Are you finding it difficult to ease life's chaotic pressures on your mind? Take a deep breath and just follow these six steps to a soothing mental symphony
We live in a noisy, chaotic world. Many might argue that it's always been like this. Maybe. Perhaps we had the same basic notions of cacophony eons ago. But the prism of modern development has magnified the human noises to an unbearable extent.
The result: even when we shut ourselves indoors, far away from the madding crowd, we can still hear the echoes of that clamor in our mind. Echoes that refuse to go away. Echoes that cling to a mind desperately wanting to relax. Echoes that impede or interfere with the body’s natural tendency to remain in an easy, happy existence.
Tell me frankly, haven’t you been in situations when – even after you lie down – your mind continues to overflow with thoughts of care, worries of yesterdays, and noises from the daily rumble around you?
The dictum “A healthy mind in a healthy body” holds true in its inverse form as well. If you keep your mind in a poised, relaxed state, you are more likely to have a physically fit body. As modern research in psychosomatic medicine suggests, the condition of the mind directly or indirectly affects the body’s wellbeing.
So, how can you detox your mind? How can you drive out stress, commotion, conflicts and other detritus from the daily life and invite in a gentle sense of calmness and poise? Can you do it without retreating to a remote, secluded (and often, expensive) resort or spa? Hell, can you do it in your existing routine?
Don't try and raise hell. Try, instead, these simple tips for giving your mind the peace it's been asking for.
Finish what you start: The mind is like a non-stop factory in which our words and thoughts are either woven into new fabric to clothe our personas or taken apart to be deposited on a growing pile of rags and tatters. Often, there are many unfinished strands that just lie about frayed in our mind, without finding their perfect-knit. A growing list of incomplete things can make you feel miserable and wanting. So go back to your to-do lists and keep them to a manageable minimum. If you know you can only do ten things rather than twenty-three, leave the unwanted thirteen out.
Make only the commitments you can keep: A businessman once gave this advice when starting up his son: “My son, never break a promise; but then, never make a promise!” Well, you’ll have to make commitments in your daily life: just be sure to make only those that you can keep. If you are firm in accepting only what you can do now, it will save you from the gnawing feelings of failed commitments later.
Exercise focused concentration: According to mind-training experts, one must pursue what one wants to achieve with “focused concentration.” Through constant practice, one can indeed train one’s mind to think about one thing at a time. This is what most meditative techniques also suggest: focusing the mind on one shape, sound, color, or any other object. The idea is to constantly train the mind on the job at hand. After sufficient practice, this ‘training’ should cease to be an effort and become second nature to you.
Forsake your regrets: We often don’t realize it, but we routinely carry a scary load of regrets at the back of our minds. If only we could do this! If only we had seen that coming! Our laundry list of regrets keeps getting longer and longer – without ever getting ample washing. Unbuckle your past lamentations and let them rinse down your memory drain one by one – and you’ll feel the same lightness and crispness that you do when you put on a freshly washed and sunned piece of garment.
Practice doing nothing: It is usually said that “an empty mind is the Devil’s workshop.” However, there’s an art to emptying the mind that yogis, rishis and monks have been practicing and preaching over the ages. An art that, instead of making your mind a playground for Satan, can make it a blessed abode of the gods.
Think about it: we are infused with a lifestyle that requires us to be always doing something or the other. If we were really programmed that way, there would be no need for sleep, isn't it? By doing nothing, however, I don’t mean sitting idle or staring at the idiot box. What I mean is being free of your troubling, trivial and compulsive thoughts.
Choose a moment and place when you are just by yourself. Take a posture in which you are comfortable and let the whole world pass by you as if you were a spectator serenely yet effortlessly watching life’s little episodes. In such a state of nothingness, you can often feel the goddess of peace whispering gently in your mind.
Curb your craves: This one is not easy, especially because most people live to have more, get more or possess more. But if you can reduce the number of things you depend on or cut down your list of must-haves, you’ll also reduce the burden of relentlessly going after them. Pursue your ambitions or follow your dreams by all means, but don’t let them become your daily pester points. Set out to achieve big things that matter to you, but try and shun mere objects of desire that you constantly crave. Like I said, it’s a bit difficult to achieve this balance between worthy objectives and petty longings – but it’s far from impossible. And indeed very tranquilizing. Just ask your mind.
