on US H1-B or L1 visa programs, some of India Inc Major Software service or body shopping providers have abused this programs too, which has lead in a severe BACK LASH and protectionism in US. There are currently 2 bills pending in Congress where a H1-B worker needs to be paid 130k ( which is far higher than the pay offered to an average American worker), these bills will high likely be passed looking at the Election Mandate from US voters.
If these bills are passed, Indian companies will simply be less competent and will simply loose the US market. It is Not a self reliant model and innovation in an Industry will always provide GROWTH and Prosperity, that is the key reason US is a leader in many industries.
How can Indian Software Industry survive?
There are few changes India Inc can make to be a global leader in software industry
1. Innovate , design , develop and patent new software application
2. Spend at least 5% of cash flow on Innovation
3. Develop and establish regional R& D centers
4. Facilitate ENCOURAGE and PARTNER to undertake R&D with the help of LOCAL university
5. Lobby Indian Government to provide them the required tools to undertake R&D, Innovation
6. Empower THEIR EMPLOYEES to think outside the BOX, even if they make make mistakes or fail
We at WWW.INVENTORYGAIN.COM AND WWW.INVENTORY-DEAL.COM being a very small organization, encourage our team to be innovative think out side the box, we always consider failure as a lesson and that is how innovation can be achieved. We are working on a ERP/E COMMERCE TOOL.
When we can think BIG why can’t the Industry Honcho’s not THINK BIG?