Tuesday, March 04, 2008

Outsourcing: Part II

This is an interesting article about the state of outsourcing in India.

Yet, India, for all its glory, is still the world’s back office. India's tech industry is a "services" industry. The Indians don’t do the thinking. The customers do. India executes.

As a result, India has not learned to invent technology products of its own. Barring a few exceptions, the huge amount of venture capital chasing India finds it difficult to be deployed. There is way too much money, way too few deals. Instead, tech-sector VCs are now diverting capital to retail, real estate, hotels and other non-tech sectors.

Out of the millions of folks in India, it's still a small percentage that are in IT or Technology. Until India begins to 'outsource' to itself and discover it's own consumer base, it will always be a back office.

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