6:30 PM | Author: Siva
For a person spoiled by Google Finance using MoneyControl is a nightmare. But looks like there are very few alternatives (Are there any ?). ICICIDirect is another website that comes to mind which is in a similar state with regard to the usability. So the question : Why will these companies try to do development in-house, looks like e-eighteen in MoneyControl case, when they can outsource ?

I know that typical trade-offs of in-house development vs outsourcing apply in this case. But in the Indian context it appears very few companies outsource. Why ? Can availability of cheap developers lead the management to believe they can do it as well as the IT shops but cheaper ? Is it because of the low quality work of these IT shops ? (See Ravi's blog for a discussion on the quality problem) Any other reasons why outsourcing is not that common in this context ?
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6 comments:

On 1:46 AM , Sarangan Rajamanickam said...

Well,u said the reason in the post itself. It is the cost.

For a Indian Company, it would always be cheaper to get the work done directly instead of outsourcing.

But,the quality???? Honestly,the quality could be better if they do it inhouse. But, they have to really concentrate their resources on that part. But,lot of companies donot provide enough funding for their it departments so getting a good product is very tough...

 
On 3:24 PM , Siva said...

If the reason is just cost then at least a few companies should side with quality in the cost vs quality argument, right ? (assuming outsourcing will improve quality). Why don't we see that happen ?

 
On 3:29 PM , Siva said...

And I don't think in-house development will lead to better quality in this context. These companies (which are not traditional IT companies) will not be able to compete with the top IT companies in hiring and retaining talent. You can see what happens to quality.

They probably won't be able to scale too.

 
On 7:10 AM , Seenivasan said...

Another observation is that most of these Indian sites have displayed lots of advertisements which makes reading tough.

I think not many companies go for inhouse development. May be the companies purely dependent on e-commerce might have their inhouse IT team. Many companies whose core competency is not IT do outsource to the IT players.

 
On 6:55 PM , Siva said...

Both of you are saying they do outsource. I will take your word for it.

And please don't get me started on the ads. They are so annoying.

 
On 11:27 AM , Karthikeya Arasan SV said...

Check out the "About Us" link in money control to get a background on money control evolution.

Check out e-Eighteen.com website, It looks pathetic, I am not sure whether this is the correct website. But if they are the parent company then current version of money control is great. : )

The site is focusing more on ads and not on content or usability. Probably the website team (or company) is struggling to scale up and having their own business vision or strategy.

There is lot of difference between "Outsourcing to India" and "Outsourcing In India". Former runs with low cost effective model and global delivery model, predominantly IT Services. Later is not cost effective and its expensive. Moreover Talent pool is always attracted to former than second.

For quality product or service in IT, Outsourcing To/In India costs are almost same, but which country pays makes the difference.