Wednesday, April 27, 2011
Tuesday, March 8, 2011
5 Mistakes PR Pros Must Avoid but Often Don't
Ever wonder why your communication wasn't well-received in the media? It might have misfired because you failed to avoid one of these traps
Public relations is a tricky, often thankless business. While the tricky part is acknowledged by the PR pros, it is the journalists who often bring in thanklessness (add ungrateful clients, too).
But it's a business – and a lucrative one at that, all right. So it wouldn't hurt to go through some tips that might help.
In communication schools or on-the-job, most PR executives learn the common tricks of their trade: treat clients (and journalists) with respect, always spell-check your releases (do you?), and yes, don't forget to bill clients for the out-of-pocket expenses.
Yet, there are also some no-nos that a seasoned PR exec should avoid under most circumstances. Unfortunately, in the hurly-burly world of 'mass' communication, things are prone to turn out into 'mess' communication. That's why it's important for a PR pro to keep in mind these five don'ts when communicating with journalists:
Long-winding story pitches: In the course of writing their stories, journalists often go through a lot of background and research material. But they would rather look at a lot of text about a story they have chosen to do than read paras upon paras intended to give them a story idea. So keep your pitch mailers or calls short and sweet. If the journo likes it, they'll jump at it anyway. But if it doesn't cut ice in the first couple of sentences, don't bore him with dense details, please.
Mixing up similar media: The media scene today is crowded. But that's no excuse for calling up a journalist and mixing up the name of their media house or publication with another one – which, annoyingly, usually happens to be a key rival. Get the journo's name, their paper's name and, if necessary, the name of their dog right. Names are important, very important (as you sometimes might have realized when your client's name appeared misspelled in the headline!)
Corralling journalists for a conference: “You must come.” “Please, it's the most important event for our client!” “The client is holding this PC (press conference) after a gap of two years.”
Understood. Your client and their conference is all-important to you. But unless you can find something of relevance to the journalist in question, it's not good practice to request-force them into attending the event. Even if you send the cab. In any case, most communication today happens on the phone or over email, and journalists (especially experienced ones) usually attend only the really significant conferences or those where they expect to network with lots of friends or industry execs.
Following up too much: If not following up at all is a disaster, pestering the journalist with too many calls for a press release or a story is anathema. Too much aggression can perhaps get you in the first time, but the media will be alerted to your tactics sooner rather than later. And then? Then they'll avoid you like a diabetic shuns sugar. So learn to strike a balance in how much you follow up.
Hiding the negative: Thanks to the Internet, it's not that difficult to discover skeletons in a company's cupboard (and these days there are many). Then there are journalists' contacts and other 'sources.' So if you happen to know that a journalist has gotten wind of something fishy or negative about your client, try to illuminate it in the light that your client wants to. Trying to hide it or cover it up with fluff usually makes the journalist more dogged in their pursuit – and, of course, leaves a worse impression than they started off with.
Needless to say, these aren't the only don'ts. For instance, you shouldn't miss a journalist's story deadline if you want to ensure that your client's inputs are taken or their name mentioned where it matters. But the above are points that keep recurring in PR-media communication and that often harm your efforts behind-the-scenes rather than upfront. For want of caution, don't let your key messages go wasted.
Public relations is a tricky, often thankless business. While the tricky part is acknowledged by the PR pros, it is the journalists who often bring in thanklessness (add ungrateful clients, too).
But it's a business – and a lucrative one at that, all right. So it wouldn't hurt to go through some tips that might help.
In communication schools or on-the-job, most PR executives learn the common tricks of their trade: treat clients (and journalists) with respect, always spell-check your releases (do you?), and yes, don't forget to bill clients for the out-of-pocket expenses.
Yet, there are also some no-nos that a seasoned PR exec should avoid under most circumstances. Unfortunately, in the hurly-burly world of 'mass' communication, things are prone to turn out into 'mess' communication. That's why it's important for a PR pro to keep in mind these five don'ts when communicating with journalists:
Long-winding story pitches: In the course of writing their stories, journalists often go through a lot of background and research material. But they would rather look at a lot of text about a story they have chosen to do than read paras upon paras intended to give them a story idea. So keep your pitch mailers or calls short and sweet. If the journo likes it, they'll jump at it anyway. But if it doesn't cut ice in the first couple of sentences, don't bore him with dense details, please.
