Wednesday, June 23, 2010

How Indian Entrepreneurs have circumnavigated Government hurdles to IT Development

The innovation revolution The Wall Street Journal
Emerging India has evolved from the world’s back office into a knowledge and innovation hub. In the next decade, expect benefits for not just the nation but the global economy by Vivek Wadhwa
The ability of Indian entrepreneurs to rise above all the hurdles the government and society throw at them. Just as India’s companies install their own power generators to deal with supply problems and purification plants to provide clean water, they have built their own surrogate education system. And herein lies India’s greatest innovation: Its companies have developed the ability to take the output of a weak education system and turn these workers into R&D specialists who can compete in the global arena.

Faced with severe talent shortages, escalating salaries and a lagging education system, Indian industry had to rethink the way it recruited, trained, developed and retained its workforce. It started by adapting the best practices of companies that were outsourcing R&D to India. Then, leading companies in diverse industries started improving on these techniques and methods; refining and integrating them into a unified system.

With the economic slowdown, Indian talent supply has been able to catch up with demand. And Western companies are more desperate than ever to cut costs.

To achieve the 30-40% cost savings that Indian outsourcers can offer, they are now outsourcing their most strategic internal systems. Additionally, thanks to a combination of the recession in the US and that country’s flawed immigration policies, there is a flood of highly educated and skilled talent returning home to India.

They see more opportunity in India than abroad, and want to be near family and friends. They are returning with the latest skills and an understanding of foreign markets.

So the stars are lining up for Indian outsourcing, and this industry is gaining a second wind.

Within a decade, India is likely to become the world’s second-largest R&D centre after the US. Its innovations will likely benefit not only India, but also the world.

Vivek Wadhwa is executive in residence/adjunct professor at the Pratt School of Engineering at Duke University and a senior research associate with the Labor and Worklife Program at Harvard Law School.
Read the full article on how Government hurdles have been bypassed:
The innovation revolution

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