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The new airlines and the old

7 Jul

AirAsia is the newest airline in Indian domestic skies and its creating some news about its promise of disruptive fares. I believe the largest low-cost carrier in Asia in terms of fleet size and passengers carried will have some affect in the industry here when it launches in October although it will focus in South India.

While reading about AirAsia, I went to this page on Wikipedia List of Airlines of India. Apart from the list of currently registered airlines, it also has a list of defunct airlines. It is a interesting reading with names like Himalayan Aviation and Indian National Airways which existed before independence and were nationalized to merge with Indian Airlines after 1947.

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Indian IT Companies changing strategy

29 Apr

The Indian IT companies are gradually moving from time and material contracts with clients to a outcome based pricing model. The change is with the aim to move up the value chain as the companies are finding it difficult to cope with the competition hotting up from the global biggies like IBM, HP, Accenture opening up centers in India and negating the cost arbitrage

advantage of the Indian giants as well as mid-size IT companies.

This has made the IT companies here like TCS, Wipro, HCL to rethink the way the conduct their business. They are now targetting non-linear growth from products and platforms as well as consulting and system integration in the effort to become partners for their clients and not just cheap sources of labour.

The graphic here sourced from the iGate website clearly shows the positioning of the outcome based pricing model by the IT Companies in front of the customers.

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Breakout Nations

28 Apr

I just watched a good discussion on the book Breakout Nations by Ruchir Sharma on NDTV hosted by Prannoy Roy. It was interesting to listen to young and talented Ruchir on how he has arrived at his list of nations that will stand out, the Breakout Nations as he calls it.Ruchir on NDTV

To arrive on this list, he has relied on his own  theories but based on actual data. The theories he has developed like the Four Seasons Theory discussed on the show are a deviation from the theories economists harp on while pronouncing their complicated judgements. But clearly, the theories have a basis and clubbed with Ruchir’s insights developed during his extensive travels across the world as a fund manager in a top financial company add muscle to his views.Breakout Nations by Ruchir Sharma

The show also had Montek Singh Ahluwalia, Sunil Mittal and Y Venugopal Reddy. Some interesting views were discussed. One fantastic statement that was discussed which is also in the book was Sunil’s claim that he has not been asked to pay a bribe even once in all of the 17 African countries he is currently doing business.

Another interesting point made by Ruchir in the book which was discussed was that the businessmen in India are finding it difficult to invest in India which is resulting a flight of capital out of the country.  Continue reading

Spin-in

23 Apr

Spin-in is a procedure popularized by Cisco for getting products developed outside the company by a startup created by its employees using seed money from the company and then finally acquiring the company.

CISCO had successfully used this trick atleast thrice now – Andiamo Systems, a storage networking company, Nuova Systems, in which its core technology became Cisco’s Nexus switch after its acquisition by Cisco in 2008 and now Insieme which is focused on SDN applications. It is while reading about the Insieme acquisition that I came to know about this unique way of innovation followed by Cisco almost as a rule and successfully.

CISCO even has a trusted team of top engineers who have done the job for the company using the spin-in procedure of innovation in Mario Mazzola, Luca Cafiero and Prem Jain.