Mixing up similar media: The media scene today is crowded. But that's no excuse for calling up a journalist and mixing up the name of their media house or publication with another one – which, annoyingly, usually happens to be a key rival. Get the journo's name, their paper's name and, if necessary, the name of their dog right. Names are important, very important (as you sometimes might have realized when your client's name appeared misspelled in the headline!)
Corralling journalists for a conference: “You must come.” “Please, it's the most important event for our client!” “The client is holding this PC (press conference) after a gap of two years.”
Understood. Your client and their conference is all-important to you. But unless you can find something of relevance to the journalist in question, it's not good practice to request-force them into attending the event. Even if you send the cab. In any case, most communication today happens on the phone or over email, and journalists (especially experienced ones) usually attend only the really significant conferences or those where they expect to network with lots of friends or industry execs.
Following up too much: If not following up at all is a disaster, pestering the journalist with too many calls for a press release or a story is anathema. Too much aggression can perhaps get you in the first time, but the media will be alerted to your tactics sooner rather than later. And then? Then they'll avoid you like a diabetic shuns sugar. So learn to strike a balance in how much you follow up.
Hiding the negative: Thanks to the Internet, it's not that difficult to discover skeletons in a company's cupboard (and these days there are many). Then there are journalists' contacts and other 'sources.' So if you happen to know that a journalist has gotten wind of something fishy or negative about your client, try to illuminate it in the light that your client wants to. Trying to hide it or cover it up with fluff usually makes the journalist more dogged in their pursuit – and, of course, leaves a worse impression than they started off with.
Needless to say, these aren't the only don'ts. For instance, you shouldn't miss a journalist's story deadline if you want to ensure that your client's inputs are taken or their name mentioned where it matters. But the above are points that keep recurring in PR-media communication and that often harm your efforts behind-the-scenes rather than upfront. For want of caution, don't let your key messages go wasted.
Thursday, February 10, 2011
Excuse Me, an iPad for You? No, Thanks!
In spite of being labeled as the fastest selling gadget, the iPad is doomed to fail in India. The reason? The dynamics of the Indian market are completely different.
Apple Computer has always regarded the Indian market as the boondocks, keeping its presence in the country very limited and launching many of its products late into the country's ultra price-sensitive market. The most recent example: the iPad, which was launched here almost 10 months after its US debut.
Not that the company is entirely wrong in its thinking. Only 10 million PCs are estimated to be sold a year in a country of 1.1 billion – whereas this figure is over 70 million for US, whose population is about 300 million.
But that's only the macro picture. When you look at the details of how and why most consumers buy computing devices in India, the case for a product like the iPad becomes clear. Whether it's a desktop, a laptop, netbook, or, ahem, a tablet, Indians go shopping for computers mainly for two reasons: office work or children's education. And the majority of them look for the cheapest options on the market.
So when you drill down to the lowly category of tablet computers, all the thrill and whistles are confined to a few thousand people – including geeks, aficionados, analysts and media. They may chorus excitement and wonder in an echo of the US market, but the realities in India are totally different. But even they would prefer a sleek notebook (even netbook) or go for a smartphone rather than loosen their purse strings for something that is neither a full-fledged computer nor a handy smartphone.
Consider this. When a product like the iPad is launched in the mature and advanced markets like the US or Japan, people queue up outside hundreds of retail stores even before the doors open. Here in India, if you go to a handful of Apple stores that exist (only in the big metros), they mostly maintain a bare, clean look. And the few curious visitors who do enter the stores come out rather quickly, usually empty-handed.
So the iPad might have sold in millions in USA and Japan, in India the sales number over the next one year is bound to be in single-digit thousands or even just a few hundreds. Some market estimates put the total number of iPads in the hands of Indians thus far - including gray market sales, online purchases and those brought from abroad – at 40,000. But even this number seems suspect on the higher side.
