01 Sept 2019
Of late, there is a debate raging on how to REVIVE the ECONOMY , which has been slowing down for the past 4 quarters
Having been a Manufacturing Engineering for over 30 years, I know how difficult it is to " accelerate " factory processes , even in the face of a huge unmet market demand for your products
It takes , months and years to build up capacities , even if FUNDS ( easily available Bank Loans ? ), are no problem
So , is there a way forward to accelerate the ECONOMY ? Yes, if only our Netas , do not hesitate to take some OUT-OF-BOX decisions , mentioned here :
MYBLOGEPAGE.BLOGSPOT.COM
Towards Nasscom 2.0
Highlights :
INDIAN IT BPM INDUSTRY IN FY 19 { Y-O-Y growth }
# Revenue…………………… 6.1 % [ $ 177 billion ]
# Exports……………………. 8.3 % [ $ 136 billion ]
# Domestic Inflow………. 7.9 % [ Rs 2.9 lakhcrore ]
# Employees………………… 4.3 % [ 4.14 million ]
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Way back on Aug 01, 2017 , Business Line carried following article :
Highlights from my related blog : Brain Inc 2.0 / 21 Aug 2017 ]
* 5 lakh ( 500,000 ) engineers work in “ Tech R&D firms “ in India
* $ 22 Billion was the worth of their work in 2015-16
* This will nearly DOUBLE to $ 40 Billion in 2020
Now consider this :
· By employing 5 lakh engineers , India’s “ Tech R&D Firms “ earned $ 22 billion . That works to a billing of $ 44,000 per man-year of R&D ( Export of Services )
· I presume that the “ Manpower Cost “ constitute approx. 50 % of Billing Rate ( rest being OVERHEADS and MARGIN )
· Hence , Indian R&D firms must be paying an average of $ 22,000 per year to its employees ( approx. Rs 1.2 lakh per month )
· As against this , both , Indian as well as American firms pay ( on an average ) , $ 88,000 per year to H1 B visa holders
[ Current Scenario in Aug 2017 , as per Shri Keshav Mrugesh- Chairman, NASSCOM :
“ According to a research by HIS Markit, average wages for Indian IT professionals in the US was nearly $ 94,800 , while Indian companies paid $ 96,300, he says. This demolishes the myth on low wages “ ]
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Now with the disappearance of this “ Cost Advantage “ which existed in 2017 , is there a possibility to do better than the projected earnings of $ 40 billion in 2020 ?
My take :
It is possible if the Central Government considers following suggestions :
· Back Factory of the World ? [ 09 Sept 2015 ]
https://myblogepage.
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· Agenda for Reforms [ 01 Oct 2015 ]
https://myblogepage.
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· Vishal’s Vision
https://myblogepage.
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· Will holograms beat H1 B visa ban ? [ 31 Jan 2017 ]
https://myblogepage.
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· Worm Holes across the World ? [ 03 March 2017 ]
https://myblogepage.blogspot.
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It is high time our Policy Makers launch a new initiative ( of Export of Intellectual Property ) , called :
INDIA : the BRAIN FACTORY of THE WORLD
Dear,
Shri Ravi Shankar Prasadji ,
Shrimati Nirmala Sitharamanji,
Shri Prakash Javadekarji and
Dr Harshvardhanji ,
With a measly 5 % GDP growth in the latest quarter , it does not seem possible to REVIVE the ECONOMY , by focusing on MANUFACTURING
Given the urgency of such a revival , SERVICE SECTOR acceleration is the only answer !
And , right now, that happens to be : IT BPM ( including IT hw/sw R&D export )
I urge you to consider my suggestions ( listed in above-mentioned blogs ), for your next OUT-of-BOX reform announcement
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01 Sept 2019
Rsvp : hcp@RecruitGuru.com
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