August 14, 2007

West Bengal - Poised to take a leap in IT & ITeS?

Department of Information Technology, Government of West Bengal (www.itwb.org) is doing a remarkable work in supporting and nurturing IT industry in the state of West Bengal. Their investor-friendly approach and innovative action-oriented leadership has changed West Bengal over last five years. I am fortunate to be doing business in this state in such exciting times!

They have put up their vision as:

  • To Rank among top-3 IT States of India by 2010
  • Contribute 15% - 20% of the country’s total IT revenues
  • Create leadership position in executing high value-added IT work - developed through intellectual leadership and supported by Government initiatives

Their solid track record might just enable them to pull up and meet these targets. However, I seriously doubt that this position can be achieved and / or sustainable in long term. There are two core issues, which if not checked immediately will result in serious decline in the position that has been created with the initial efforts.

  1. The poor quality of education
  2. Indifferent attitude towards homegrown small and medium sized IT companies

Poor quality of education

Knowledge industry needs top quality human resource that are well educated, thoroughly knowledgeable and well groomed. Unfortunately our education system is inadequate and we are not creating employable talent.

  • IT education has become a low paid job and is mostly taken up by individuals who are unable to make it to the professional ranks in IT companies.
  • The education system is still based on text-books and spoon-fed course materials. Reading outside the prescribed text-books is hardly encouraged and/or practiced. This has resulted in a huge pool of IT resource pool with no individuality and poor problem solving capabilities.
  • Quality education has become privilege of an elite few who go to the top ranking institutions and comprise less than 1% of the total resource pool. It is unfortunate that most of these individuals decide to join companies outside India for better pay-packages draining away one-million-per-student from taxpayers money!
  • IT education has been limited to "programming"! I have spoken to thousands of It graduates and they have no idea that there are career opportunities in fields like testing, publishing, project management, etc.
  • Current education system revolves around imparting IQ and not EQ, which is most important for success
  • The current education system is biased towards commercially successful companies and their technologies like Microsoft and Sun. Low cost and easy-to-implement open source frameworks are ignored and are positioned as "alien" technologies which "does not have any career opportunities" to the students.
  • The general attitude, that has been built up among youngsters who are going for a job is to find a safe-secure job in a reputed stable company. They are not encouraged to take risk and help grow new leaders for the economy. It is very important to have a general "rough it out" attitude to make a place a hot destination for growing great companies. This is the reason some locations are very successful in creating great companies, while others lack far behind.

Indifferent attitude towards homegrown small and medium sized IT companies

I have personally felt that the state government has an indifferent attitude towards homegrown small and medium sized IT companies. It seems that their action plan clearly talks about getting external investment from successful IT companies worldwide. In short term this looks like a very good solution as it will get major investment in a short period of time and they will find their graph moving towards their projected figures. However in long term, it is very difficult to achieve sustainable and long term growth without tapping into the local entrepreneurial capabilities.

If you see the IT industry in Kolkata, you will hardly find a homegrown IT company who features among the top software exporters from West Bengal. In fact most of the home grown companies collectively do not employ even 25% IT workforce of Kolkata. We do not have any national hero or brand, which has made a mark on the national / global platform. When we go to global expositions like IndiaSoft and CeBIT, you do not see any company from West Bengal competing against the national players in the global marketplace.

Some basic reasons I can see are:

  • There is no affordable workspace for small and medium sized IT companies except SDF Building and a couple other locations built and operated by government or a government agency like Webel. There is major discrepancy in allocation of office space and land to small and medium sized businesses.
  • The law and order system is not up to the mark and in tune with possible cyber crimes. 90% of the police stations do not have any idea about cyber crime. If they land up investigating one, they will try to get rid of the same by harassing you to an extent that you will give up. Most of the police workforce is either not trained about white collar crime or they pretend not to know the subject. It is a known fact that crime rate is highest in small and medium sized enterprises, and most of them go unnoticed.
  • We get to deal with government official everyday, who does not know their own work. They come from different departments and confuse you to such an extent that you see no other option, but to bribe them and satisfy them!
  • Government is more interested in job creation than value creation. They are less interested in the quality and sustainability of jobs that are being created. Also, there is lesser emphasis on profitability of companies that exist. The economic eco-system works on value creation, which leads of job creation. This is not the other way around.  
  • Small and medium sized IT companies are not communicated the benefits they are entitled to! This results in a scenario that all the benefits are enjoyed by a select few.
  • The benefit claim process is very cumbersome and an IT business which needs a level of agility to perform optimally will not be able to claim the benefits they are entitled to, unless they put in considerable amount of effort behind the same or forge the paperwork!

Again, I personally believe that it is not the responsibility of educational institutions and government to push a business. However, for economic growth of a state which has been lying at the bottom of the economic chart for last thirty years, there needs to be initiative to creative a conductive environment.

Without most of these issues addressed, I do not see any long term sustainable growth of IT industry in West Bengal.

I wish I am wrong.

Abhishek

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June 5, 2007

Where is the growth focused?

