Tuesday, February 27, 2007

India: Innovation, Creativity and Products

John Hagel does a eloquent review of the state of talent and innovation in the Indian IT industry during his visit here. Some interesting comments are also available on the post. Without being bland or repetitive, I would add this 2cents of mine:

- I wonder if there can be any realistic chance of expecting a company who is focussed on serving the Indian customers (ICICI Bank for example as quoted by Hagel) being able to expand and streamline the service offering to scale operation in order to serve the US consumer. It all sounds good when we talk about the Bottom of the Pyramid (BOP) opportunities but I wonder if there are many examples to showcase how learnings from India and China have really given companies a leverage in the US marketplace in the way they service their customers other than saving on costs via outsourcing to a location with cheaper factors of production. BTW, I am sick of the pathetic service of ICICI Bank.

-Hagel's "Fostering talent networks" is definitely a good idea. It can also be considered an extension of Oliver WIlliamson's Transaction Cost Approach where the firms can leverage a shared marketplace resource for talent rather than internalise the operations to reduce uncertainity. However in the absence of any Government backing for such an outfit, the only practical way will be for Indian IT providers to have loose alliances among themselves to take on the world. Maybe the market pressure for talent will make such an allaince a reality. Lets see.

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