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It’s
homecoming time for Indian IT pros
Indian IT
companies should aggressively recruit US-based professionals who are
disillusioned by the whimsical ways of corporate America, writes Mohan Babu
The strength of
Indian IT industry has been our people - teeming hundreds of thousands of
qualified programmers, software engineers, designers and analysts that we
unleashed on the global community. During boom-time, not so long ago, many of
them joined the HTNRI (hi-tech non-resident Indian) brigade. The timing is
perhaps right for us to welcome them back into the fold.
Articles on
Indian IT industry, especially ones that talk about the strategic direction,
generally end up harping on the lack of ability of Indians to move up the value
chain. This is a favorite topic for authors, senior professionals and thinkers.
The fact is, in spite of all attempts, decades after we emerged on to the global
IT scene, Indian hi-tech giants haven’t been able to move up the value chain.
Solution to this problem, which would guide Indian IT companies, seems to be
elusive. The slowdown in the west has muddied the water further, leaving
everyone in a reactionary mode.
The
problem...
The US
economy is reeling under a slowdown. Greenspan (the revered US federal bank
chairman), who wanted to put the brakes on an irrationally exuberant economy,
managed to crash-land it. Reacting to this slowdown, US managers are wielding
the ‘layoff-axe’. Cost cutting has become the new mantra, with all but the most
essential IT spending, taking a hit. This slowdown is sending ripples around the
globe. The future strategy of Indian IT industry — that depends on US for over
60 percent its business — looks murky.
Indian software
industry, which had got used to enjoying double (even triple) digit growth
rates, is getting a jolt of reality. An industry that was content to match an
abundant supply of qualified technicians with an insatiable demand from the
global market,
is seeing the ground shift beneath. Many of our companies that went to the
international stock markets for financing and recognition are having to explain
a slowdown, that they themselves are finding hard to fathom, to their global
investors.
Most young
executives who came on the scene riding on a wave of decades long growth are
finding themselves at sea. Even software giants like Wipro, Infosys, Satyam, TCS
et al, sitting on piles of cash, are hesitant to extrapolate a strategy that
would help them see through the maze. Needless to say, in their quest to stay
afloat, these companies seem to have shelved plans to move up the global value
chain. At least for now.
Indian software
companies are not alone in this downturn. Another group that is equally hard-hit
is the high-tech NRI (Non Resident Indian) community, whom I shall call HTNRIs.
Most HTNRIs across the globe have a similar background — middle-class, born and
educated in India. Chances are, they joined an Indian consulting house for a few
years, before migrating to the US, UK, Canada, Singapore and other corners of
the globe. It would not be presumptuous on my part to say that they were
suckered into becoming HTNRIs by simple demand-and-supply economics; and,
although most of them knew that the risks-and-rewards go hand in hand, they seem
to be recoiling to the change in market conditions like a deer caught in a
headlight. Many are experiencing, perhaps for the first time, the affects of
losing a job along with the uncertainty of having to start afresh. They are
taking a hard look at their lives and careers, and are looking for the light at
the end of the tunnel.
Instead of trying
to look at the silver lining and preparing for the next wave, both sides of the
camp — Indian companies and HTNRIs — seem to be content to throw up their hands
in the air. Reminds one of Indian farmers waiting for monsoon?
I would be
preaching to the choir if I were to reiterate the basic law of economics and
stock market — what goes down would go up. Brings us to the question, should the
Indian IT industry be huddled in a reactionary mode? Shouldn’t we be proactive?
The solution
The reaction to this slump will determine our growth trajectory. Indian IT
companies should not only position themselves to emerge successfully from the
slump but should be in a position to move up the value chain. While the global
community is reacting to the slowdown, we should be building on our strengths.
The strength of Indian IT has been our people — teeming hundreds of thousands of
qualified programmers, software engineers, designers and analysts that we
unleashed on the global community. During boomtime, not so long ago, many of
them joined the HTNRI brigade. The timing is perhaps right for us to welcome
them back into the fold.
Aggressively
recruiting HTNRIs during this downturn may be one of the best strategic moves
that Indian IT houses could make. HTNRIs, who are increasingly growing
disillusioned by the whimsical ways of corporate America (or UK or Singapore...)
may be open to reviewing their career trajectory, not because of any patriotic
fervour but because of growth opportunities that could ensue. A win-win
proposition if there was one.
Going global
thinking Indian
Many, if not most HTNRIs who are permanent residents of US or UK and other
countries still have strong ties with India, and probably started their careers
working for Indian software houses. Indian work and corporate culture is not
foreign to them. Along with an exposure to the workings of complex IT systems,
many of them have had an opportunity to build strong business knowledge,
managing and leading teams working on complex systems, solving the needs of
their business users. They have also been moving up the corporate ladders.
HTNRIs are as comfortable working with their Indian peers as they are with their
native hosts. Having made their share of cultural faux paus, they are
comfortable in a cross-cultural environment. Just the kind of people that Indian
IT industry needs in its endeavour to move up the value chain.
Recruiting HTNRIs
may not be as easy as it sounds. These professionals, living abroad have
probably got used to the western standard of living and will not come cheap.
They may be reeling under recession but will be unwilling to chuck it all and
sign up for a few rupees more. The mindset of some Indian executives who were
content to build their corporate cultures around “enslaving” employees with
bonds and golden handcuffs will have to give way to more modern management
practices. Of course seasoned executives who can see the forest for the trees
and build strategies around these issues will come ahead of the curve.
The ‘old boy’
(and sometimes girl) network among HTNRIs is still strong and could act as a
powerful conduit. Case in point, my company — Indus Demographics LLC — that
studies NRI trends in the US, decided to conduct a straw poll by publishing an
e-mail calling for Indians on work visa’s who were recently laid off by US
corporations. In a matter of days, with merely the word-of-mouth behind us, we
were able to amass a database of dozens of Indians. Needless to say, a focused
recruitment drive would do wonders.
Indian IT needs
to evolve to where it wants to be and the timing is right for us to start
planning for our future. At this point, we do not need a disruptive revolution
but a strategic evolution. If even a few Indian IT giants start building their
strategies to move up the value chain, they will be miles ahead of any global
competition when (not if) the cloud of slowdown lifts. Any takers?
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