One might argue that the starting price tag of about Rs28,000 isn't that high. (To give you an idea of the priciness of Apple products, an entry-level Mac starts around Rs60,000 whereas one can get a high-end custom-built or branded PC for less than Rs40,000. The iPad range is priced up to Rs45,000 in three versions.)
However, for a product like the iPad – and there's a debate about what animal exactly the iPad is – it is not just the price that will act as a stumbling block. There just isn't enough traction for it in India.
In developed countries where iPads are selling like crazy, consumers are used to a rich online web experience. This includes putting up lots of pictures and videos online, listening to music and podcasts, even reading books and periodicals (remember Kindle?). There's a large consumer base and widespread and easy availability of high-speed connectivity, applications and quality content.
India, in contrast, is a country where all this enabling infrastructure is missing. We are still arguing about 2G licensing irregularities while the world is moving on to 4G. Here, the average time spent online is among the lowest. And the 30-million-odd Internet users who do go online mostly surf job sites, buy travel tickets or send/receive emails. A few thousand do hang around on Facebook, Orkut or LinkedIn, but so what? They just hang around most of the time.
None of these constituents of the Indian cyberworld would need an iPad. Not in the short term at least.
Some reviewers and analysts are urging consumers in India to hold their iPad purchases until iPad 2 is unveiled. My response to them: don't bother, guys. They wouldn't buy iPad 1. They wouldn't buy iPad 2.
Apple Computer has always regarded the Indian market as the boondocks, keeping its presence in the country very limited and launching many of its products late into the country's ultra price-sensitive market. The most recent example: the iPad, which was launched here almost 10 months after its US debut.
Not that the company is entirely wrong in its thinking. Only 10 million PCs are estimated to be sold a year in a country of 1.1 billion – whereas this figure is over 70 million for US, whose population is about 300 million.
But that's only the macro picture. When you look at the details of how and why most consumers buy computing devices in India, the case for a product like the iPad becomes clear. Whether it's a desktop, a laptop, netbook, or, ahem, a tablet, Indians go shopping for computers mainly for two reasons: office work or children's education. And the majority of them look for the cheapest options on the market.
So when you drill down to the lowly category of tablet computers, all the thrill and whistles are confined to a few thousand people – including geeks, aficionados, analysts and media. They may chorus excitement and wonder in an echo of the US market, but the realities in India are totally different. But even they would prefer a sleek notebook (even netbook) or go for a smartphone rather than loosen their purse strings for something that is neither a full-fledged computer nor a handy smartphone.
Consider this. When a product like the iPad is launched in the mature and advanced markets like the US or Japan, people queue up outside hundreds of retail stores even before the doors open. Here in India, if you go to a handful of Apple stores that exist (only in the big metros), they mostly maintain a bare, clean look. And the few curious visitors who do enter the stores come out rather quickly, usually empty-handed.
So the iPad might have sold in millions in USA and Japan, in India the sales number over the next one year is bound to be in single-digit thousands or even just a few hundreds. Some market estimates put the total number of iPads in the hands of Indians thus far - including gray market sales, online purchases and those brought from abroad – at 40,000. But even this number seems suspect on the higher side.
One might argue that the starting price tag of about Rs28,000 isn't that high. (To give you an idea of the priciness of Apple products, an entry-level Mac starts around Rs60,000 whereas one can get a high-end custom-built or branded PC for less than Rs40,000. The iPad range is priced up to Rs45,000 in three versions.)
However, for a product like the iPad – and there's a debate about what animal exactly the iPad is – it is not just the price that will act as a stumbling block. There just isn't enough traction for it in India.
In developed countries where iPads are selling like crazy, consumers are used to a rich online web experience. This includes putting up lots of pictures and videos online, listening to music and podcasts, even reading books and periodicals (remember Kindle?). There's a large consumer base and widespread and easy availability of high-speed connectivity, applications and quality content.
India, in contrast, is a country where all this enabling infrastructure is missing. We are still arguing about 2G licensing irregularities while the world is moving on to 4G. Here, the average time spent online is among the lowest. And the 30-million-odd Internet users who do go online mostly surf job sites, buy travel tickets or send/receive emails. A few thousand do hang around on Facebook, Orkut or LinkedIn, but so what? They just hang around most of the time.
None of these constituents of the Indian cyberworld would need an iPad. Not in the short term at least.
