IT INDUSTRY SHOULD STAND UP AND FIGHT
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    • IT INDUSTRY SHOULD STAND UP AND FIGHT
    President Obama our PM's Bosom friend -( not to the extent of George Bush Jr.) called for withdrawing tax breaks to those companies who outsource their jobs to other countries. The Commerce Minister Anand Sharma, Nasscom past President Kiran Karnik and a host of IT icons have came down heavily on this step of the President as being India specific and targeting our IT companies. I have always believed that the success of Indian IT notably Infosys and Wipro has been basically an arbitrage opportunity. It is sheer coincidence that these Companies could do a job much cheaper than what it costs in USA and developed economies. The recession hit US companies found it economically right to export such repetitive jobs as back office and front office functions such as payroll accounting, managing personal finances etc. the cost arbitrage opened up a plethora of opportunities for neo liberals and elites like Narayanamurthis, Nandan Nilekanis, and Aziz Premjis to hog the limelight and share podium with the rich and powerful their modest background not withstanding. They were seen as new messiahs of liberalisation for having unleashed a new wave of what is called a knowledge economy. The firs such instance of cashing on intellectual property was scripted by Rajesh Jain when he sold his portal India.com to sify for a whopping 499 crores of Rupees. But Rajesh Jain made a meaningful contribution to IT as a development tool when he talked about community PCs sharing a single server to bring down cost of PCs and to increase penetration levels,his idea has been improvised by IIT Chennai's Jhunjhunwala who has been now offering PCs at unbelievably low prices through a licenciate firm. 

    The logic of Obama is that he is elected President of USA and his primary duty is to create job for Americans. Any government with self respect will only do that. Otherwise they will become banana republics. Narayanamurthi and his ilk have been talking of Private enterprise without any control. Why do they need support at all to run their business? what is business after all if it is without any risks? If you have not factored in such inherent risks due to change in sourcing policies, you are unfit to be in business. If tomorrow a competitor in Vietnam under quotes you you will still lose business.  Already IT and ITES are mollycoddled as never before without any meaningful contribution to the soceity at large. It is time, IT Industry meets the challenges and prove the mettle rather than fighting diplomatic battles.
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