The Future of Indian Technology
I attended the NASSCOM Product Enclave in Bangalore, this week, and gave several talks to the 1000+ entrepreneurs in attendance. I was surprised at the changes that are powering the new transition: its tech workers are leaving high-paying jobs in IT services, and kids out of school are ignoring social taboos against failure and defying marriage customs to become entrepreneurs. A few Americans are also joining the fray, starting their ventures in India rather than in Silicon Valley. Though in China, returnees from the U.S. are fuelling the entrepreneurship boom, they aren’t as important in India. Sadly for my Indian friends in Silicon Valley who are looking to return home, returnees—formerly in high demand and treated like rock stars—are out of vogue and now treated like rocks.
Why are highly paid workers in an industry that does lucrative contract work for multinationals jumping ship? It’s the same dynamic as you observe in the United States. Entrepreneurs start their companies when they are, on average, 39 years of age. They have 10 to 15 years of work experience and ideas for products that solve real customer problems; they get tired of working for jerk bosses; and they want to build wealth before they retire. So they defy their fear of failure and take the plunge into entrepreneurship.
India’s outsourcing industry is about 20 years old and has hundreds of thousands of workers with 10 to 15 years of experience and ideas for innovative products.
At the NASSCOM event, I met dozens of tech-service industry workers who had become entrepreneurs. A surprisingly high proportion weren’t developing products for their former customers, but were instead looking inward to solve India’s problems. The one who impressed me the most was K. Chandrasekhar, of Forus Health.
But college-dropout tech entrepreneurs like Gondal are extremely rare in India. Most make the wise choice to complete their education before joining a startup. So far, the biggest inhibitor of youth entrepreneurship in India has been the social stigma associated with failure and the low social esteem bestowed on startups. In the arranged-marriage system—which is still the norm in India—a young male who joined a company such as Infosys or IBM would command the best marriage proposals, and those who took the startup path risked trading down. No longer. All of the young entrepreneurs I met said either that they had told their parents that they would find their own partners, or that their parents supported their decision.
It also used to be that nearly all the graduates of India’s prestigious Indian Institutes of Technology (IITs) would join investment banks or take senior positions in the outsourcing industry. Given the huge salaries these workers commanded, entrepreneurship was out of the question. Yet I met dozens of entrepreneurs who had left these institutions and were now risking it all on entrepreneurship. Two such are Pavan Thatha and Rakesh Thatha.
And it isn’t just the Indians who are seeing opportunity in India.
Valerie clearly has many great opportunities in Silicon Valley. When I asked her what a (white) gal like her was doing in a place like Bangalore, she smiled and said, “when all of the action is in Bangalore, who needs Silicon Valley?”
Editor’s note: Guest writer Vivek Wadhwa is an entrepreneur turned academic. He is a Visiting Scholar at UC-Berkeley, Senior Research Associate at Harvard Law School and Director of Research at the Center for Entrepreneurship and Research Commercialization at Duke University. You can follow him on Twitter at @vwadhwa and find his research at www.wadhwa.com.