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Infosys Ltd. Message Board

  • outsource_this_2005 outsource_this_2005 Sep 3, 2005 1:49 PM Flag

    I laugh at how INFY announced ABN deal

    Infy announced the deal as though they are the lead vendor. They are not.

    TCS announced the deal separately as though they are the lead vendor. They are not.

    Both MADE CERTAIN that we understood the ABN Amro deal is the biggest single contract with TCS or INFY have ever won. Are we supposed to care?

    The fact of the matter is IBM is the lead vendor (by FAR) and INFY and TCS are merely picking up the crumbs. And don't forget Accenture and Patni; they are in there as well.

    What INFY and TCS are trying to desparately to hide is this ... the actual numbers:

    http://www.infoworld.com/article/05/09/01/HNibmwinsoutsourcing_1.html

    "ABN is committed to pay IBM �1.5 billion, TCS �200 million and Infosys �100 million over the five-year life of the deal, according to company spokesman Sierk Nawijn. The bank has not yet committed to application development spending, he said." Take a wild guess who will be getting that work.

    I'm told the Dutch were not thrilled when the Indian majors hurriedly called press conferences and issued press releases touting themselves as leaders in the deal, when in fact they are not.

    Indian press also mischaracterised the deal as a "TCS Infosys" deal, when in fact IBM is taking the largest share of the contract by far. IBM's share of this contract is nearly FOUR TIMES the TCS and INFY share combined.

    These antics make the Indian firms look desparate. They will not become world-class firms until they start acting the part.

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    • ghosysun: Its fortunate that the birth rate in India is quite steady. The World bank predicts a never ending stream of talent and lower prices due to this competition.

      Open source may further add fuel to that competition.

    • My dear friend if you read my message I said the cost of on shore work will become competitive not the salaries themselves. Salaries are only one component of the total costs of a project. Because of the overheas added due to extra coordination and trave and meetings required with an offshore project the current effective cost advantage of getting a project done in India is only 30% out of which 25% is because of a tax loophole which allows companies to not pay tax on work done offshore for upto 10 years. As salaries in India rise and this loophole is going to be closed by congress this year the costs will definitely be competitive. When the cost difference is down to 10% most non MNC American companies would go for the peace of mind of outsourcing onshore rather than offshore. As I am a software engineer in the US there would be noone happier than me if what you say is true and we keep getting paid 3 times what people in India are getting paid but that situation is not going to last long. See the problem is even India doesnt have an endless source of qualified techies. Sure the Andhra, Karnataka and Maharashtra colleges can pass out so called engineers by the bushels but not many of them are world class. it is really funny how the proponents of the outsourcing boom keep insisting it is going to go on forever. That is simply not possible as the people in the US will be forced to drop their rates and the people in India actually qualified to do the job(IIT ,REC,DCE and other tier 1 and tier 2 college passouts) are going to demand more pay. Sure Indian companies will continue to do work for American clients but thats because they can do the work better and not because they can do it cheaper. And believe me when it comes to recruitment Infosys scrapes the bottom of the barrel. Most computer engineers in top rank companies dont even attend the orientation sessions when Infosys comes to campus. Infosys gets mostly civil and mechanical engineers and then spends a year training them before they are really productive. This is a model which cant last when the difference in salaries comes down to 30% with American salaries.

    • You are naive to think that IT workers in US will get paid the same as outsourcing to India. That is REALLY FUNNY. LOL.

      The outsourcing worker will continue to be 30% of US worker for wages.....

      and outsourcing to India will continue big time unabated.

    • If u believe that contracts are decided based on bad feelings caused by press conferences u r really naive. As for geographic derisking it means they are able to shift more of their people away from US projects which is not such a bad deal given the state of the US economy. Its pretty bad out here as Bush has spent whatever surplus this country had in Iraq and now that the economy is tanking due to the hurricanes he doesnt have any flexibility to pump prime the economy. Real wages for IT professionals are falling and soon will be competitive with outsourcing so its not a good idea to expect a lot of outsourcing from US to continue

    • Not all well, this will show the cheap mentality of you. First you learn behave professionaly before talking anything on kannadigas. If you are a infosys employee, this shows clearly that how infosys managers pulled in unprofessional people form other states.

    • Well, in the first place I wanted to thrash kannadigas, if I do so then some one will come and defend it. So, I thought let me work the other way.
      B'cos being in trade market for past 3 years , I know the tendency of message boards, for every new message that is posted in favour of something there will be 100 messages that will throw shit at it and I'm having fun reading all these angry posts:-)))

    • Are you sure that it is at Infosys?. I'm asking because I haven't been there in 10 years. Initially when I saw the picture, it brought back memories of seeing that same thing in the early 80's as there was a slaughter house in the vicinity. Great!.

      Go Bangalore!! (bleat bleat :-).

    • Govt offers peanuts, self-serving IT monkeys grab it.

      Highlights of the presentation made by chief minister�s principal secretary S V Ranganath
      The Times of India

      PROJECTS COMPLETED

      Three-level grade separator at Dairy Circle constructed by BDA and commissioned at a cost of Rs 20.11 crore; Jayadeva flyover commissioned in February; National College flyover commissioned recently .

      Underpasses at Rajajinagar Entrance and Modi Road ready for launch.

      Road overbridge and road underbridge at Lingarajpuram, Frazer Town, Banaswadi commissioned; those at Nehrunagar and Cantonment will be ready by October.

      60% of 1,000-km of roads asphalted.

      UNDER IMPLEMENTATION

      Rs 34.9-crore Airport Road flyover to be completed by August 2006; Rs 20.12-crore flyover near Jayadeva Hospital to be commissioned by June 2006; Ananda Rao Circle flyover to be commissioned by year end.

      For Hi-tech City, 997 acres to be acquired; 102 writ petitions filed in the HC. To be decided after appeal in Arkavathy Layout is cleared.

      Magadi Road-Mysore Road ORR � May 2006.

    • Bangalore : Road Crossing at Infosys

      photos1.blogger.com/blogger/7112/1507/1600/thgoat.jpg

    • Well, when I was there in 83, recruitment was purely for IIT campus people specifically IIT Madras and I was not from IIT. So we were in operation and totally about 40 people. In order to get loans from Karnataka state Investment Finance Corp, he was then pressured into taking people from Karnataka locally. They took a few from Bangalore and Mysore. Recruitment was purely on academic merit to qualify for an entrance test which was anything but Greek to me. Then interview and so on.

      It is only when they began to expand over the years that they had no other choice but to take people from various places and build this empire. Murthy is a wonderful guy. Simple, down to earth person even till today.

      What is unfortunate is that despite all this, the Karnataka Govt is so corrupt and useless that after 20 years, they are still deciding about infrastructure. It's a joke. That will tell you how enterprising the local politicians are. Just imagine, an international airport on plan 10 years ago has still not started despite the fact that we had a so called Prime Minister Dev Gowda from Bangalore for 10 months. Thank God, they booted that guy from Delhi. Of course, now, his only work is to create trouble amongst the politicans in Bangalore to try and stall every project till he or his henchmen get a cut.

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