In an IT competitiveness study commissioned by software industry association Business Software Alliance (BSA) and conducted by the Economist Intelligence Unit, the US, Japan, South Korea and the UK ranked the highest among 64 countries in terms of IT competitiveness. The study evaluated countries on factors like skill availability, pro-innovation culture, world class technology infrastructure, a robust legal infrastructure, government support and a competition friendly business environment.
India gets slotted at 46. Don’t tell me you are surprised. I’ve been crying hoarse about India’s IT illusion here, here and here.
To stay ahead in knowledge industry, of which IT is a force to reckon with, significant investments will have to be made in R&D. Indian companies and the government have conveniently ignored strong signals coming from several quarters that cried for innovation. Low end BPO vendors were painting a picturesque landscape as much as labor arbitrage and a weak Rupee would permit and a smug industry got even more arrogated. When the tide turned and both wage cost and Rupee appreciated, the mask got brutally lifted and the naked reality that hid behind the scenes began to look ugly; very, very ugly.
With tax benefits too on their way out and global majors already settling in, Indian Government and its IT industry should quit blowing sunshine up its ass and get its act together. Not for growth, for survival that is. What do you think?