Friday, November 30, 2007

Bangalore: From Outsourcing Heaven to Hotbed of Innovation

But Jain's zest eventually fizzled under the repetitive rigors of the Indian back office. So he did what a parade of burned-out functionaries in Bangalore have begun doing: He quit outsourcing to create his own start-up - in his case, designing cellphone software that blocks calls from telemarketers.

Like Jain, some of the best minds in India, trained by leading global companies like Oracle, Yahoo and Microsoft, are slipping out of the back office to build start-ups. And Bangalore, the outsourcing capital, now looks like an incipient Silicon Valley of the East.
Anand Giriharadas in today's IHT.



Bhel Puri & Seekh Kabab said...

Nice link - thanks for sharing.

As the article illustrates, the 'network effect' is in full action in Bangalore, similar to the Bay Area, Boston and Austin.

Bangalore always had the colleges to turn out engineering talent, and the conducive climate. What seems to be new now is the massive infusion of capital and the change in employees' attitudes.

I have several relatives working in the kind of startups mentioned here. Five years ago, VCs in the Bay Area would ask potential entrepreneurs "what is your India strategy?", and expect to receive answers around going to India for engineering, QA and customer support (picking three components of a typical software company).

A couple of years later, product development and sales moved there too.

Now, for many firms, the only pieces of the chain in the West are the two ends - the funding capital and the customers.


Choxbox said...

have a friend in bangalore who is one such entrepreneur. doing brilliant.

Jaime Silva said...

Hi Sujatha!!!

Sorry, I have tried to add on my blog a translator tool but since I'm a roockie in the blogosphere...I couldn't do it.

Well today is my third day in Bangalore!!! I'm loving this city. People scared me telling me that it would be a great shock and that after a month I would be back... Wrong...

People are very nice and kind... food is not as spicy as I thought... The campus where I'm working has facilities that are not seen in Portugal... What else could I desire :)