Re: American tech needs a paradigm shift
You raise excellent points here(regarding the Changing nature of IT Business Globally).
I really liked what you had to say here especially-
If you hire a consultant (or a contractor from a firm) they have to pay top dollar to the talent and then they have to charge you OVER top talent so they make a profit. This worked fine when top talent was available for cheap from all over the world. As salaries rise in many developing countries, it isn't working. So now, you hire the top talent directly and save the premium.
Just thought I would share with you something about the industry that I read recently.
The First was a story about TCS[The World's Largest IT Outsourcer today-They employ over 300,000 people Globally].
For the first time in Decades,they dissapointed for Profits as well as Revenue.
When the CEO was questioned aggressively about why this happened he said something very,very interesting-"The Days of High-Double Digit Growth for the IT Outsourcing Industry are over Globally."
Consumers have become more demanding especially with respect to Cost as well as Product offerings today.If you can't deliver something which is'nt available easily in-house they are just not interested in talking to You.
The other was from Wipro[India's 4th Largest IT Outsourcer];they have been dissapointing on results for a while now and they have said its time to implement a "Factory Model of Automation".
The Days of Simply adding more Headcount which translates to Rising Revenue are over.
In fact they plan to cut Workforce employed by close to 30% in-house over the next three years.
These two interviews clearly tell you that things are changing very quickly and rapidly in this space(especially in their desperation to stay relevant to clients key concerns/needs).
Innovate or Die is definitely the mantra here.