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Let’s forget bellwethers, focus on bottom lines!

IndiaTechOnline Opinion: Time to forget this ‘bellwether’ game , focus on the core message: Indian IT players continue to deliver value, show profit in difficult times.

Bangalore, July 13 2012: The coincidence of two of India’s top Infotech outsourced service providers – Infosys and TCS – both declaring their quarterly balance sheets on the same day, yesterday, gave the media a chance it couldn’t miss: to make gleeful comparisons, and concoct headlines like: Infosys disappoints, TCS sparkles ( Hindu Businessline); TCS balm after Infosys pain ( Business Standard) and IT’s over for Infosys: TCS is the new bellwether ( Economic Times).
Let’s look at the actual numbers that triggered these simplistic gloom-versus-glee judgments:

1. Infosys reported a profit of Rs 22.9 billion in the last quarter. TCS posted a profit of Rs 32.8 billion.
2. Infosys revenues rose 28.5 % to Rs 96.2 billion. TCS revenues grew 38% to Rs 149 billion
3. Infosys added 51 clients in the quarter ending June 30, and 1157 employees. TCS added 29 clients and 4962 staff. 

To us at IndiaTechOnline,  this does not look like the stuff of dramatic rise or fall, of so-called bellwethers toppling or rising.
So why the drama, the drum beats and the doldrums? NASSCOM, the Indian software industry body suggested that the business would grow at between 11 and 14 percent. TCS thinks it can do even better based on its book on June 30. Infosys is more cautious and expects to grow at around 5%.

This is hardly surprising: TCS is the larger company, with a wider spread of offerings. Infosys has traditionally concentrated most of its efforts in the highly competitive outsourced IT services business in the US and to a limited extent in Europe – so it is more affected when the economies in these geographies slow down. But let’s concentrate on the larger message rather than seeing a baton change in a relay race that no one is running. The message is this: Temporary, and short term glitches notwithstanding, the Indian IT services industry continues to hold its own and collectively offers a global customer base, a Godfather-like offer-it-can’t-refuse: world-class, quality services at attractive prices. 
There is competition – all innovative business ideas, will attract imitators -- but nothing in the fine print of Thursday’s balance sheets at two of our biggest ( and let’s remind everyone—most respected) IT providers suggests, that any big rise or fall is imminent. 
In  striking contrast to the doubts about sane economic and industrial policy at the national government level, India’s privately-led infotech industry continues to deliver quality and service to the world, even if the rewards might be less than expected – or deserved. Keep it IT up  guys, you are doing India proud – ALL of you!  - Anand Parthasarathy


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Let’s forget bellwethers, focus on bottom lines!
by Mido on July  26,  2012
  "Hi Basab, I am a direct/indirect vitcim of the model presented here. I work with one of the companies that post gravity defying growth figures and inside that, the unit I am with, has lil more than gravity that was pushed back to achieve growth and the targets for the coming years as you know are always higher Problem: Average age of Project Managers Issues: Learnability is low Focus on process/quality is very low Expect faster growth & Pay packets Strong tech expertise/Less Management Skills Communication Issues Language/Articulation skills Results in > Attrition Voluntary in nature Leadership Average Project Manager is today not efficient, might be result oriented.. Low quality product/delivery Also growth has resulted in people who are not PM's doing PM Activites in 70% of the cases.. Would Love to quote what happened today.. I walked into the room of a Senior Project Manager to talk about few Quality related issues.. Hey, I am not worried about the training program, tell me how can I get over it and you be happy, let me be happy.. These are my personal experiences and opinions"
Let’s forget bellwethers, focus on bottom lines!
by Akash on July  28,  2012
  "Some are saying that leasredhip has to own it not HR? Is HR not in leasredhip roles? shame,shame if not. But I get it is some cases I guess that is the practical reality.Lesson here is about ownership up to the tippy top point of your control. In somecases the tippy top may not be mount everest but only you can sleep at night knowing what you did or did not do from an HR standpoint.To KDs article I do agree with his statement in the context he puts it in. I personally do not give a s**t what people are doing at home. However, in the Sheen context, the actors context, work and life decisions intertwine. Actors use personal life decisions to promote projects they are working on (the old no press is bad press).In that case work and life decisions are not mutually exclusive and I see employers having a little more rope to pull."
Let’s forget bellwethers, focus on bottom lines!
by Yuri on July  28,  2012
  "Assuming that the Indian IT Services industry kkiced off in 1995, the billable range extends upto 10 years atleast. This will increase everyone year. The % of non-billables is best esttimated as a fraction of total it has nothing to do with years of experience. As the industry ages, the average age of each role increases.So, Basab, if you upload this excel again, please have 2 tabs5 to 10 years, and 10 to 15 years. The current ones are too close to each other anyways."