There is this huge baloon called the Indian IT Industry which was being inflated right from the year 2001, as soon as the word "Outsourcing" gained momentum. For the companies, it was a good thing to do to save themselves from being doomed.
As you already know, for a company, the bulk of the expenditure is salary. The giants in the Financial Software, Retail Software and Banking Software and (particularly) the Telecom Sector started their outsourcing model (some of them also gave names like Offshore-Onsite model) to reduce the company expenditures by cutting down the task force responsible for the software implementation and execution arm. These jobs were outsourced to India/China/Romania/Vietnam/Brazil etc.
Outsourcing was a definitely a success in some sorts , it did bring out a sigh of relief for the software giants like IBM, HP , Accenture and also established India as a popular outsourcing destination for these companies.
Outsourcing made the Indian Software Industry unnaturally big. But, how long will this model survive ?
As the Indian Software Industry has matured (has it?), there are a large number of problems which are plaguing the Industry. The first problem is to find the "right compensation" for a particular engineer (or "IT Professional" ). Since companies are trying to get software projects by hook or crook, the competitors are ready to pay any amount of money. The job market is so lucrative that you stumble across news like these :-
10,000 quit TCS, Infy, Wipro, Satyam in Q1 . This is in fact, not such an alarming number because in effect, it accounts to 15% annual attrition.
The Indian Software Industry still seems to focus on Engineers with expertise in C, C++ or JAVA or EJB or J2ME or some thing who can be roped in to do sub-standard maintenance. Writing Software is not just about knowing some languages or platforms or perhaps even Data Structures and Algorithms or the ability to understand a cryptic programming language syntax. It is like asking a guy who is a master of English to explain the theory of Supernova explosion. This is something which has to be drilled into both the heads of job seekers and job givers.
That is definitely important, but it is profoundly important for Indian Software Engineers to develop an understanding of the Domain and build an expertise on a particular domain. otherwise the industry won't mature. India cannot have its own killer product.
For example :-
If you are an architect of a banking software, then, based on experience, you should be able to either modify, redesign or re-engineer your solution in a new company. You should be able to lead a team of, say, 40 engineers and direct them to your solution.
With frequent switching of domains, I'm afraid, we won't gain the domain knowledge to call yourself a true designer/engineer. We can't even dream of becoming an architect who conceptualizes and gives a life to the product.
Moreover in the Indian Software Industry, for technical people, the corporate growth ladder is very vague , unlike his counterpart who has a flair for management. We wont have many architects, if they are, then most of them are namesake guys.
But Most Software Professionals I know, get dissatisfied by /frustrated by /bored of their job in a span of 3 years. They find/invent reasons and move out.
Thats why I state this rule
At least 70% People in working Software Projects move out withing 3 years quoting some excuse (which may be valid)....They may move out to higher studies/ America/new job etc
Now the big question is :-
How long does this shift(from India Services to India Products) happen ? How long will our domination in ITeS remain ? What if all these outsourcing jobs move out to China (sob!) ?
How long will it take to have 100% Indian Product Software Companies delivering killer apps ? How long will the Sales guys try to invent ways to keep the monies circulating (instead of stagnating) ?
We do have a massive Internet muscle. We showed how patriotic we were when we wanted Taj Mahal to be the new7wonder. Now why dont we have an Indian Google or a Inaian Yahoo like baidu (the google of china....for china...by china...to china).
Time will tell...I am cross-eyed.....Let's wait and watch... And there are rumours of a 6day working week .... hahahah....