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Indian IT consultancies struggle against technological obsolescence

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Re: Indian IT consultancies struggle against technological obsolescence

#241
post #88

Earlier quoted context omitted.

You see this everywhere in the world. I've worked with a huge number of Americans who went to school for anything but computing, would rather be doing anything but computing, but realized that a six-week crash course in web development would literally quadruple their salary. Many of them go on to embrace computing, many of them turn out to be good developers, and some even become passionate, but they all start out by…

Difference is, a lot of these people wouldn't get jobs as junior devs in the west, and if they did, there just wouldn't be so many "natural" opportunities to move into management. Whereas in India, the big outsourcing firms need such a large quantity of people every year, that thousands upon thousands are hired and placed in junior dev or test roles. And because these orgs are so large, there are many layers of middl…

I don't think this is true at all. The tech bubble in the West is huge and claiming junior devs in the West are anywhere less afflicted by the rat race syndrome than India is outrageously false.

Re: Indian IT consultancies struggle against technological obsolescence

#242

To set context, I'm Indian. I used to work for Razorfish for about 2 years, working with our counterparts in London, Austin, and San Francisco. I ended up building a team of 50-odd Products Designers and Front-end Engineers in about a years time. So, We used to work with lots of "engineers" from well-known other Indian Outsourcing firms. Here are few anecdotes; Even amongst themselves, they don't respect each other i…

OK So this sending zip files doesn't just happen in Indian IT companies, it happens in IBM India aswell, a friend of mine tells me how she sends her code in email or use some dropbox like service. These dinosaurs are quite antiquated because of the head of something something BS manager prefers zip over git. In other instances they dont get a testing server for months and then she has to navigate the buereucracy writing emails to get access to some proprietary database or OS.

Re: Indian IT consultancies struggle against technological obsolescence

#243

Earlier quoted context omitted.

if one is looking for $10-20 hourly developer, certainly the result will likely be what you've experienced. Big IT Indian firms usually will choose one or two highly talented developers for a project team and others just hop around them. Usually these projects aren't also very engineering-intensive and becomes boring once the base framework is created for creative folks. Good devs don't stay longer in a company at le…

When developing nations that are primarily known for their cheap products start creating competitive high quality products what happens is that they start charging just as much as every other developed nation. That same dynamic plays out with Indian software developers. If they can deliver X amount of value they can also charge X for their service. This means if you hire an Indian for $10 an hour you're going to get…

India has quite a way to go to break that boundary. The IT industry in India is basically a giant demonstration of the Dead Sea effect. The most talented engineers from India have been leaving the country in droves for decades. The local industry has a deservedly terrible reputation, which motivates more local talent to leave, further degrading the local labor market, which further incentivises people to leave...

I think the most promising signs for the local industry is that it’s starting to produce some rather successful home grown startups. Which are much more likely to attract local talent than the outsourcing body shops are.

Re: Indian IT consultancies struggle against technological obsolescence

#244

TLDR of the article is American / European companies creating in-house Indian offices and moving away from "consultancies". I whole heartedly agree to the huge advantages you get doing this. You have better control over hiring quality talent, more focused developers who develop institutional knowledge over time, much easier to scale up/down than the contracts with these consultancies and so on..... Outside IT, I can…

Being a part of one of these, I agree most companies have realised have a dedicated offshore team is much better than assigning work via third party consultancies.

If anyone is struggling to hire in their local market definitely try to get in touch with talented people offshore and see if they can bootstrap a small development team to help your business.

Also it's not always about cost cutting, sometimes businesses struggle to find developers working on their technology platforms or just lack the pull to attract local talent. In these cases if you invest in an offshore team and help them learn about your business needs it will pay off in the long run.

Re: Indian IT consultancies struggle against technological obsolescence

#245
post #73

Earlier quoted context omitted.

"As an Indian"

You can be Indian and still be wrong about aspects of your country. In GPs case, he was generalizing too much about Indian universities.

Staggering over-generalization

Re: Indian IT consultancies struggle against technological obsolescence

#246

I have a team of 14 engineers in Pakistan. It wasn't always easy to do this and now I always feel at odds with hiring where everyone else is hiring or paying a premium for a western passport developer when I know I can get killer talent elsewhere. I feel the talent we have now has the ability to crush, kill, and destroy the talent in Silicon Valley "engineers" at a fraction of the price in terms of output to input ra…

Kumar, how do you manage time-zone differences? I understand that for day-to-day updates, you either need to delegate to someone onsite or have one of you work at odd hours to communicate with your team. If time-zone issues can be fixed, I think the geographical cost arbitrage will become much easier to exploit in the coming years.

Re: Indian IT consultancies struggle against technological obsolescence

#247
post #8
post #5

I recently joined a company where my main task is to modernise a business critical application built and supported by Wipro over ten years ago. Everything is still on .Net 3.0 (first released in 2007), and despite hundreds of pages of documentation the developers seem to have little understanding of what the application actually does for the business. The impression I have is that their business model is geared towar…

The truest saying in software is that the highest value output of a project is an engineering team that understands your business. Past a certain point of size/complexity you can't buy one of those for any price, you have to make it. Outsourcing turns an investment opportunity into an expense.

I can’t remember where I read it, but I was reading an article about a company’s experience with outsourcing. One quote stood out.

“We outsourced all the profit, but none of the risk”

Re: Indian IT consultancies struggle against technological obsolescence

#248

I believe there is a bias towards the outsourcing, at least judging by the comments. Let me tell you my side of the story. We are a software development company based in Macedonia - Emit Knowledge From personal experience, we've refactored/rewritten code that was developed by development teams from USA, Canada, Sweden, Denmark, UK where the hourly rate is sky high compared to ours. According to me the problem is not…

> The difference is in the culture. As a CEO I would like my client's business to succeed so we can work together as partners, long terms, instead of getting money from CRs and playing "you haven't specified this".

I think this is the part that's most important and similar to how orgs like RedHat operate.

Re: Indian IT consultancies struggle against technological obsolescence

#249
post #117

Earlier quoted context omitted.

20 USD/hour is not what developer earns, but what you pay for developer time. Overhead (buildings, managers, computers, toilet paper), sales commissions, taxes, and off time and eats big big part of that money.

I've seen rate cards for quite a few bpo providers and major it body shops, and unless it's like an extreme case (Chennai and one or two other cities), the devs are getting slightly less than 10% of their billed rate, the rest being overhead. Hell, I look at the delta between what my firm bills me out for and what I take home, and it's about 12% of my fully loaded day rate.

I've seen two type of compensation schemes during my agency years: ~60% take home, but zero during my downtime and around ~15% when I was salaried developer, which make sense as utilization of around 60% was expected.

Re: Indian IT consultancies struggle against technological obsolescence

#250

Earlier quoted context omitted.

You have great ideas on Twitter! Your website doesn't show any specific projects you've done, and I totally understand client NDAs, but is there anything you can share to help understand your perspective and experience? I'm genuinely curious and not trying to call you out, you seem brilliant and your team sounds like it, but it's hard to verify because there's no public projects from what I can see on your website or…

Financial institutions, hedge funds, family offices, and PE all have restrictive NDA's. The blog will be updated at some point, I'm just busy.

Gotcha, I guess it remains a mystery, a lot of hype and no examples!
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