Not even the most pro-outsourcing American president can help if India’s fails to improve its infrastructure
Tyler Cowen noticed the obvious in Bangalore.
Bangalore’s infrastructure is unable to keep pace with its share of the expected growth in IT services and BPO. And Bangalore’s situation is not unique — infrastructure in many Indian cities is woefully out-of-date or pitifully inadequate. While telecommunications bottlenecks have substantially eased in the last two years, physical infrastructure — roads and airports — already impose limitations on the nature and the quantity of business that can be conducted out of India. Easing these bottlenecks is the government’s responsibility, but Indian industry must take every opportunity to induce its government to pay attention.
The electoral defeat of a candidate who gave a decidedly ominous ring to the term ‘outsourcing’ is perhaps good news, but NASSCOM and others must realise that the real threat to India’s leadership in global outsourcing lies right at home. Without getting distracted, Indian industry must hold Prime Minister Manmohan Singh to his promise.