The following was the feedback from one of my friends who attended a discussion hosted by IIT-M alumni association on "Capitalizing on the Rise of India'.
The panel comprised of an accomplished group of people and it was an engaging session that went well over an hour beyond the end-time. The panel represented VCs, Talent Search firms, Venture Law, Banking, and a couple of top tech companies. The session was 3-hrs long but to keep this short, I'll just point out some key topics that caught my attention -
1) Moving up the value chain -
India has rapidly progressed from a low-cost location, through a service oriented-location, and finally to a value-added economy. A VC thought that most anything that can be done in the US can be done in India (except things that require vast infrastructural sophistication). It started with back-office sofware work but now has moved on to banking, chip design, and business consulting. Nothing new there.
2) Dearth of high-level tech people -
There's no shortage of entry-level engineers in India. The key advantage for people people considering a move to India is that they will enjoy a substantial jump in their roles and responsibilities. The statement was targeted at people with ~10+ yrs of experience. Since India is currently in its growth phase, companies are more willing to try giving larger roles to US-returnees. They thought that India today is remniscent of the excitement that Silicon Valley saw a decade or two ago.
3) Increasing Standard of Living -
Many of us go to India only for vacation and don't get a good feel for how it is to live there. The panel observed that livelihood issues - housing, motgages, schools, hospitals, etc.- have made big leaps. It may be unrealistic to expect US-like lifestyle all across the country, overnight. But small pockets of urban areas already look a great deal like the US in all respects (certainly cost-wise). Also, the average engineer has a better standard of living and more disposable income in India. But pay scales are all across the board (not as deterministic as in the US). Key difference is that one generally moves from a middle-class life in the bay area to an upper-class lifestyle in India.
4) Tech and also non-tech sectors are growing by leaps and bounds -
New generation of consumers with large disposable incomes is increasing the market for secondary, non-tech industries (like motgage, financing, auto, airlines etc).
5) Growth reaching beyond metro areas, although a bit slower -
GE, the pioneer of India-outsourcing, is now taking the next step by entering into the creation of satellite townships (called 3rd and 4th tier cities in biz talk). They want to create whole new tech cities that will alleviate the problems they face in urban India - congestion, high wages, and employee attrition.
7) Retail market will see big growth -
Currently the Prime Minister is working towards allowing foreign retailers like Walmart and Office Depot to allow India operations. Needless to say, this is a huge opportunity and big retailers are eagerly waiting for the flood-gates to open (I personally am not so sure this is a good thing for India, specially Walmart's entry).
6) Urban traffic woes are unlikely to ease anytime soon -
Bangalore traffic will still suck a few years out. So stop complaining about 101.
Few more interesting questions that I have only a fleeting memory of. Overall it was a good think-out-loud session. Finally, there was an open invitation from the VC, encouraging people with ideas or those looking for India jobs to come and talk to him.
Thanks for the patient reading.