Monday, June 26, 2017

The plight of Indian software industry with a short story

BE vs BA Fail 

Ramasamy completed and joined a MNC during Campus Recruitment. CTC 4 lakhs. His Relatives & Family friends wished him success. Ramasamy's face glowed like Petramax light. He thought to himself " From today onwards every day will be happy."


Madasamy, Ramasamy's neighbor failed BA. All his relatives & family friends blamed him. In Hyderabad every one is a but Madasamy was not even BA! Madasamy received suggestions to eke out a living by selling Idly, Dosa…. Pan ...or sell Milk… His Father was much embarrassed. 
Now what to do…? 
Madasamy asked his mother ₹ 2 lakhs and borrowed ₹2 lakhs from an uncle, bought buffaloes and started Milk Business.

Ramasamy used his credit card to purchase a motorcycle , commuting each day to office. Madasamy on TVS with Milk Cans also started to sell. Ramasamy proudly said ‘Hi" to Madasamy. Madasamy with embarrassed look muttered Hi . & each attended to their respective duties.

6 months passed .....
Ramasamy re-paid 20% of the motorcycle purchase money.He still had to repay ₹80K. Madasamy cleared ₹1 lakh out of his ₹2lakh borrowed money. When Both met Ramasamy gave a small smile ,thinking of his debt of 80K. Madasamy also smiled reminiscing about his remaining loan of ₹ 1 lakh

1 year passed by....
Ramasamy had high hopes on a salary hike. Suddenly due to recession company mailer informed all employees of no hike. half liter of milk increased in price to ₹14/-from ₹10/-.This profited Madasamy by 30% and helped him pay the remaining₹ 1 lakh loan amount. 
By now, with difficulty Ramasamy cleared his Bike loan and took a personal loan of ₹2 lakhs @ 16% interest. Ramasamy bought furniture, LCD, LapTop with loan money. Every One applauded Ramasamy as he had purchased these accessories in just 2 years time.Now Madasamy with his business profits bought 12 more buffaloes. His income doubled.
Again both met. Ramasamy gave feeble smile thinking about his Persoal loan. Madasamy gave a big smile since he was debt free.
After 2 more Years Ramasamy got a 10% salary hike. He then bought a Maruti Wagon R car through a Car Loan. Mean time Madasamy bought 2 acres land for his 3 dozen buffaloes. Milk Prices increased by 30% again. Now Madasamy was earning 200% more than Ramasamy. Madasamy owned one Auto to sell Milk. 
 Once more both faced met. With Loans and accruing Interest Ramasamy was unable to smile. g Madasamy smiled merrily driving his own Auto.

2 more years passed 
Ramasamy applied for ₹40 lakhs home loan and bought an apartment. Madasamy's buffaloes numbered 126. Madasamy bought 2 apartments. Ramasamy got 10 more percent salary hike. Milk price crossed ₹ 40per liter now. Total income of Madasamy was 500 times that of Ramasamy. 
Madasamy owned 1 Skoda and 1 Innova Car. Both met again
Ramasamy grimaced struggling to clear ₹40 lakh loan. 
Madasamy smiled ear to ear since he owned a medium sized Milk Factory with more than 170 buffaloes and 25 workers.

That night Ramasamy was in deep frustration. Because after 5 years Madasamy owned ₹4 crores , had a monthly income of 5 lakhs & provided jobs to 25 workers. Ramasamy's salary is 7 lakhs p a with ₹40 lakhs debt & unbearable job dissatisfaction This was the Balance Sheet.

Facts: In 2008 Milk was ₹10/- litre. Now ₹40/- litre. Gold ₹12500/- 10 grams, Now ₹30000/-. In the last 5 years salary hikes for software professionals was just 30%. All commodity prices increased by 300%. Still most Indian parents think engineering is the only worthwhile profession for their wards.

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