NAFIS, Shabbir Husain

Learn, Develop, Share and Grow – Webjournal

Is Indian IT there yet?

with 2 comments

India must have, never been so talked about, amongst the VC circles as it has been lately. There is an ever increasing number of highly experienced, seasoned and educated mass of Indian software engineers who are daring to start a software firm of their own, spinning off from their comfort zones of a normal day to day job, availability of talent, broadband penetration, telecommunication infrastructure, growing importance of the wireless world, and a huge consumer market, all are attracting a lot of VC investments.

The companies which have made it big and are riding the growth curve, are a great source of inspiration and learning for aspiring enterpreneurs. They also further help, strengthening the trust which the VC’s have on the Indian market. This in turn is leading to more software companies and more investments.

As Pramod Haque points out, the Indian software company surely has moved from the Y2K services to outsourced software development/integration services to outsourced product development. And now India stands at a phase of coming up with highly innovative ideas of their own for the world as a market.

However, most of the companies (atleast in the web or internet services space) are replicating the successful and proven internet business models which are prevelant in the developed countries viz. travel, dating sites, matrimonials, classified, e-commerce sites etc.. And I am sure this will also give the VCs a lot of comfort level too. No doubt that some of them surely are very successful and that they are creating a lot of value for the indian customers.

But my concern here is that, these successful companies are still kind of not innovating a lot, as they are cloning proven business models or internet services. Sure they are creating value in the Indian market, but from an Indian IT industry stand point, can we boast of a technology, product or a service that is purely and entirely “Made In India” for the world. Aren’t we cloning existing models, using created technologies and serving corporate America still? Yes one would say, it is a win-win for all as of now, for the companies, VCs and Indian consumer base, but is this the grand prize for the Indian IT industry as a whole.

This is in no way to undermine the acheivements of the Indian IT industry – we have done a great deal !. But are we there yet in terms of creating a highly innovative technology, service or a product, which the world recognizes and uses? How far are we from that stage and what is the most likely trigger?

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Written by shabbirhusain

July 18, 2006 at 2:42 pm

Posted in Indian IT Market

2 Responses

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  1. One of the areas i can think in term of pure technology where we can innovtae rather than copy idea from west or trend, is mobile phones. Mobile phones as a platform for innovation is huge, esp in poor countries where mobile phones are capturing market in huge nos and this is where one of those opportunities lies.

    One of the key issues with India IT industry is to follow what is already huge in west esp. US and Europe, we have not been inovative, i think with more money coming as part of FDI, India has to spend in R&D, which will lead to innovation locally and than take that globally, but making it global will be very tough.

    Vishal

    July 30, 2006 at 6:40 am

  2. Hi Vishal, it needs a change in attitude and approach. We have been busy replicating successful business models of the west in India, but having a mind set of R&D is a different ball game altogether and is surely going to take some time.

    Mobile space is surely an area where there is a lot of traction.

    shabbirhusain

    August 2, 2006 at 12:12 pm


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