The Great Indian IT Squeeze 25
An anonymous reader shares a report: The Indian IT sector has operated for decades under the dominance of major firms TCS, Infosys, Wipro, and HCLT. The historical growth of these companies was tightly coupled with the U.S. economy through a strong "multiplier effect," where Indian IT export growth significantly outpaced US GDP growth. This reliable growth model is now under pressure.
The multiplier has weakened considerably, falling from a peak of 4.1x to a projected 1.6x. This is contributing to a prolonged slowdown period for India IT exports. A primary factor in this slowdown is a clear shift in client spending priorities. While overall enterprise technology spending remains strong, clients are now allocating a larger portion of their budgets to core digital infrastructure, such as cloud platforms and SaaS platforms, over traditional IT services.
The firms are facing challenges on multiple fronts. Global corporations are increasingly establishing their own global capability centers in India, with projections indicating an accelerated pace of 120 new centers being added annually in fiscal years 2024 and 2025, up from some 40 six years ago. This insourcing trend diverts revenue from traditional IT vendors and creates direct competition for skilled technology talent.
The multiplier has weakened considerably, falling from a peak of 4.1x to a projected 1.6x. This is contributing to a prolonged slowdown period for India IT exports. A primary factor in this slowdown is a clear shift in client spending priorities. While overall enterprise technology spending remains strong, clients are now allocating a larger portion of their budgets to core digital infrastructure, such as cloud platforms and SaaS platforms, over traditional IT services.
The firms are facing challenges on multiple fronts. Global corporations are increasingly establishing their own global capability centers in India, with projections indicating an accelerated pace of 120 new centers being added annually in fiscal years 2024 and 2025, up from some 40 six years ago. This insourcing trend diverts revenue from traditional IT vendors and creates direct competition for skilled technology talent.
Oh my goodness!! (Score:5, Informative)
I used to work for Wipro. It was a weird place to work. "Intensity to win!!" What, whatever dudes, where's my paycheck?
It had a weird company benefit. They would pay to fly you from the US to India, including hotel and I think food too, to have certain medical procedures done.
When I announced my resignation, they paid me, full rate, to "sit on the bench" for 6 months while trying to get me to take another position.
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Oh yeah! You had to physically mail in receipts for travel. You couldn't just scan and upload them. That's how advanced that "world class IT company" was.
What a joke.
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To slice off the needful.
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You can pry my un-circumsized penis from my cold dead hands.
No wait, that sounds wrong. Oh well, it's out there - figuratively!
No really, WHAT procedures?
Re:Oh my goodness!! (Score:5, Interesting)
I don't remember specific procedures. I last worked there in 2013.
But as I think I remember, it was major medical type of stuff. Not anything weird or experimental or anything.
I think the basic idea was along the lines of "India has great doctors. We can save you (and us, the company) a lot of money if you come here for medical stuff, instead of having it done in the US". And that's probably all true.
I wouldn't be surprised if they somehow "got credit" for bringing that medical business into India too.
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Penis enlargment ?
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Oh my goodness!!!!
I lost my last job because TCS was FIRED by CSX. (Score:1)
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Using a "by the pound" bottom feeder for offshore contract labor is its own reward. Paying 20-30% of the unit cost of a qualified domestic employee generates a "savings" that's just a mirage. When you layer in poor execution, incompetence, and using anthill labor that nullifies the "cost advantage," the juice isn't worth the squeeze.
Section 174/174A makes tech outsourcing illegal (Score:1)
The new updates to section 174 and the differentiation between section 174 being domestic or American just completely changed that in the last few weeks, and made it completely illegal for us to offshore to India under the new Tax code, because now there's a 15 year tax related charge to doing that when you should just be hiring Americans to make the code because thats is what is required to make it legal under the new tax code if you want to deduct your expenses in the year you had them, otherwise you will
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Indiaâ(TM)s dominant position in global medic (Score:2)
Indiaâ(TM)s dominant position in global medical tourism by 2025 is the product of exceptional cost savings, high-caliber care, minimal wait times, robust government support, and a unique blend of ancient and contemporary healing arts. Westerners are drawn by affordability, experience, and technology, while Africans cite both cost and cultural familiarity. Strategic partnerships with Japanese firms like Toyota Tsusho and Secom are pushing standards even higher, particularly in super-specialty domains an
Not surprising. (Score:4, Interesting)
I've been in the software industry for a long, long time and the only good thing about Indian outsourcing that I've seen was its price. Everything else was horrific - quality, management, communication, support fees and accents.
I am not surprised they are in the shit now. Long overdue crash caused by the culture of not giving a fuck.
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I've been in the software industry for a long, long time and the only good thing about Indian outsourcing that I've seen was its price. Everything else was horrific - quality, management, communication, support fees and accents.
I am not surprised they are in the shit now. Long overdue crash caused by the culture of not giving a fuck.
It's not just the culture of not giving a fuck, it's the culture of passing the buck.
If the old Demotivator of "none of us are as dumb as all of us" is true, it's dealing with Indian outsourcing organisations. Whenever something goes wrong, and it goes wrong frequently enough that it's a well oiled procedure, you'll never be able to pin the responsibility on anyone. First they'll all start blaming other teams, then big meetings are called where everyone who can be involved is (more people speaking means
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Yeah, one can complain about stereotypes, but there are definitely "cultural issues" with Indian developers. Plain speaking and honesty don't seem to be that common, and as you say deflection of responsibility vs taking ownership is also common.
Ever notice how many sick days Indian developers take, or how often they have "laptop issues", etc ?! Of course there are power and internet outages, but a company laptop is a laptop ...
It's funny to hear Indian vendor management tell the team "I don't want anyone re
Skilled technology talent? Not in my experience (Score:3, Interesting)
I'm so happy for India (Score:1)