INDIA = Strategic Advantage * (Price + Innovation)
INDIA uniquely offers price advantage along with highly competent Product Innovation talent pool. Any organization can reap the benefits of the flat world if the off shoring activity is carried with a definitive strategy and understanding. Need more proof? Here are two news items from today, that explains both facets of India and its unique advantage.
Bloomberg reports IBM's Profit Gains 11% as India Expansion Trims Costs :
"International Business Machines Corp., the world's biggest computer-services provider, said second-quarter profit rose 11 percent after the company reduced expenses by shifting work to India."
Another report confirms India design firms as product innovators
"ATI is just one example of how Indian design organizations are moving beyond simple labor cost arbitrage to becoming true contributors to product innovation. In fact, this year a number of marquee brands have invested in new design operations in India or significantly expanded existing facilities. These companies include Agilent, Via, Dell, Rambus, Windriver, Wolfson, Austria Microsystems, Tensilica and Sandisk.
About 200 semiconductor companies currently operate a facility in India, and about 120 of those are into chip design (the remainder do software development).Â Frost & Sullivan estimates the total design market in India is $3.25 billion, with embedded software comprising 78 percent of that figure. The research company predicts that Indian design industry services will grow to $43 billion by 2015."
If your firm's offshore efforts to India did not succeed to your expectations, consider reading an excellent and objective analysis by Martin Folwer on "Using an Agile Software process with offshore Development".
"For the last four years ThoughtWorks has operated a lab in Bangalore India to support our software development projects in North America and Europe. Traditional approaches to offshore development are based on plan-driven methodologies, but we are very firmly in the agile camp. Here I discuss our experiences and lessons learned in doing offshore agile development. So far we've discovered that we can make it work, although the benefits are still open to debate."