Tuesday, July 28, 2020

Small consultancy units and Freelancers should unite rather than compete

The present domination of MNCs in getting the maximum share of big projects in India can become a threat for survival of small independent consultancy units and free lance workers, as the MNCs have power to attract customers and have plenty of financial resources for employing experts, spend on  advertisement and well managed administrative setup. They also create fear about legal and security problems in the minds of customers who are using local services.

IT industry is the first target of such MNCs as majority of services can be provided by global support with very low cost or even free, high quality and with lot of tempting offers and discounts, which are not affordable for  small players to offer. As these MNCs have similar service centers at multiple locations they can balance the demand supply disparity by reallocating the resources. They also attract expert manpower from small units by offering lucrative salary packages and perks.

Big projects require large manpower, research and development and multi level and distributed planning of activities.  Govt. at Center and State and other semi-government agencies who are proponents of big projects generally rely on such MNCs for successful implementation of projects. Even Dnyandeep Infotech lost a good client Kolhapur Corporation where the company had secured 2nd prize in Maharashtra state in Web Design .due to entry of HCL Indian big player.

This has resulted in closure of small units not only in India but the world over. Even in USA, majority of small units are on the way to close or declare bankruptcy due to such unfair competition.

Cooperation and consortium of small units is the only option to fight back and provide a sustainable and indigenous alternative to these MNCs.

India and particularly Maharashtra state has shown power of cooperatives in successful growth of industries and business. As the cooperatives have deep roots in society and the benifits go to all, they have sustainability and high acceptability from society.

Unfortunately IT industry has not yet adopted this course leading to precarious conditions of existing units, which are competing for small projects within themselves and trying to become subcontractors of dealers of MNCs with very low profit and dependency.

Dnyandeep Foundation has decided to create such a business model to provide equal opportunity of success to all small units.

Dnyandeep Infotech Pvt. Ltd. aslo will be considered as a separate small unit in this setup and has to compete for project allocation with other partners of Dnyandeep Foundation.

This is a dream for digital self reliant India and I hope such experiments should start at othe places also by relatively big and strong players having political or social backing.

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