Death of Indian Outsourcing vs Hiranyakashyap model

As an avid reader of her blogs for many months now, I am glad Sramana Mitra has followed up with a 'India's Labour Arbitrage' for especially those who only come across her story on Death of Indian Outsourcing and reacted emotionally. And especially when it had been preceded by a story on an unknown entrepreneur Sridhar Vembu .

Almost coincidentally, my pal Charles Srinarayana pointed me to another story. By a doyen of Indian industry-albeit not from the IT domain!

Reinvent. Regroup. And Rethink our way out of challenges- was the mantra suggested by Mr Anand Mahindra's speech at Nasscom Leadership Summit last month, to the captains of the Indian IT industry!

In a very interesting analogy to the " Trimurti", Mr Mahindra described the Indian IT industry into the following phases:

"1.Like Brahma, you created something out of nothing. You created a new and global industry. And with the perceptions of a new India, both in the world (Indian students are brilliant, outstanding). and within India (self-belief !) "

2. In the realm of Vishnu the preserver sustaining that creation, to the IT industry, hit by a macroeconomic tsunami of adverse currency changes, rapidly escalating costs and inadequate talent pools, he suggests reinventing business models that challenge traditional industry approaches and then transform our organizations, people and processes. A la Vishnu vanquishing Hiranyakashyap.

3. Like Shiva the destroyer, destroy for example the premise that cost arbitrage is the way to go or look at the huge domestic market in middle class and corporate India that has not been plumbed.

To get back to Sramana's remedy- Increase supply. Reduce salary levels. This is Economics 101.

Simple solutions?

I am positive, as professionals in a globalised economy, we are constantly being challenged by diverse issues- at times seemingly overwhelming. It is really nice to know that we really don't have to look for solutions beyond our own childhood stories.

PS- Does anyone recall reading a book in the late eighties "All I Really Need To Know I Learned In Kindergarten" by Robert Fulghum ?

PPS- For all those desirous of returning to India, and debating the sub prime, US recession, dollar margins, and very keen on instant gratification, maybe it is time to have a debate? Why not come back to India- for the same reasons you went abroad? Your Future?