Wednesday, December 20, 2006

 

Indian firms: moving into high-value strategic advice

Mukul Kumar posted on Indian Firms moving into high-value strategic advice while Sadagopan discusses Consultants from Chennai. Of course they forgot to discuss some important considerations...



It is easy to get some small wins as moving up the IT value chain isn't that difficult. Keep in mind that the vast majority of IT executives in large enterprises have no clue and can be sold simply by doing a nice four-color Powerpoint presentation chock-a-block with eye candy but lacking substance. Since most aren't technical, they feel their way through things instead of using logic or anything that is backtestable such as results to make their judgement.

The real key that wasn't discussed was whom received the value. I understand that Indian outsourcing firms want to make more money and therefore going higher up the chain is sound, but did Northeast Utilities actually receive value for the amount they paid? Before you respond, I would like for you to first define value from the perspective of the enterprise. Tell me about how Northeast Utilities reduced long-term TCO in a way they couldn't have if they went with IBM? Don't claim that you helped with TCO or ROI as this would have occured even if you didn't win the business. In other words, I suspect that no one from India can actually define their true value proposition...




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