A discussion about the software industry and their coders

This post continues from my previous post Apple Computer Inc. Scraps Call Center Plan in Bangalore where I had explained why Apple's (AAPL) decision makes business sense:

1. To make a Call Center financially viable, Apple Compuer Inc.'s Call center would need atleast 500 employees (according to NASSCOM). Since Apple has a small Macintosh customer base in India (primarily publishing & creative users); some other country might provide a better business case for an investment by Apple.
2. Apple Computer Inc. also has tied up with HCL Infosystems for iPod distribution and customer support -- so the Bangalore based call center would not be useful for Apple's growing iPod business.

The decision, it seems, has nothing to do with anti-India lobbying that is being run by some organizations in US. The two main points these lobbyists are raising are:

• Job Losses in US
• Purported, low quality of technical support provided from some India based call centers.

In fact in its March announcement, News.com had quoted an Apple rep on its Bangalore plans:

"Apple has gained millions of new customers in the past year, and we are building a call center in India to help meet our growing service and support needs"....The company stressed that it isn't cutting any U.S. jobs, noting that its ranks are growing both in the United States and overall. "Our call centers in Austin and Sacramento also continue to grow," the Apple representative said.

The iPod and Mac maker also promised that the quality of its support will not diminish with the new effort..."This call center will be managed and staffed by Apple employees with the same award-winning service for which Apple is known around the world," Apple said.

I therefore consider Apple's plan to not to continue building a call-center in India a good move. Sound Business Cases not "everyone is going to India, so we should there" -- be the foundation of investments in India. Though some people may criticize Apple Computer Inc. or even jump around looking for an "overall pattern -- something is wrong with the India growth story"; I don't think that there is either a conspiracy or a break in India's growth story. India will continue to march on. And, a few years later Apple might have a better business case to build a full-fledged R&D center in India, instead of just a technical support center.

When sound business cases are not made, and plans fails -- everyone tries to blame lack of facilities, missing manpower or weak Infrastructure in India as the causes of failure -- instead of the weakness of business planning.

Note: Apple's Sales & Marketing office in India continues.

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