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What work software companies do?

Think of India and ignore software companies? You cant, even if there are no major software products coming out of India, the sheer number of software engineers is something to write about. But what do the 43,000 software engineers in IBM, India actually do? The answer is no straightforward, IT Industry is too big, and it actually works for all the industries you can think off.
Lets go from the basics. Any company, which wants to manage its day-to-day operations like production or sales using computers, would need the following and accordingly companies need to provide similar products/services:
1) System Software Products, which will run the computer, like operating system, yes Microsoft makes them under the windows brand. There are servers like database server (Oracle, DB2 (IBM)), web server (again Microsoft and IBM Labs). All these companies have presence in India but not much of work is done in India, though the trend is changing and companies are fast moving development work to India, after gaining confidence in Indian workforce and in a bid to minimize costs.
2) Application software like Oracle Applications (business suites including packages for Finance, HR), SAP, and i2 (supply chain management). Most of these companies have moved a part of their development work to India. All these products need maintenance, testing and development of new features to survive the competition.
3) Now comes our own homegrown companies like Infosys, TCS. After all we need someone to implement and maintain these products. There are also migration projects say from PeopleSoft HR to SAP HR, or Oracle database to DB2. These companies are called Services Company as they provide implementation, maintenance and migration services to other companies. Globally known software service provides include IBM Global Services, Accenture, EDS, CSC and ADP.
There could be several other classifications there are few more, which deserve mention. But first define what is outsourcing? Outsourcing could be Toyota taking help of a company like ADP for its payroll services, or DHL taking help of Infosys to manage its IT operations. All these makes sense as the company can focus on its core area of work. Outsourcing is a widely accepted business practice though we mostly hear it connection with work being outsourced to India’s cheap labor.
a)Technology consulting -> Companies like Accenture and Deloitte are moving towards technology consulting which is nothing but designing large scale enterprise architecture and technological solutions.
b)Outsourced product development -> Product development is a costly and risky affair which has forced many companies including Yahoo, Ebay to outsource a part of their product development to Indian companies like Aditi Technologies, Tekriti Software.


India-Rising said...
This comment has been removed by the author.
India-Rising said...

Its true that many IT companies in India are still doing outsource B- grade work which is here only due to cost advantage. As a business this is a booming area, companies like IBM has started shifting more focus to services, this supported by the fact that they going to hire huge nos to increase their headcount to 1.25 lakhs. But this is not the end of the road, If we see the quality of work, many company like google, yahoo, microsoft, Dell etc is moving their R&D to India to tap bright talents. In all these growth of Indian IT industry, Indians still lack in creating sth new or building world class product. To create a Google/Microsoft we still need to channelise our resources and become a more risk takers.

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