I believe the new committee began on an auspicious note with the announcement of the Finance minister to extend the STPI scheme till 2010. We surely hope that the industry gets to hear more of such encouraging developments. Most of us in the Industry strongly feel that this scheme has to be extended beyond 2010 to ensure we sustain the leadership we have established on the global map.
The new MC will chart out the plans for the coming year for HYSEA and we will let all of you know about the programs in due course. I take this opportunity to thank Dr Anil Jampala and his managing committee for the tremendous contribution they have made to the industry in the last 2 years.
The present Newsletter is focused on the Software Products. The Indian software products business has vast unexplored potential for growth and is always a much higher ‘value-add’ business, which is what we always wanted to do. The Indian IT industry needs now some highly successful Products to promote the ‘made in India’ brand. While a Services business normally experiences a steady growth (anywhere from 0 to 60-70% in most cases), in the Products’ business we can expect much higher growth rates. Also the ability to grow in Services business is a function of how much the company can Scale up on Infrastructure or Talent, there is no such constraint in Product business. The need in Product companies is more often for Quality and not quantity.
From a business model stand point a Product business is higher on the risk-reward curve than the Services business (meaning the risks are higher in business but so are the rewards). A successful Product company has to identify the right Business Idea to convert into a Product, has to make the right Technology choices, bring the right talent into building the product, invest in marketing of the product and last but not the least ensure its end-customers are able to quickly leverage it for their business benefit. While there are more elements which have to fall in place for a Product to succeed, the rewards are very high for the ones who do this and this motivates many new comers to get into this space. The ideas for products are innumerable and very often it’s the ability to spot the right ideas which differentiates the winners from the ‘also-rans’. Please send in your feedback on how HYSEA can help to make Hyderabad a hub for Product companies.
Here is wishing all the entrepreneurs and companies into product all the success and hoping many more will get into this business and build some really successful Products…. |
