The IT world stage takes another turn

Globalisation is rapidly changing the shape of the IT world

There are few things that frustrate the leading Indian IT software and services companies more than being described as Indian. The likes of TCS, Wipro and Infosys want to be seen as international suppliers, not be defined by their country of origin. After all, how often is IBM described as a US technology company?

The desire to be a global force is understandable and realistic – but equally, the Indian (sorry) firms are being affected by their growing international nature.

Last week, one of the world’s largest private equity groups, Apax Partners, was reported in The Times to be talking to Patni, one of the longest-established providers from the subcontinent. And TCS announced plans to outsource 5,000 jobs to Mexico. Yes, that’s right – an Indian outsourcer offshoring its staff. TCS blames wage inflation at home and the rupee’s surge against the dollar; Mexico offers a low-cost environment for supplying the firm’s US customers.

Offshore providers in Eastern Europe, the Far East and South Africa are becoming increasingly viable options for Western firms as they develop greater expertise and skills.

Of course, many of the development centres in these emerging economies are owned and operated by the Indian outsourcers. But don’t forget that the fastest-growing employers in the Indian IT industry are the big US and European companies such as IBM, SAP and Microsoft.

Meanwhile, Computing reported last week that Chinese and Indian venture capital investment in new technology is expected to outstrip Europe by 2011. The UK has often been criticised for not showing enough faith in its IT startups – soon it might be India or China it turns to.

It is remarkable how quickly the Indian effect has revolutionised the shape of the IT industry. Even five years ago, outsourcing to India was hugely controversial, with national newspaper front pages decrying the latest call centre to move its operations overseas.

Today, offshore IT professionals have practically eliminated the skills shortage for basic technical skills, such as programming, support or maintenance. If you can’t employ enough techies, just buy them in from India or elsewhere.

The Indian firms deserve their place on the world stage, but now the challenges they face are similar to their Western competitors – a sign of their globalised nature.

For IT managers, the world is a stage from which you can choose the very best players.