Tuesday, December 19, 2006

Ecosystem India

ECO SYSTEM

$2 bn in 500 startup IT cos in India in 2000 all failures.

Reasons- bubble, Eco system

Serial Entrepreneur

50% of Indians are self employed.

50% of US exports come from companies which employee less than 50 people.

Journey from 1700

India = China = Europe = 25% of world trade

India China Europe

Because of British Raj, India’s self confidence was low.

Licence Raj low quality

Foreign funds are being leverages by Indian companies

Today Sunil Mittal can compete with Hutch

TATA buyin company 4 times its size.

BPO is only 0.2% of all transaction so a lot of scope still there in this sector as 99.8% is still unexplored

1/3 of IT exports are from BPO today

Indian issues

IPR will be difficult in next 5 yrs

Regulatory Issues

Create environment of Entrep’ in India

US students find something big wannna earn money out of it

India students write technical papers and wanna do PhD

US China in 1980s

Low cost advantage produces here and sells in US

US India – Indian entrep are working

Indian people are not bad, great quality but there is a gap.

Services – skills of people required

Manufacturing – No skills required as skill are embedded in machine.

Services in India 52% in GDP don’t go by the name as there is high value added work and low end work too like housekeeping

In India IT companies are doing great –

  • Wellingness to acquire overseas firms to support Indian operations
  • Relentless mgmt experimentation to achieve successful coordination
  • Returning NRIs to make global firms.

Foreign MNC are like subjects of big empire, they will look towards HO for decision rather then market.

India don’t lag talent but execution

70-80s bodyshopping in India and work abroad but trend changing now.

China has a poor IP capacity

VC only new venture of large size

Angel investor can invest in low investment companies too

PE only existing companies

Low collaboration between industry and colleges.

Tipping point for Indian companies was reached in 2000

No comments: