Since my return from melbourne all work related activities has been concentrated on IT consulting for SME sector. Working with cyberica which manages portal projects for major SME sector associations like NSIC India, FISME, FICCI.Has made me realize how people in SME sector dont appreciate lack of knowledge. By this i dont mean they show disrespect to knowledge but they take technology and for guaranteed.Mainly they believe IT consulting is free only development comes at a charge.
Most of these organizations believe time spent in understanding their organization process and re-engineering it to suite IT enviornment and help increase productivity comes for free. Misconception due to the fact most of the people know developers which work for organizations like infosys,TCS,satyam etc. These people are developers,solutions architect based on business problem defined by business analyst sitting on-shore near to client. This has made them believe one-fit to all solutions exist and what companies need to get paid is for development of custom application. On oneside the call it custom application development but on other hand they talk about what will be the solution development cost.
So where do IT companies go wrong.
# Tendency to do process study for free before actual award of project
# Trying to map domain knowledge of one industry to others.
# No specific specialzied domain practises setup in organization to keep consulting charges to low for customers by following unified research for benefit to all customers.
If we have to add a new component to a clients website. Even if we spend lot of time thinking on usability aspect or making end objective more clearer through way of software. end of the day the pay scale doesnt tilt in favour of provider. On the other hand general conception is its taken for guaranteed to perform to higher level of satisfaction. Though competition in market is high but indian industries when dealing with IT companies still calculate pay worth on development charges based on following metrics
# Size of an organization
How good and complex your solution maybe. But lets say if you are <10 people organization according to client. You are not good enough to command high price.
# Benchmark on what others are paying in industry
When we goto colleges in delhi. We hear some colleges are paying 30,000 INR to get their sites up and others paying upto 3,00,000 Lakh. There is another lot which is just dependent on their computer science faculty standing up to take incharge. Ideally none of the colleges are trying to understand once they are engaging an IT consultant for even a website. Time has changed when it was just matter of pressence. With connectivity of more people day by day to internet it becomes more viable for them to view it as a tool to enhance productivity by means of better student interaction and collabration. On the side also look at cost reduction technique in administration departments. Generally clients we get are second-hand as in gone through hands of some other IT consultant before…mostly suffering from low delivery standards set and lack of consulting approach to solve problems at organizations. Lead them to negotiating with us for lower value to delivery.
For IT consulting to evolve people in the IT industry first need to start value their own expertises. This will help them to differentiate their organizations from the one being run by 2-3 designers/developers just out of NIIT
I am also interested to hear from people who believe in setting up joint research facility where both the organizations can contribute equal amount of resources and work together on commericalization strategy. This will lead to increase in technological innovation and help in solid IPR value creation.
Would wait on comments on this one.