Bangalore has a combination of startups; IT services firms, R&D centers and Global In-house Centers. This has propelled Bangalore to be fondly called as Silicon Valley beyond leaps and bounds. But is it heaving the futuristic threshold to sustain itself as ‘Silicon Valley ‘?
Here are few pointers shared by Mr. Joseph Jayakumar, IT Thought leader and Director Amstar Technologies who has seen many organizations grow in his 30+ year’s tenure. He has also successfully trained and mentored many corporates across big organizations like Tesco, HCL, NOKIA to name a few etc
He was at the recently concluded Bangalore Tech Summit 2018. The summit brought about with its own share of inventions and re-inventions talks. For example, what are the inventions that are transforming our world? While Shows like Drone Show, Hackathon fall to this category. The second category or shall we say reinvention features about the turnaround of companies such as Intel, HP, IBM, Infosys, Microsoft etc.
The narrative of invention and re-invention applies not just to companies and products, but to countries as well. Many Countries successfully participated at Bangalore Tech Summit 2018 and wanted to establish in Bangalore for the promising talent it has.
This shows that Bangalore is reinventing itself from a low-cost BPO centre to a high-value R&D and global innovation hub successfully due to a successful PPP (Public Private Policy).
Here are my takeaways on this transformative journey of Bangalore post attending Bangalore Tech Summit 2018 which was all about Dream, Build and Grow via the theme of Innovate and Impact.
a) Digital transformation :
Every company is now a tech company," Digital is not just an add-on but more of a core element of business redesign.” Frameworks have emerged to show how companies can re-imagine customer pathways and build a digital connect at ease. Much of this digital design requires software skills, which play well to Bangalore’s advantage as we are getting strongly equipped in it.
b) The 'Amazonisation' of industry:
Yes Digital is driven by the internet namely SMAC (Social, Mobile, Analytics and Cloud), AI and IoT are coming up. However it is the ruthless competitive force by giants like Amazon that is serving as a wake-up call to industry to implement these software’s/solutions or else perish. This is causing a disruption sector after sector, ranging from retail to media causing a huge gap in skilled workforce.
c) Advantage India from Cost to Talent :
Emerging economies like India which begun at low-cost value of the IT chain has captured high-value segments as well. India seen as the back office of the world in terms of IT services and BPO is now diversifying across the chain as a knowledge partner.
India has not just a lot of cheap qualified talent, but also diverse talent. As quoted by Samson Khaou, MD Dassault Systems said, "We came to India for the costs, we stayed for the quality, and we are now investing for the innovation." This shows the importance of reskilling and quality workforce and how we are helping organizations achieve the best outcomes in their reskilling.
d) India as a Global Brand:
With many global businesses planning to run operations from India an invisible embedded support for R&D and business processes has helped to position India and most importantly Bangalore itself as the leader.
e) The Global In-house Centre (GIC):
Global In-house Centers (GICs) of many MNCs in India are moving from a 'proof-of-concept' to centers of strategic importance. Infact GICs formerly called as shared-services centers are playing an active role in helping their enterprises excel in the digital world. GICs in India account for over a fifth of IT-BPM exports and a fourth of India's export employees. India is the leading country for MNCs to set up GICs. Most GICs are in the software and internet sector, followed by industrial and automotive namely embedded and engineering services.
f) Where else but India?
g) Frugal mindset
Another advantage is the cost of experimentation in India which is lower as compared to other parts of the world. We are not just about "conscious innovation" but also ensure that we blend frugality with holistic thinking. This makes India a safe best for IT investments.
h) The dark side: urban chaos, disparity
There are over 16,000 IT firms in India, over a thousand MNCs, and more than 5,000 startups, according to a Nasscom report. However, the proverbial dark side of tech story lies in its urban chaos, traffic snarls, pollution, and economic disparity.
- We as 'Global Bangalore' can do more for 'Local Bangalore’ and can help smaller towns up their game.
- Not just this we can also help rural India and marginalized communities to be brought into the anvil.
- The Indian IT industry just needs to have a right reskilling and training mechanism and we are active partners for this noble initiative.
India's outsourcing industry has reinvented itself from volume based to knowledge based. Industry, government and academia are coming together to upskill India's workforce.
For example, centers of excellence in analytics, IoT and cyber security are being ramped up by the Karnataka government which was announced at Bangalore Tech Summit 2018. It is often tempting to compare Bangalore to Silicon Valley though Silicon Valley is not a city but a region and ask when India can produce the next Google or Apple.
Bangalore’s unique combination of software skills, R&D, GICs, startups and VCs has created a world-class ecosystem. "Silicon Valley does not have GICs the way Bangalore does. Bangalore can truly become a Super Silicon Valley if the above steps are meticoulsuly planned in letter and spirit," summed up Joseph Jayakumar post his tenacious participation at Bangalore Tech Summit 2018.