Should we work as an outsourced employee to an American company?

[mayurpathak]

Me and my friend had a major argument on my blog regarding how can India be a super power in technology and innovations. My argument was we should be treated with respect by the likes of SAP, Microsoft and all. We need to work on core product development. So since we are not good enough (at this moment) to develop a FireFox or a Windows, lets go to these guys and urge then to set up their R&D centers in India. Who knows, we will come up with another product range of our own. I'm confident of our talent. However we need exposure and opportunity. So we should try to get core work outsourced to India.

My friend however had a different view. He thinks we are donkeys currently and we need a drastic change in attitude. Why beg for exposure to MS or Mozilla? Why cant we build our own Mozilla?

So CEans, I would like to know your views on how can we be a technology super power. Please quote material points, thing that are possible. Lets not live in a dream.

Go on.

[EDIT]
PS: The post is not India specific. This can mean to any one who works or has knowledge of the onsite-offshore scenario. I just need views about Off shoring.

[ash]

I thought theres already a Microsoft R&D center in India?

I tend to agree with your friend. Over the past few decades in Malaysia, for example, electronics make up the majority of the exports. A majority of these are produced by Multinational companies, with hardly any local innovative input. Only recently Intel had set up an R&D division here.

I doubt we should blame MNC's entirely. They had poured in billions of investments. We could blame ourselves for just sitting around though. Why not take advantage of their presence?

To have local innovations, you'd need to set up an environment to do so. Have incentives for local technology start ups, and allow them to grow in an incubator-like environment where they'll have access to equipment, infrastructure, close ties with local universities, etc. Cooperation (like research) with MNC's will also benefit a lot. This is what is happening now in Malaysia. Still a while to go, but we are getting there

[mayurpathak]

Yes they do have centers, but they are not exactly R&D centers. Moreover my concern is, most talented people leave our country to migrate to US because they think they have a a better opportunity there. However if its the same companies who have offices here in India too... then why not work in India?

Majority of the companies have only support centers or low cost development centers here in India. I wish to change that. Although I believe no work is of less priority, branding some one that way is incorrect.

[The_Big_K]

Originally Posted by mayurpathak

However if its the same companies who have offices here in India too... then why not work in India?

To the best of my imagination - its about the mentality. I've seen people who show their daughter/son's photograph in front of Niagara Falls to everyone who visits their home. A photograph in front of Niagara Falls is an indication of how well their offspring is doing.

But its not about the job only. High standard of living, fast access to emergency services, better education (?) etc. come into picture. I believe discussion about these is out of scope of this debate.

Outsourcing is okay. As long as there are people who are willing to do the work for cheaper rates - it makes perfect sense to any company to outsource. Mind well, its more than 50% cost cutting. Its all about money, honey

[koli]

Originally Posted by mayurpathak

Yes they do have centers, but they are not exactly R&D centers. Moreover my concern is, most talented people leave our country to migrate to US because they think they have a a better opportunity there. However if its the same companies who have offices here in India too... then why not work in India?

Majority of the companies have only support centers or low cost development centers here in India. I wish to change that. Although I believe no work is of less priority, branding some one that way is incorrect.

I like this topic.
1 - returning Indians, after working for years in US and many other developing countries, I have returned to India. There are many folks who i see are coming back since last 3-4 years for the same reason that these US based companies have centers in India and other low cost operating centers.

2 - outsourcing was always there in almost everywhere. The name "outsourcing" is more known in ofshoring in IT and BPO. But if you really look at normal life style we do outsource our day to day work for many reasons. example - household cleaning (kaam wali bai), Getting milk from shop (doodhwala), Driving your own car (driver), Doctor, Lawyer,carpenter, etc..etc. Dont we ?
So it is not all about money, but also about affordability, skills and time.

3 - Innovations - After working for product companies and outsourcing companies, i see that many IT innovations are actually initiated or derived from Indian / Asian brains. But due to missing ingredients it doesnt come to limelight and hence the general perception is different.

The missing ingredients is team work, focus, persistence, methodology, leadership and biggest is marketing (inside organization as well as external). I think if India (or any country) concentrates on these missing items, it can change the perceptions.

[The_Big_K]

Originally Posted by koli

3 - Innovations - After working for product companies and outsourcing companies, i see that many IT innovations are actually initiated or derived from Indian / Asian brains. But due to missing ingredients it doesnt come to limelight and hence the general perception is different.

Koli, you've been there done that. Probably you're the best one to answer this -

As you mentioned above, most of the IT innovations are actually initiated or derived from Asian brains. Why aren't those innovations happening in Asia? (I know there are lot of innovations happening in Asia, but 'generally speaking'...)

[koli]

What i meant in my response that most innovations are actually initiated by Asians (including Indians) be it onsite or offshore. But due to marketing, leadership and other factors, those doesnot come to forefront. That is the biggest advantage many big MNCs have and those companies are smart to acquire these innovations by whatever means (either by hiring or inducting the person who is innovating it, or hiring / buying the companies who are innovating it or by whatever other means)

While saying this, i dont discredit many innovations which are actually innovated by these MNCs. Also the other reason is the environment supporting innovations which is also a big plus for MNCs and people working there.

Story time:
Many of you may know the Japanese story about a brainstorming forum where the topic was about wheels of vehicles. One kid comes and asks "why all wheels are round in shape, why cant you have square wheels"
The boy could be ridiculed and ignored, but instead his question was noted and persistently followed through research. Apparently that lead to the research of magnetic wheels (square shaped) and bullet trains.

[The_Big_K]

Maybe the following article will give this debate a new direction: -

Microsoft/FaceBook/Google from India? Can Indian Society produce Gates/Larry/Zuckerburg? |Technology and Business Startups in India