A2X Consulting

Posted by AR

There are usually no trumpets to herald the arrival of a new dawn, and this news escaped many, even those who track the software industry regularly.

There were two positive pieces of news that I was ready to hear for a long time, but they only became reality recently: Fiirst, in politics, the Right to Information Act that was enacted recently by the Indian Congress-led government. And the second, the Indian companies, in this context TCS, trying to change the rules of outsourcing game by charging the fee on the outcome rather than their efforts.

The news on TCS can be read here –

http://economictimes.indiatimes.com/articleshow/msid-2033302,curpg-1.cms

On reading this article I was left, like Oliver Twist, asking for more! Only 4% is billed this way and their caution is understandable.

In his seminal article ‘Why Software Is So Bad’ in Technology Review (July / August 2002), Charles Mann found no hope for those companies using software, except litigation and legislation. By their method of charging on an hourly basis of effort, Indian software Industry merely reinforced their image as software coolies rather than as Consultants. However, one should remember that Indian software engineers put lots more time than ‘budgeted’ and charge far less just to keep up their image as a low cost destination.

The news from TCS thus comes as a beacon of hope. Long hours will no longer matter and their claims to sustain on the basis of innovation and providing value to customers will now be put to test.

I heard that Congress immediately regretted enacting the RTI Act and it will be no surprise if TCS too regrets its decision. But both are positive steps, one in the interest of the nation and other in the interest of the industry and that is why they need to be welcomed.