Some reviewers and analysts are urging consumers in India to hold their iPad purchases until iPad 2 is unveiled. My response to them: don't bother, guys. They wouldn't buy iPad 1. They wouldn't buy iPad 2.
Monday, January 24, 2011
Why Reading Your Horoscope Doesn't Help
Okay, first the facts: millions of people around the world spend a fortune on knowing about their future. And what they spend is not just money but invaluable time when they read predictions of all kinds in a variety of media.
But do they get their money and time's worth when they rely on a motley bunch of people who know zilch about them? Palmists, numerologists, tarot readers, and others who use all sorts of animals from parrots to Pomeranians. Can there be some truth in what they churn out?
If you really ask me, horoscopes suck. Especially the daily horoscopes appearing in newspapers, magazines and websites. And they suck big time. Here's why.
If you look carefully, most predictions are vague and based on common sense. They could have come from anyone with half a brain. Sample this prophecy I picked from a popular website: “Your curiosity is running on high, and you just won’t stand for anything less than the entire truth, no matter what question you ask. Your antennae will tell you whether it’s an honest answer.”
Well, my antennae tell me that not many people would admit that they'll “stand for less than the entire truth.” Needless to say, such a cloudy bit of mumbo jumbo would put me off rather than bolster my confidence – and boosting their self-assurance is what many horoscope readers look for.
Here’s another specimen from the Sunday edition of a paper: “You suffer a great deal because of others’ wrongdoing. Maybe it’s time you stopped others from taking you for granted. Just be more assertive and you’ll find all the happiness you deserve.”
Wow! Reading these lines, our bleary-eyed reader is sure to scream with self-pitying joy: “I told you so. See, it’s all their fault!” The advice may not turn our feeble fella into a bold brat, but it can perhaps make them feel a bit over the top.
Again, I'm not sure of the usefulness of the proffered suggestion. Tell me honestly, who benefits from being over-emotional in this day and age?
Wait, there’s more stuff coming up. This one was buried inside an old stack of newspapers. And it caught my eye when I was looking for something else. (Isn’t that how you find anything these days?)
It goes like this: “Your stars are shining bright and mighty. Just the perfect time to make that critical move you have been waiting for all your life. Lucky numbers 1, 3 and 7; favorable colors Blue and Orange.”
Oh, really? You mean, if I wear a blue shirt to office today, I can tell my boss to take a walk? Or if I pick a lottery ticket with these three digits in it, I’ll become an instant millionaire? Aw, c'mon dude, stop kidding me. If it were that simple, we would all be enjoying pina coladas on a sunny beach doing nothing but reading horoscopes.
Now, tell me, do you still want to know what the stars say about you?
But do they get their money and time's worth when they rely on a motley bunch of people who know zilch about them? Palmists, numerologists, tarot readers, and others who use all sorts of animals from parrots to Pomeranians. Can there be some truth in what they churn out?
If you really ask me, horoscopes suck. Especially the daily horoscopes appearing in newspapers, magazines and websites. And they suck big time. Here's why.
If you look carefully, most predictions are vague and based on common sense. They could have come from anyone with half a brain. Sample this prophecy I picked from a popular website: “Your curiosity is running on high, and you just won’t stand for anything less than the entire truth, no matter what question you ask. Your antennae will tell you whether it’s an honest answer.”
Well, my antennae tell me that not many people would admit that they'll “stand for less than the entire truth.” Needless to say, such a cloudy bit of mumbo jumbo would put me off rather than bolster my confidence – and boosting their self-assurance is what many horoscope readers look for.
Here’s another specimen from the Sunday edition of a paper: “You suffer a great deal because of others’ wrongdoing. Maybe it’s time you stopped others from taking you for granted. Just be more assertive and you’ll find all the happiness you deserve.”
Wow! Reading these lines, our bleary-eyed reader is sure to scream with self-pitying joy: “I told you so. See, it’s all their fault!” The advice may not turn our feeble fella into a bold brat, but it can perhaps make them feel a bit over the top.
Again, I'm not sure of the usefulness of the proffered suggestion. Tell me honestly, who benefits from being over-emotional in this day and age?
