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The True Story behind
HIGH PROFILE EXITS
India’s Top IT Companies
In many countries around the world, they say that an evil eye can drown the fortunesof the individual or company. In India there is a huge industry manufacturing productsto help ward off the evil eye too. If one were to give a cursory look at the Indian ITCompanies over the last couple of years, you could almost conclude that the bad eyedid indeed befall the entire industry. Worldwide the India success story in informationtechnology was appreciated, envied and copied by many other countries. While wecould not do what China had done in manufacturing, we were able chalk an aggressivegrowth path in IT Services.So, what is going wrong today? Why did Satyam collapse? Why did Wipro CEOs getfired? Why did Mohandas Pai quit Infosys? Why did Ashok Soota leave the companyhe founded? Why are margins collapsing at all next level companies in the industry?And what does the future hold for the entire segment of industry? If you had all thesequestions in mind, and more, read on below because these are not isolated incidents,these are not one off cases.
These are the result of wrong policies being followed by companies
for years. This is the story of resources that lost track of their basics -of building a good skill based either on technology or on business sense.The pain areas and the challenges are listed in the following paragraphs.All the above developments over the last few quarters are not an isolated incident orsomething that has happened overnight, this was a disaster waiting to happen. As atechnical person in the operations department you have a very different perspective ofyour role and that of your client. When you upgrade to a management role sometimesthe perspective broadens to include other client activities but in most cases it ends upgetting more documentation oriented. Finally as a sales and marketing person is thefirst time when reality hits you, and you realize the need to actually focus on the
s objectives, the end use of the work that you are delivering and the need to be
very closely ingrained into the client’s requirements.
So, the period of evolution fromone role to another is something IT companies need to track very closely, andbe quick to identify those who are not measuring up.
I had been running my venture since early 2000 as part of a larger organization. Istarted independently in 2004 because I foresaw the current situation 5 years downthe line.
I am on record since then, with various media, when I said that Services companies will drop profit margins into their mid-teens in future so I wanted to get into IT Products and in Intellectual Property based work.
My logic was due to the percentage level that multinationals who set up base in Indiawere charging for their work. Today all top IT companies are facing the brunt and whenCEOs churn at companies like Wipro, and a leading organization like Satyamcollapses, you can be sure that there is a lot of turmoil that is happening down the line