Taking stock of IT Industry
At the outset, I should confess I am not jealous of our brothers and sisters employed in IT Industry for having becoming millionaires through fat salaries ESOP etc. This is a disclaimer akin to what ICAI has devised for its fraternity to furnish in their audit report. But the euphoria over the success of our IT Companies is certainly misplaced. Let us consider the following facts:
1. When a manufacturing facility is established, it gives direct employment to thousands who are skilled,qualifed, semi skilled and unskilled.
2. It also provides for logistics services to earn revenue by transporting the inputs and output to market.
3. It boosts the revenue of input suppliers
4. It also adds up to Revenue of government by payment of indirect/direct taxes
5. The facility helps local community to develop certain services for the employees of the Company thereby increasing community income.
contrast this with that of IT Industry
1, IT Industry wants all concessions from civil society and the government from land allotment, provision of amenities
2. It provides jobs for urban educated people unlike Para medical services( this opinion is not mine but that of celebrity Management Guru Govindarajan)
3. It does not pay direct taxes as they are exempt being mostly thru exports
4. It does not pay indirect taxes also since only tangible products suffer taxes
5. No one- I repeat no one else other than the stakeholders of IT company benefit in any way from their activities.
Now I believe IT is a powerful development tool which can be effectively used to bridge the divide between rural and urban India, between the rich and the poor. e-choupal is a shining example of IT revolutionsing people's lives. That is a product from a tobacco Company and not from IT Majors. The passenger Reservation systems, the land records computerisation, the on line payment facilities for civic amenities all add value to society. they are not products from IT Majors ( I exclude TCS here) ERP packages help to cut manufacturing costs. RAMCO system is the only one in this domain among all Indian IT Companies. Others simply mint money on BPO. We call this knowledge economy. Knowledge when it does not add value to society is a useless tinsel
|