Wait, there’s more stuff coming up. This one was buried inside an old stack of newspapers. And it caught my eye when I was looking for something else. (Isn’t that how you find anything these days?)
It goes like this: “Your stars are shining bright and mighty. Just the perfect time to make that critical move you have been waiting for all your life. Lucky numbers 1, 3 and 7; favorable colors Blue and Orange.”
Oh, really? You mean, if I wear a blue shirt to office today, I can tell my boss to take a walk? Or if I pick a lottery ticket with these three digits in it, I’ll become an instant millionaire? Aw, c'mon dude, stop kidding me. If it were that simple, we would all be enjoying pina coladas on a sunny beach doing nothing but reading horoscopes.
Now, tell me, do you still want to know what the stars say about you?
Sunday, January 16, 2011
Why Companies Like Infosys Consistently Fail
Far from making it a software superpower, Indian technology firms seem to be struggling to remain relevant in the global market. The financial results of Infosys are just one indication. Here's why.
Once again, the financial results of the so-called Indian tech bellwether Infosys have disappointed – but there are much bigger concerns for its future.
In its recently declared results for the third quarter of 2010, Infosys made net income of $397 million on revenues of $1.58 billion for Q3 2010. This represents a year-on-year (YOY) growth of 28.7% in revenues and 18.9% in net income.
Despite growth in the numbers, shares of the company fell on both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on the news, mainly because analysts expected still better numbers. The company's less-than-encouraging future outlook did little to help matters.
This is a story that keeps repeating in the media – with slight variations – each quarter when the big daddies of Indian tech industry (TCS, Infosys, Wipro, HCL and a couple others) declare financial results.
In most cases, analyst expectations are either barely met or missed by single-digit percentage points. Likewise, the stock of the company goes up or down a little – sometimes taking the BSE Sensex (sensitive index) down as well.
While this little see-saw of results keeps anaylsts and media busy, few are asking the bigger questions that face the future of Indian software industry as a whole. How long can the likes of Infosys, TCS and Wipro grow linearly on the basis of hiring more code-writers?
Can they make the next big leap from $4-5 billion companies they are today to $50 billion or $100 billion global corporations in the foreseeable future?
Can they rise significantly above their current minuscule share of 0.6% in the nearly $780 billion worldwide tech services market?
And most importantly, can their existing business models remain relevant in a world where sea changes are happening in the way consumers buy products, including software and applications? (Think of the app stores for anything from iPhones and iPads to Android-based smartphones.)
For decades, companies like Infosys have spawned an army of low-level software programmers, plunging them into projects for maintaining applications, providing technical support, managing systems, etc. Such work usually comes from big global corporations in various industry segments, who bought expensive hardware and software from companies that had the intellectual property (IBM, Oracle, SAP et al) and then began seeking cost reduction in maintaining or upgrading these systems.
Indian firms like Infosys, TCS, Wipro, HCL and multinationals such as IBM and Accenture have been competing to get these tech projects, with Indian companies usually quoting lower and lower prices they charge clients on an hourly basis (now with large developer bases in India, MNCs can do that, too). Already, such rates seem to have hit rock bottom (around $10-15 per hour) and many Indian firms have increasingly focused on BPO (Business Process Outsourcing) for additional growth.
But again with BPO, the business model has been 'more bodies on the job for more projects'. And even in BPO, there has been a race to the bottom as far as pricing is concerned.
This is not the first time Indian firms are being criticized for their lack of vision and daring. But they have responded to such criticim with intermittent, half-hearted attempts like trying to 'move up the value chain in consulting' and developing or monetizing branded products. And they have consistently failed in achieving any speakable amount of success in anything other than hiring more people or spreading into more locations.
To be fair, Indian tech industry has given a new recognition to the country of snake charmers and roadside bovinity. But its success has been only modest, to be polite. While many in the industry and media gave India the moniker of a 'software superpower', advanced economies such as US, Germany and Japan have tech behemoths whose turnover still far exceeds the scrapings of the whole Indian tech industry.
So, it is this failure to grow beyond their existing business models and become world-class global corporations that should be more worrying for Indian technology firms than short-term needs to meet analyst expectations. Unfortunately, keeping shareholders happy and stock price afloat is where they spend their time and energy – instead of developing something that creates higher and lasting value.
