India is no more a preferred place for IT MNCs

[agentperry]

Microsoft India Chairman Bhaskar Pramanik, on Thursday, said India was "no longer the preferred destination" for IT multinationals (MNCs) due to a host of problems. While, he did not come clear on the problems that IT companies or MNCs were facing in terms of investments or operations, he said that "other countries" were doing "better" than India.

"India is no longer the preferred destination for MNCs (technology MNCs). People are cautious about investments. There are a host of challenges. The government has to talk about and address these," Mr. Pramanik told reporters on the sidelines of the Infocom Summit here.

According to Mr. Pramanik other countries were doing better (than India) but he refused to be drawn into names of countries which he was referring to or the exact nature of challenges that the industry was facing in India.

"Other countries are doing better on multiple counts," he said when prodded further.

Calling the move to put on hold the decision to relax FDI norms in retail as "disappointing" and "regressive", Mr. Pramanik said that there was a need for more investments in the country.

"Whether this investment is coming locally or from outside, it doesn't really matter. My belief is that FDI in any form is good. We have a corporate sector which is entrepreneurial and the State governments are savvy. We will be able to put in place all the checks that are needed", he said.


The Hindu : Today's Paper / BUSINESS : 'India is no more a preferred place for IT MNCs'

 

[amitkriit]

Several Indian companies have changed their game-plan, they are no longer in the business of numbers/head-counts. We are moving up the value chain, and these MNCs are finding it hard to compete with us. What they really want is monopoly and preference in large projects which are going in the hands of Indian IT firms.

India is now a sufficiently big market for Hi-tech companies, and our desi companies are more than capable of sustaining our growth story in the service sector. We will slowly witness the shift of low-grade businesses like Call Centers to other countries, because salaries have increased. Even the Indian companies will soon build support centers in foreign locations, keeping the serious works inside India.

 

[agentperry]

Several Indian companies have changed their game-plan, they are no longer in the business of numbers/head-counts. We are moving up the value chain, and these MNCs are finding it hard to compete with us. What they really want is monopoly and preference in large projects which are going in the hands of Indian IT firms.

India is now a sufficiently big market for Hi-tech companies, and our desi companies are more than capable of sustaining our growth story in the service sector. We will slowly witness the shift of low-grade businesses like Call Centers to other countries, because salaries have increased, so have the ways of doing business. Even the Indian companies will soon build support centers in foreign locations, keeping the serious works inside India.

what are you trying to say? IT, automobile industry etc are kirana store that a big player steps in and they go away like rats flee when cat comes in.
Indian IT companies are surely getting bigger but what they had pointed out even 3 years back is not rectified till now. narayan murthi had openly said that iit produce junk, dont even think of rest of junkie colleges having good positions in RENT A POSITION chart by india today or outlook.
how microsoft is threatened by Infosys? is infosys out with something to compete with window 7? no
infosys and tcs are highly profession companies into what we may call the capital goods industry of IT and ITes. there growth are good but when you compare the revenue the outreach and the scale at which they play, elephant and fat dorky kid, thats it.

 

[nrj]

New cheap cost destinations are groomed to cut running cost paid on infra, labor, tax. Countries for example Philipines offer the same at cheap price which will allow these MNCs to maximize profit margins.

Face it, less developed countries will always cost less in operation delivery. So the reason why Reebok prefers Indonesia & BPOwalas moving to east asian countries.

Now its time for IT MNCs. Wouldnt be surprised if Indian IT companies also move out looking for place demanding less tax & employees happy with peanuts compared to others.

 

[Naren1987]

We also need a change in work culture, when it comes to quality of work produced, TCS is just a little bit better than the public sector.
We need to deliver software without bugs, hope the guys at TCS are listening.