Indian IT Industry: Time for new Sigmoid?

When will the business model of Indian IT service providers change from Labor arbitrage model to value arbitrage model?.

When will the delivery excellence be measured by the business value generated rather than number of new grads inducted into the team?

When will the innovation will be counted by the number of patents/ideas generated rather than the number of bodies ramped up?

Are Indian IT service providers too narrowly focused on Q to Q margins and not forward investing for future growth?

Isn’t the 90’s labor arbitrage business model has outlived and progressively getting less relavant?.

Isn’t it time for a new sigmoid?

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1 Response to “Indian IT Industry: Time for new Sigmoid?”


  1. 1 Ignatius April 8, 2011 at 2:54 pm

    The issue with IT Services industry is that for the last 10 years there hasn’t been any NEW service line that is created. The last of the one’s i remember from outsourcing perspective was clinical trials but that is remotely connected to IT! If there is no innovation and movement towards IP, Product, Sotware then we would always be a cost arbitrage shop / industry.


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