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In
the West when organisations bid for large projects they launch extensive
PR strategy. MOHAN BABU writes why it is imperative for Indian
IT companies, Nasscom, and the government, to lobby internationally
for billion dollar global projects
There
was a recent news article titled, “Indian tech icons may join
forces to bid for $10 billion orders”. That caught my attention.
The article talked about a huge opportunity opening up in the IT
sector and went on to add that “top Indian software companies
may come together in a rare show of unity and bid jointly for two
potential outsourcing orders that total $10 billion.” Ten billion
dollars is a huge amount. Even if spread over a decade or 15 years,
it is enough to make most global IT giants drool.
By
Indian standards, ten billion dollars is a mind-boggling sum of
money, especially considering the fact that among the largest orders
bagged by Indian companies so far are the $60 million General Electric
(GE) order to TCS, and a $70 million order from Lattice Group (of
UK) to Wipro. Note, a billion dollars equals one thousand million.
At the current rate of exchange ($1 = Rs 48), a million dollars
is about Rs 4.8 crore. A $10 billion order will amount to approximately
Rs 48,000 crore (give or take a few crores). One can only imagine
what an order of this magnitude could do to the Indian IT industry
and even the economy!
The
two outsourcing orders in question include a six billion dollar
order from the German Army and a four billion dollar project from
Procter and Gamble, which may take three or four quarters to finalise.
Even if a consortium of Indian companies fails to bag the project,
it is expected that any global player (like IBM or EDS), that bags
the deals will definitely have to outsource “pieces” of
the project. A good percentage of such outsourced work will come
to Indian companies. Indians stand a good chance to win such outsourcing
projects because we have already been successfully demonstrating
to global players that we are an IT outsourcing destination worth
serious consideration. Global players are also aware that Indians
are familiar with state-of-the-art international outsourcing models
and are comfortable dealing with them.
In
the West, when bids for projects, especially of this magnitude come
up, an unobtrusive political and industry lobbying effort is kicked
off. Companies seriously bidding for projects undertake massive
public relations campaigns, taking the media, the public and the
governmental sectors into confidence. Even the government steps
in with senators, congressmen and ministers lobbying hard. Lobbying
beco-mes easier because the policy-makers realise the direct impact
of large projects on revenue, foreign exchange inflow and employment
opportunities for locals. They do need special “incentives”
to lobby for their constituencies. Companies in the West also get
industry associations and groups involved in the lobbying and PR
efforts. In short, a background mechanism is unleashed to ensure
success of complex bidding processes.
Why
shouldn’t Indian companies bidding for these and other major
projects muster the required PR and political muscle? We have two
popular and powerful industry organisations—the National Association
of Software and Service Companies (Nasscom) and the CSI (Computer
Society of India)—that have tried to become the voice of Indian
IT. Although these organisations have been doing a stellar job of
lobbying with local and national governments to ease the bureaucratic
hurdles for Indian IT and high-tech companies, they still have a
long way to go. They need to take on a bigger role, especially in
the international arena. By this, I do not mean they should be content
with just a few interviews with “international” magazines
and journals or send a few “delegations” on junkets to
the US or UK.
The
current downturn in the global economy, along with the crash in
the IT sector, may be a blessing in disguise for Nasscom and CSI.
As long as the market was good, everyone was content to let the
IT sector ride in an autopilot mode. Gone are the days when the
global shortage of high-tech people ensured an automatic spillover
of work to Indian companies. Now, with the global marketplace getting
more aggressive and competitive, Indian companies, industry organisations
and the government (Department of Information Technology), need
to join hands and plan for a visionary strategy. Tough times call
for tough measures.
The
strategy needs to be multi-pronged, covering all aspects of Indian
IT, focusing on our strengths and marketing us as a global player.
We need to learn to eulogise the success stories of Indian companies
who have consistently delivered quality solutions and projects on
time and within budget to international clients. Taking NRIs and
global Indians into confidence, they could also launch a subtle
PR campaign. Of course, taking the Ministry of Information Technology
into confidence will help Indian players lobby in the international
marketplace where government-business nexus remains strong. There
is a need for Indian IT leaders to take on a statesman like role
in the international arena. This should become a part of our overall
IT strategy.
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