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Why Indian IT Majors Are Reluctant To Take Government Projects ?

Last June there was big announcement that UK Network Rail has Awarded IT Contracts To Accenture, Cognizant, CSC And TCS. All the four biggies were quite happy with bagging the project as the scale of such projects was huge.

 

Even in India there are many projects which are huge in scale however the IT majors are not quite enthusiastic about the same. Why? They have witnessed complete unprofessionalism at the part of government officials who often do not cite the requirement in full detail at the time of launch, then keep requesting solution tweaks throughout the project, on top of it there are delay in payment as the concept of milestone based payment structure  is alien to them.

 

Here are some of the excerpts from the media stories which are doing the rounds which further prove the problem which are highlighting.

 

“While earlier they would throw their hats in the ring for virtually every government project, even the largest IT companies are becoming choosy about the type of contracts they want to be part of. Infosys, for example, did not bid for a Rs 200-crore project to computerise the Debt Recovery Tribunal, India business head C N Raghupati said, because the company was seeking a clearer investment and execution roadmap.

 

Another project by the telecom department to set up a facility to test equipment for security vulnerabilities and spyware did not take off due to lack of clarity in the funding model and milestones. Many such government projects, including the DRTs, lack a clear process roadmap that defines milestones. As payments are typically linked to milestones, this results in delays in payments. "Major IT players have become more circumspect and are participating only in projects that are well-funded and have clear vision and can pay," said, Rohtin Bhattacharya, executive vice president who for corporate strategy at HCL Infosystems. "We have faced delay in payment from government entities and are trying to get our money."

 

Here are few quick important points :

 

The policy paralysis of the existing Indian government makes it tough to get even routine approvals within stipulated time.

 

Though RTI (Right To Information) has done a lot of good for India as a nation, however it has also instilled a sense of fear in the government officials and hence they sit on decisions instead of taking it as every decision can be brought under scrutiny.

 

In most cases, Government  officers don't wish to have computerization, which creates difficulty in executing projects at ground level.

 

IT People are not trained on how to deal with such kind of bureaucratic approach

 

The existing infrastructure is in such a poor stage that any IT company has to really dig its heels very deep before it can actually start delivering on the assigned projects.

 

As the cliche goes it is high time the Government must pull its act together and work on creating a performance based decision making environment and lead the country on it much awaited path of development.

 

Did you come across such a problem too? Share with us we will be happy to investigate and highlight the same.

 

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Tags: It-outsourcing, bpo, call, center, india, off-shoring, outsourcing

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