Thursday, November 11, 2004

Fwd: india's dwindling IT advantage

Nov 12

As Mark Twain would have said, "the rumors of my death are
exaggerated". I don't think India's advantages are going to go away
all that quickly. If demand declines, wages will fall, too: there is
no reason salaries will continue to climb at 15%. Besides, the US
dollar plummeting will affect not only India but also all other
competing nations.

http://www.optimizemag.com/article/showArticle.jhtml?articleId=46800188

3 comments:

deepa said...

Isn't it too risky for a whole industry in a country to depend on foreign market(s)? Also, shouldnt indian IT companies start creating / or looking for a market in India?

I agree with the fact, that the domestic market would neither be as revenue bearing nor be as profitable as these American / European markets. But, there should be a way out of this, isnt it?

Also check out, http://in.rediff.com/money/2004/mar/03guest1.htm

Anonymous said...

the whole base seems to be a demand supply gap. on a lighter note, id say that this is not gonna be a problem! as the demand for the IT professionals go up, am sure the indians (adept at these kinda things) would be more than smart, and see a business advantage in education process, and start more engineering colleges or who knows, IT colleges maybe!! there was a spree of demand for banking jobs some time back, and now it is the turn of IT jobs. good for india. atleast for sure till 2007 ;-)!

nizhal yoddha said...

deepa, i dont think it is okay to depend on foreign markets. this is how japan, korea, taiwan, and now china are all progressing as export led countries. but at some stage, this has to turn around, and the local market has to become bigger. india's local market is in fact getting bigger. as purchasing power increases, the local market will become more and more significant.