Losing faith in Indian IT

Despite India's efforts to remain attractive to businesses overseas, faith seems to be crumbling on the home front.

In a recent debacle, India-based Jolly Technologies suffered a security breach when one of its programmers emailed herself a vital source code,
[ Source code stolen through Yahoo e-mail ]
and the code was stolen and sold off, leading the company to shut down its operations. Jolly Technologies proceeded to file an intellectual property (IP) theft suit, but to no avail.

See:
India Ill-Prepared To Protect Outsourcing Firms

At the moment, India simply does not have the right IP rights laws to ensure protection for Jolly Technologies. The Confederation of Indian Industry (CII) also says India is in an 'unsafe IT network environment.'

See:
India Inc in 'unsafe IT network environment'

But these are not the only problems. It seems India's premiere IT firms, particularly the ones based in Bangalore, are losing their appeal.

IT firms are threatening to leave Bangalore and set up shop elsewhere in the country because of the region's "poor infrastructure, irregular power supply and increasing taxes."

Nonetheless, large companies continue to be interested in India. SAP, the global business software solutions major, announces that it plans to offshore projects to India.

Also, National Savings & Investments (NS&I) has extended its contract with Siemens Business Services for another 5 years. Among the proposed moves is the offshoring of new small administrative tasks to Siemens in India, entailing no job loss or site closures in the UK branches.