India’s offshore-outsourcing power status could be toppled

Opinion
May 4, 20053 mins

* Leaders in other countries are likely working hard to promote their offshore potential

Sam Pitroda, former chief technology advisor to the Indian government and now chairman of World Tel, was interviewed last month by Stuart Varney on the popular Fox News daytime show, Your World. With a full head of silver hair and a black goatee, Pitroda’s presence was one of confidence about his knowledge of global business and enthusiasm for the future.

Pitroda was credited by Varney as being the “godfather” of Indian offshoring. Doubtless there were others that were involved in the architecture of today’s Indian offshoring powerhouse, but Pitroda was certainly one of the idea men.

World Tel, the firm that Patroda now heads, is a Canadian company providing commercial Internet services in the Pacific Rim, North America and Europe.

Pitroda is no slouch, possessing a Master’s degree in physics and electronics from the University of Baroda. His accomplishments include becoming the first chairman in 1989 of India’s Telecom Commission, responsible for all aspects of telecom legislation and development for the country.

Varney had some tough questions for Pitroda and wanted to know what the future looked like, especially with regard to outsourcing and offshoring.

Pitroda’s responses were common sense to anyone with a sound education in and knowledge of multinational business. Essentially, he had three things to say:

* Japan is good for electronics.

* China knows how to create and ship goods.

* Outsourcing to India is “simply a part of doing business.”

These are certainly true, and the India element can largely be attributable to Pitroda’s efforts in helping to promote the country as an excellent outsourcing choice.

However, there is a danger here that needs to be pointed out. Competition changes things. Underdogs that want a piece of the pie might work harder and longer in trying to achieve their goals.

Suppose, for example, that Vietnam wanted to be the prime location for technological companies to consider when outsourcing software development or engineering (some companies are already considering Vietnam). What would Vietnam have to do to overcome the Indian mystique? Work harder than their Indian counterparts? Develop more technology schools, focusing on engineering sciences? Build labs committed to fully understanding new technologies? Make English as a second language a requirement in all schools? Implement rigorous national quality assurance standards? Should Vietnam leaders travel the globe, presentation in hand, getting the word out?

What about electronics? Suppose that Algiers wanted to be the apex of electronics suppliers, completely outstripping the Japanese in their efforts? What would they have to do?

These things were undoubtedly questions Pitroda asked when he and others began the dialog about how to make India the first name on business leaders’ minds when the question of outsourcing came up. The point is that any country with enough will, with local business leaders, such as Pitroda, asking the right questions and committing the right resources, and with national leaders implementing the right programs, might be able to do the same things.

We cannot say for sure that India’s current top position in the outsourcing league will continue well into the future. This is the most interesting component of global business – we just don’t know for sure where the next big innovations will arise. Who will be the next Sam Pitroda and which country will this individual be championing?