October 13, 2005

 

Boast factor

As usual, the pink paper goes overboard in its headline - "Desi IT majors outscore global giants". Mr. Nilekani, CEO, Infosys said
“The much superior quality of our service and our global delivery model have created enormous pressure on legacy players,”
The pink paper interprets as "INDIAN software service providers are head-to-head against legacy IT majors such as IBM and Accenture and there is a major transitional change happening at the market place".

OK. Tell me more how they are doing it. The article fails miserably on this count. It just throws the numbers from the press release. Damn to the headline, we are like this only.

Yes, the Indian IT industry has come a long way. Infosys took 24 years to reach US$1 billion in revenues. They will take just 24 months to hit US$ 2 billion mark. It is something which deserves respect and admiration. But, let's take a look at the global IT giant mentioned in the article.

IBM earned US$12.0 billion in the Second Quarter of 2005 from services - the arena where they compete with Infosys, TCS, Wipro. To put it in perspective, revenue of IBM in a single quarter is twice the annual revenue of Infosys, TCS, Wipro put together. Let me also mention that while Indian companies are logging 20-30% jump in the revenues per annum, growth for IBM is in single digit.

Indian IT giants have a long way to go, before we can truly say, "We've arrived."

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