Vijay Anand | The Startup Guy.

India, an option for Global Entrepreneurs

Posted on: December 18, 2007

A friend of mine and I, had this elaborate discussion on some of the advantages of actually being in the valley. Well, Thomas Fieldman is proving himself to be right with the globe turning more and more flat as the years pass by and I am quite positively sure that position holds not that much of a relevance and trumph card anymore.

As it is, I understand that most startup projects that are happening in the valley are being outsourced to companies here in India to be developed. The reason being cost and the availability of talent.

The fact that the dollar is dropping, added to the fact that the ruppee is appreciated is really not helping the case. In most cases, apart from the added headache of managing your team remotely, your cost also ends up being the same. What is even more empathetic is that most of these silicon valley companies end up handing their product developments to companies that probably aren’t the best of the breed when it comes to development – the biggest issue when it comes to outsourcing.

I am all for outsourcing service-related work. Management of networks, servers and mindless crunching of data and numbers seems to be a valid point, but would a startup want to outsource its most crucial asset – the product itself? Hmm… I am not sure if thats the right way to go.

So, what does a startup need anyways?

Access to the market, capital, human resources and the depth in a market to build a product that actually makes sense. An entrepreneur from the valley will always have his roots there, and does have the liberty to fly to and forth, along with taking advantage of the evolving business models of the east.

Being a global entrepreneur, might be the trend of the future to match up with the world becoming flat.

I question, Why don’t most of these silicon valley entrepreneurs move to India anyways? It might not be the way to go as the business scales up, but for being on bootstrapping mode and to get a product and team together, I strongly believe that India is the way to go. If you are the next Mark Zuckerburg trying to build the next big thing, India is very much the place to be.

An elaborate post on this, is soon to follow.

4 Responses to "India, an option for Global Entrepreneurs"


Riya tried this out.. the scale of economics is just not feasible yet !!

Holistically, I can see your reasoning and agree with the long term vision. Startups can mobilize in India..but having a core team in the west coast and then dev team in india. is just NOT working out. Secondly, you need to go back and review your post on incubation and mentorship. Startup’s need to move that bold move to remove themselves from the string that tie them into a position of weakness. (incubation theory) However, that again will negate series funding and advisory committee’s are not conducive to their funds being driven by passion and vision alone.. let alone in another country.

Global Hedge fund mobilization in India is what is needed…

Riya tried to scale up and run their full scale operations with an semi-India: semi-US setup. I am not sure if that sort of an ecosystem is in place yet to make such things work. We still have to deal with timezone issues that eventually get to the team.

I have a reason why I am mulling over these thoughts and I hope to be more vivid in words in the upcoming post on the same, but what I am essentially wondering on are these:

1. Given that we do not have the ecosystem to come up with advanced computing services (not that much infrastructure available for rough prototyping) – I still know of a company that is waiting for their prototype silicon to arrive, after six months from taiwan.

2. There are a lot of VC firms which are saying, dont build anything that relies on cutting edge technology but focuses on re-usable technology. Does that mean, we are going to be churning out solutions, rather than products for the next couple of decades?

3. If that is the case, we end up becoming more of a consumer market for commodity technology from across the globe, till we get our plants in place, which still doesnt help the issue of strengthening our economy.

4. Most importantly, does that mean it will be a few years before start churning out Intellectual property?

5. Would an alternate be that linking up with a person who frequents the US, or set of agencies, so to speak can liaison between companies and markets – just like the role that trade links did in the days of caravan travels and such?

Oh, and did not know about it. Thanks for the information …

Seems like a much heated and interesting discussion is going on, on the same topic at venturewoods

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