CtrlS Datacenters' P.S. Reddy: Indian IT Services Firms Need to Move up the Value Chain
Episode Description
India's much-vaunted wage advantage is rapidly thinning, and U.S. companies face government and social pressures to stop sending their work overseas, notes P.S. Reddy, chairman and managing director of CtrlS Datacenters, a Hyderabad-based provider of datacenter services. It is high time Indian IT services companies reinvent their business models to survive and grow, he says in an interview with India Knowledge@Wharton at the recent Wharton India Economic Forum in Philadelphia. 📂 Public Policy
Brief Summary
India's outsourcing industry faces challenges from wage inflation and competition but has opportunities in value-added services and infrastructure outsourcing.
Key points
- Outsourcing Industry Growth. The outsourcing industry in India has seen extraordinary growth but faces new challenges.
- Wage Inflation Impact. Wage inflation is making outsourcing less cost-effective, potentially changing the industry landscape.
- India's Competitive Edge. India's unique talent pool positions it well for outsourcing, despite rising competition.
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Episode highlights
- Outsourcing Industry GrowthThe outsourcing industry in India has seen extraordinary growth but faces new challenges.“The outsourcing industry has seen quite extraordinary growth.”0:58Aug 23, 2010
- Wage Inflation ImpactWage inflation is making outsourcing less cost-effective, potentially changing the industry landscape.“Wage inflation could make outsourcing not so cost-effective in the next five to six years.”2:46Aug 23, 2010
- India's Competitive EdgeIndia's unique talent pool positions it well for outsourcing, despite rising competition.“India is uniquely positioned when it comes to outsourcing.”9:20Aug 23, 2010
Tension
45/ 100Some tension
