Just found - I am quoted in this book titled "Cases in Business Marketing", Published by Tata McGraw Hill 2013 Chapter 6 page 103 . "Indian OPD Industry orbiting its way to the core"
This has been taken from my column "Can we get an Indian Huawei?" published in FE 2011
Quoting G Krishna Kumar, Financial Express 2011 -
Eight of the world’s top 10 most innovative companies of 2011 are in the ICT domain, reports a US based magazine Fast Company. Not surprisingly, all of these are product companies. While India is the largest exporter of ICT services, generating revenue of $76 billion from the IT sector, but products contribute to less than 2%. India’s contribution to technology innovation is negligible.
The product companies witness non-linear growth (not proportionate to the head count)—the revenue per employee or profit per employee of Google or Microsoft is over 20 times that of India’s top services companies. Also, these technology giants serve as a beacon and are the undisputed trendsetters on the world technology road map.
Nasscom indicates that delivery model innovations such as SaaS and innovative revenue models could fuel IT product adoption in future.
BERD (business expenditure on R&D) and patents/IP management are key indicators of a country’s technology innovation capability. An EU commission report on ICT 2011 indicates that India lags behind China and other emerging economies in terms of BERD/GDP. While China has seen a 10-fold increase in the number of patent applications over the past decade, India’s contribution is insignificant. Generating IPs and protecting them is just one part of the story. Realising value from the IP is a different ball game. Appropriateness of the solution is the key.
This has been taken from my column "Can we get an Indian Huawei?" published in FE 2011
Quoting G Krishna Kumar, Financial Express 2011 -
Eight of the world’s top 10 most innovative companies of 2011 are in the ICT domain, reports a US based magazine Fast Company. Not surprisingly, all of these are product companies. While India is the largest exporter of ICT services, generating revenue of $76 billion from the IT sector, but products contribute to less than 2%. India’s contribution to technology innovation is negligible.
The product companies witness non-linear growth (not proportionate to the head count)—the revenue per employee or profit per employee of Google or Microsoft is over 20 times that of India’s top services companies. Also, these technology giants serve as a beacon and are the undisputed trendsetters on the world technology road map.
Nasscom indicates that delivery model innovations such as SaaS and innovative revenue models could fuel IT product adoption in future.
BERD (business expenditure on R&D) and patents/IP management are key indicators of a country’s technology innovation capability. An EU commission report on ICT 2011 indicates that India lags behind China and other emerging economies in terms of BERD/GDP. While China has seen a 10-fold increase in the number of patent applications over the past decade, India’s contribution is insignificant. Generating IPs and protecting them is just one part of the story. Realising value from the IP is a different ball game. Appropriateness of the solution is the key.
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