A simple analogy is good to remember, as they say it all adds up..
Indian economy is 1/5th of the US economy...
There are 5 times more people in India....
What does this translate to?
------------- Let us say a 100 dollar pie, in India this would be a 20 $ Pie
------------ In the US, if 5 people are needed to make the 100 dollar pie they each get 20 USD
---------- in India , the 20 $ Pie is eaten by 25 people, so you get 80 cents per hear....
Now where is the incentive to do something that is a high risk low return job?
And think of the Interest rates at 10 percent, people would wonder why take the risk when I can make money with my cash in the Bank.
In the US, the interest rates are at the lowest, a stable dollar, it all helps...
Having said that we are seeing a lot of niche companies coming out of the stables..
Zoho is a perfect example, but think of it as an Indian company catering to US markets.... it is not feasible to sell the product in Indian markets?
Bancs, Finnacle and Flex (Though now Oracle, mostly home grown) have done well in the banking space.
We do have our own Flipkart or Myntra Snapdeal, Quikr, you may be wondering what it has to do with IT product companies? Well Amazon was a retailer and you now know what they do now other than retailing.
Once the economy is big enough, we would see more larger organizations. A billion dollar company was rare in India a few decades back....
http://10000startups.com/
Some of these initiatives are bearing fruits..
IT is just a matter of time. There is a good chance "Technologies from India would power Africa and the third world"
The reason i said Africa and third world, is we understand them better. India is more similar to them than the Western Markets.
For example SMS as a use case, this is a huge phenomenon in India and Africa, whereas it is not that popular in say US, where the Voice Mail is popular. Just ask any Indian phone user what a voice mail is?
There are cultural differences in how we use technologies and using a phone to alert of an impending weather as an SMS for the farmer or anything similar, technologies need to be catered based on the usage patterns in different parts of the world.
As for the Skype story, well Estonia and then Luxembourg was the country of choice for reasons more to do with taxing in Europe than anything else. Multi country collaboration between Denmark , Sweden and Estonia, But then it is now a M$ subsidiary. If we count all the various banks out of Cayman Islands, would that not make them the financial giants of the world?
Indian economy is 1/5th of the US economy...
There are 5 times more people in India....
What does this translate to?
------------- Let us say a 100 dollar pie, in India this would be a 20 $ Pie
------------ In the US, if 5 people are needed to make the 100 dollar pie they each get 20 USD
---------- in India , the 20 $ Pie is eaten by 25 people, so you get 80 cents per hear....
Now where is the incentive to do something that is a high risk low return job?
And think of the Interest rates at 10 percent, people would wonder why take the risk when I can make money with my cash in the Bank.
In the US, the interest rates are at the lowest, a stable dollar, it all helps...
Having said that we are seeing a lot of niche companies coming out of the stables..
Zoho is a perfect example, but think of it as an Indian company catering to US markets.... it is not feasible to sell the product in Indian markets?
Bancs, Finnacle and Flex (Though now Oracle, mostly home grown) have done well in the banking space.
We do have our own Flipkart or Myntra Snapdeal, Quikr, you may be wondering what it has to do with IT product companies? Well Amazon was a retailer and you now know what they do now other than retailing.
Once the economy is big enough, we would see more larger organizations. A billion dollar company was rare in India a few decades back....
http://10000startups.com/
Some of these initiatives are bearing fruits..
IT is just a matter of time. There is a good chance "Technologies from India would power Africa and the third world"
The reason i said Africa and third world, is we understand them better. India is more similar to them than the Western Markets.
For example SMS as a use case, this is a huge phenomenon in India and Africa, whereas it is not that popular in say US, where the Voice Mail is popular. Just ask any Indian phone user what a voice mail is?
There are cultural differences in how we use technologies and using a phone to alert of an impending weather as an SMS for the farmer or anything similar, technologies need to be catered based on the usage patterns in different parts of the world.
As for the Skype story, well Estonia and then Luxembourg was the country of choice for reasons more to do with taxing in Europe than anything else. Multi country collaboration between Denmark , Sweden and Estonia, But then it is now a M$ subsidiary. If we count all the various banks out of Cayman Islands, would that not make them the financial giants of the world?
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