Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Wednesday, 16 November 2022

Services Export : the Silver Lining

 


Context :

Govt bets high services export can trim CAD   /  TNN  /  17  Nov  2022

 

 

Extract :

 

The government is hoping to narrow the current account deficit due to a continued increase in SERVICES EXPORTS, which rose over 40 % to $ 28.6 billion in October, according to official data

 

India has traditionally had a trade surplus on the SERVICES front , which has helped narrow the overall trade deficit.

 

What is providing confidence to the government is a pick-up in SERVICES  EXPORT at a time when merchandise exports are slowing down



During the first half of the current financial year, SERVICES EXPORTS have increased 31 % to $ 181.4 billion, while imports were up 37 % at over $ 106 billion

 


My Take :

 

 

Dear Shri Ashwini Vaishnawji – Shri Rajeev Chandrasekharji – Shri Piyush Goyalji :

 

 

Even as we continue our efforts to make India a Manufacturing Hub for entire world, I urge you to :

 

Ø  Leveraging our Engineering Talent …………………….13  Dec  2018

Extract :

But , if “ Manufacturing Sector “ and “ Service Sector “ were two horses in the

 GDP race , I would bet on the “ Service Sector “, especially from the following

 view-points :

 

        #  “ Capital Investment per Job created “ would be much lower ( may be 10

              % of  Mfg. Sector ? )

 

       #    Jobs created would be much higher  ( may be 5 times of  Mfg sector ? )

 

       #    Time ( to create those jobs ) would be much shorter ( months instead of

             years )

 

  #     Export of  “ Services “ are much easier than export of  “ Goods “

 

      #     Quality of our “ Services “ are comparable – or even better – than from

             other countries

 

      #     We will , soon , have the desired quality / quantity of Internet connectivity ,

             all over India

 

      #    We are turning out thousands of Graduates  each year though some need “

            Skilling “

 

      #    Salaries of our Engineers are 20 - 25 % of similar hires in USA – EU – Japan

             – UK etc

 

 

Ø  Brain Inc 2.0 ………………………………………..21 Aug 2017

Extract :


Now consider this :

  

·         By employing 5 lakh engineers , India’s “ Tech R&D Firms “ earned $ 22 billion

          . That works to a billing of $ 44,000 per man-year of R&D ( Export of Services )

 

 

         

           I presume that the “ Manpower Cost “ constitute approx. 50 % of Billing Rate

           ( rest being OVERHEADS and MARGIN )

 

          

·         Hence , Indian R&D firms must be paying an average of $ 22,000 per year to

          its employees ( approx. Rs 1.2 lakh per month )

 

             { Refer :  Employee Expenses as %age of Sales   /   05   July   2022 }

 

  

·         As against this , both , Indian as well as American firms pay ( on an average )

         , $ 88,000 per year to H1 B  visa holders

        

      With this kind of “ Cost Advantage “ , is there a possibility to do better than

      the projected earnings of $ 40 billion in 2020 ?

 

            It is high time our Policy Makers launch a new initiative ( of Export of

      Intellectual  Property ) , called :

  

                     INDIA  :  the  BRAIN  FACTORY  of  THE  WORLD

 

 During an Interview with Business Line ( 16 April 2016 ) , the then CEO of Infosys

 , Vishal Sikka , said :

 

“ We have to re-imagine the notion of services 



In support of my belief  in the potential re-imagination of this “ Service Sector “ ,

allow me to quote Peter Diamandis 

  {  https://www.diamandis.com/blog/topic/web-3-0  ]  :

 

 The Spatial Web is also giving way to “virtual company headquarters” and

 

 completely virtualized companies, where employees can work from

 

 home or any place on the planet

 

·        Delocalize with VR, and you can now hire anyone with Internet access ( right

         next door or on the other  side of the planet )

                  

·        Web 3.0 is changing the way we work, where we work and who we work with.

 ==================================================

With regards,

Hemen Parekh

hcp@RecruitGuru.com  /  17  NOV  2022

 

 

Related Readings :

Ø  Can Indian IT Re-invent itself ? ………………………………….[ 03 Feb 2017 ]


Ø  Will Holograms beat H1B Visa Ban ? …………………………..[ 31 Jan 2017 ]


Ø  THANK YOU FOR YOUR VISION …………………………………..[ 24 Jan 2017 ]


Ø  Idea whose time has come ?................................... [ 16 Feb 2017 ]


Ø  Wormholes Across the World ? ………………………………….. [ 03 Mar 2017 ]


Ø  Ready to be Ridiculed …………………………………………………..[ 23 Aug 2017 ]

 

Ø          Vindication  must  wait …………………………………………………[ 18 Mar 2018 ]

 

Ø  Betting on BPOs ? …………………………………………………………[ 19 Dec 2018 ]

 

Ø  India BPO Promotion Scheme :  V  2.0………………..       [ 11 Apr 2018 ]

 

Ø  Gaining Ground : Virtually…………………………………………… [ 01 Mar 2021 ]

 

Ø  Services Export : the Saviour ……………………………………….[ 14 July 2022 ]

 

 

 

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