There is a mad rush out here. Large swanky new shopping malls are opening every month to give the desired lifestyle to the next-generation Indians who believe in “work hard – party harder”. An average middle class Indian is earning well and want to live life BIG size.

When I was in Bath (U.K.) in 1999-2000, the difference in lifestyle (between India and U.K.) used to amaze me. I dreamt that one day India will follow suit. But I never thought that it will be so soon!  A lot of credit goes to the new age industries like IT, Biotechnology, Telecommunication followed by resurgence in media, real-estate, finance and retail.

So many new, dynamic and high-net-worth consumers are being created.

But, if you read the fine prints, we are jumping on to eat the fruits before it has ripened and are not putting enough effort to plan new trees.

We are growing because of the knowledge economy. Keeping this fact in mind, it is time that we ask some hard questions –

What are we doing to keep our self at the forefront of this economy?
Do we create and disseminate knowledge which will keep us at the ahead of competition?
Do we have enough universities and institutions which can equip our next generation of knowledge workers?
How will we educate such a fast growing population?
How will we learn to be creative and not repetitive?

The truth is – Our education system is pre-historic and there is no radical transformation since independence in 1947. There is no impetus on practical knowledge and original creation.

And the worst news is that we are trying to open more malls than quality educational institutions. We are happy with our IIT and IIM legacy which creates few thousand professionals every year. We are happy to quote these names and feel proud that these are few of the most respected institutions worldwide. Now ask few more questions:

What percentage of people in India wants to have higher education?
Out of this, what percentage actually gets quality higher education?
How many original world changing inventions have been done at IIT or IIM?
Where are the IIT & IIM alumni? How many of them are contributing towards the growth of India?
How many of IIT & IIM alumni have taken on the responsibility to spread the knowledge they have acquired?

The answers will give the real state of affairs!

For continued progress, India needs a mechanism to produce quality people. For that we need hundreds of quality institutions. Some of them will grow to become “center of excellence” like MIT, Stanford and CMU. But others should not be far behind!

Before, our government and business houses deliver the glamorous new India, they need to sit back and work out how to create the drivers of the new economy.

We need universities, not malls. Considerable amount of investments and efforts should be directed to create a conductive environment to create academia along with the industry. One cannot grow without the other.

The conclusion is:
We are reaping the harvest of the seeds that we sowed years back! But we are not sowing new seeds to secure our future. Let us do that before it is too late!

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May 17, 2007

Indus Net Academy - A step closer to my dream

There has been a lot of talk over the BIG IT talent pool in India. Every bureaucrat and market research agency in the country shows towering numbers of colleges and students that they produce.

But the burning question is - Is this talent employable?

The biggest challenge Indian IT industry faces today is the ever-growing gap between graduating engineers and employable graduates. If not checked in time, it might result in a lost opportunity for India Inc. as opportunities will not wait and move towards economies who provide more employable talent at the best ROI.

The main reasons for this gap are:

  • Low motivation for top experts to take up teaching as a profession.
  • Outdated syllabus, course curriculum, infrastructure, teaching methodologies and content!
  • Little or no emphasis in making people "life long learners", primarily because education is spoon fed in most institutions.
  • Priviledge to "best education" has been made available to selected class.
  • Poor use of technology to spread education to rural areas

There is a lot to rant about the negatives, which we all do. I never liked the way education is imparted in our country and always wanted to grab the first opportunity to change the same.

I am taking a humble step towards my dream project by launching Indus Net Academy in the third week of June 2007. I have coined the slogan as "New Age Education", which is timeless and conveys the feeling behind the project. The initial academic setup will be in a small area of 1000 sq feet, which will be extended as we mature and generate more demand.

Indus Net Academy has been housed in SDF Building, Sector V, Salt Lake, Kolkata for the following reasons:

  • Close to the industry!
  • Easy availability of successful professionals who might like to share their experience and knowledge.
  • Ease of management, since Indus Net Technologies is also located on 4th and 5th floor of the same building.

The purpose of Indus Net Acaemy can be summerised as follows:

  • Create employable talent
  • Continued education for working professionals
  • Accumulation & distribution of knowledge
  • Rural education

(From now onwards the team behind Indus Net Acaemy is being termed as "We" instead of "I" since many key members of Indus Net Technologies thinks about the academy the same way that I do and are working tirelessly to make it a success.

Initially, Indus Net Academy will start with career oriented professionally taught courses on:- Web Design, Web Development & Internet Marketing. The course will be taught by experts who are practising these subjects at Indus Net Technologies and serving clients from all over the world. Teaching methodology will be a mix of classroom based core concept delivery, self paced study, research and discussion on important ideas, lab sessions and practical tips from practitioners of "how things are done in real life".

We are further backing up the courses taught in Indus Net Academy with guaranteed jobs by joining hands with companies who need the "industry-ready talent".

Since we have in-house professional talent available in Indus Net Technologies, we chose to start with subjects related to Internet industry. As we move ahead, we expect professionals from different walks of life to be a part of this movement and make a difference - to make the "new age education" dream a reality!

Will keep you posted. Looking forward to a bright future…

Keep an eye on http://www.indusnetacademy.com/

 

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