Business Week: A trade-off between Design/Innovation and Cost does not existPosted: December 25, 2005
Original Article: “India and China: not just cheap“. Business Week.
I enjoyed reading the article. It challenges an otherwise tempting assumption – don’t expect that a lower cost implies lower quality. Putting any faith in the existence of such a relationship is a mistake. The author presents evidence from past events in the automobile and electronics industry. Essentially, the form India assumes in foreign eyes is that of a cheap back office, things get done well, for cheap and conform to specifications, however, don’t expect anything innovative. The innovation will still lie in the hands of the Masters. The author asserts that such an atitude is simply denying reality.
With the increase in foreign interest and investment in Information Technology, India finds itself at the cusp of an interesting and valuable opportunity. It now has an increased ability to shore up its strengths and bridge its weaknesses. From a long-term point of view – social change is inevitable. This has been the predominant theme of 2005. The reality is – the depth and range of capabilities of Indian companies is going to grow, fueled by this very social change. An endless feedback loop (very like the cycle of karma and evolution 🙂 ). Talent will be honed and innovation beyond expectations will be encouraged. This applies to all fields, science, engineering, management and others. India does have some catching up to do in terms of its contribution.