Another interesting blog posting from Ben Worthen and WSJ. An Outsourcing Boss Speaks Out provides some insight into Satyam's (and other Indian outsourcing firms) strategy and approach to winning business.
None of the approaches listed are anything new...Lower cost is still their primary differentiator. I think what bothers me more than anything is the cavalier attitude Mr. Raju has toward his U.S. competition. As a matter of fact, I would even say that he does not consider U.S.-based consulting firms competition for the work being done in India.
But these firms are venturing beyond the price differentiator. In what is, in all honesty, a smart business move, oursourcing firms are relying on the appropriate nationalities to help sell their services. He states that Satyam "make(s) sure that employees who interact with customers are from that customer’s home country. Most of the employees in Japan are Japanese, and many of the ones in the U.S. are American. " This definitely has an 'Invasion of the Body Snatchers' feel to it.
Look for these firms to gain ground on U.S. based consulting firms in areas other than just coding. As the blog article points out, the Rupee's gain on the dollar is forcing many Indian-based firms to move toward more senior, higher-margin service offerings.
So what does this mean for the Enterprise Architect role? Right now I would have to say that this position is minimally affected by the outsourcing boom. I invite others to opine on this subject. Obviously you cannot outsource your architecture. But as stated above, these companies are moving from low-margin coding work to higher-margin services. They are moving beyond the technology and providing consultative services within the business layer.
Perhaps we all need to be looking over our shoulder.
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