It is well known that most top tech companies in India are awash with funds and have ample human resources (the biggies employ 100,000-plus people). But they like to keep the cash in banks or use it for things like hedging on currency fluctuations. Likewise, they keep their armies of techies happy with flashy campuses and infrastructure. But they do little to ingite any sparks of creativity in their people so that they could come up with the next Facebook or Zynga.
As I said before, that's where the likes of Infosys have consistently failed.
How long can they keep failing like this?
Once again, the financial results of the so-called Indian tech bellwether Infosys have disappointed – but there are much bigger concerns for its future.
In its recently declared results for the third quarter of 2010, Infosys made net income of $397 million on revenues of $1.58 billion for Q3 2010. This represents a year-on-year (YOY) growth of 28.7% in revenues and 18.9% in net income.
Despite growth in the numbers, shares of the company fell on both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on the news, mainly because analysts expected still better numbers. The company's less-than-encouraging future outlook did little to help matters.
This is a story that keeps repeating in the media – with slight variations – each quarter when the big daddies of Indian tech industry (TCS, Infosys, Wipro, HCL and a couple others) declare financial results.
In most cases, analyst expectations are either barely met or missed by single-digit percentage points. Likewise, the stock of the company goes up or down a little – sometimes taking the BSE Sensex (sensitive index) down as well.
While this little see-saw of results keeps anaylsts and media busy, few are asking the bigger questions that face the future of Indian software industry as a whole. How long can the likes of Infosys, TCS and Wipro grow linearly on the basis of hiring more code-writers?
Can they make the next big leap from $4-5 billion companies they are today to $50 billion or $100 billion global corporations in the foreseeable future?
Can they rise significantly above their current minuscule share of 0.6% in the nearly $780 billion worldwide tech services market?
And most importantly, can their existing business models remain relevant in a world where sea changes are happening in the way consumers buy products, including software and applications? (Think of the app stores for anything from iPhones and iPads to Android-based smartphones.)
For decades, companies like Infosys have spawned an army of low-level software programmers, plunging them into projects for maintaining applications, providing technical support, managing systems, etc. Such work usually comes from big global corporations in various industry segments, who bought expensive hardware and software from companies that had the intellectual property (IBM, Oracle, SAP et al) and then began seeking cost reduction in maintaining or upgrading these systems.
Indian firms like Infosys, TCS, Wipro, HCL and multinationals such as IBM and Accenture have been competing to get these tech projects, with Indian companies usually quoting lower and lower prices they charge clients on an hourly basis (now with large developer bases in India, MNCs can do that, too). Already, such rates seem to have hit rock bottom (around $10-15 per hour) and many Indian firms have increasingly focused on BPO (Business Process Outsourcing) for additional growth.
But again with BPO, the business model has been 'more bodies on the job for more projects'. And even in BPO, there has been a race to the bottom as far as pricing is concerned.
This is not the first time Indian firms are being criticized for their lack of vision and daring. But they have responded to such criticim with intermittent, half-hearted attempts like trying to 'move up the value chain in consulting' and developing or monetizing branded products. And they have consistently failed in achieving any speakable amount of success in anything other than hiring more people or spreading into more locations.
To be fair, Indian tech industry has given a new recognition to the country of snake charmers and roadside bovinity. But its success has been only modest, to be polite. While many in the industry and media gave India the moniker of a 'software superpower', advanced economies such as US, Germany and Japan have tech behemoths whose turnover still far exceeds the scrapings of the whole Indian tech industry.
So, it is this failure to grow beyond their existing business models and become world-class global corporations that should be more worrying for Indian technology firms than short-term needs to meet analyst expectations. Unfortunately, keeping shareholders happy and stock price afloat is where they spend their time and energy – instead of developing something that creates higher and lasting value.
It is well known that most top tech companies in India are awash with funds and have ample human resources (the biggies employ 100,000-plus people). But they like to keep the cash in banks or use it for things like hedging on currency fluctuations. Likewise, they keep their armies of techies happy with flashy campuses and infrastructure. But they do little to ingite any sparks of creativity in their people so that they could come up with the next Facebook or Zynga.
As I said before, that's where the likes of Infosys have consistently failed.
How long can they keep failing like this?
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