What it takes to start a software consulting company from the scratch? Its not a distant past when TCS and Infosys started scouting for clients in the USA but I still don't understand how they approached these seemingly unapproachable CxOs and asked for the business. Even though they are the early movers, I am sure there will be even bigger companies in future.
Many of us probably want to start their own business and I know there are some courageous folks among us who have actually ventured out.
I would like this thread to become 'starting software company for dummies' thread. (of course this dummy would not be your average dummy!)
Starting a software consulting company
Starting a software consulting company
Infy, wipro & other major indian vendors started out when they caught a lucky break with the whole Y2K Phenomenon going around in circa 1999 AD. Coz of the hype created, Big US firms didnt wanna wake up on 01.01.00 (i mean 01.01.2000) and lose access to their parking spot, coz his badge wouldn't work anymore in the scanner (God forbid!), they didnt have a choice, but to outsource that work consisting of combing thru millions of lines of code to replace YY with YYYY, t'would have been too much red ink on the balance sheet. Thats how the Shyams & Ganshyams of gurgaon got into IT even tho they didnt kno how to spell IIT. jus look for dos Ys, replace with quattro Ys.
So, Compulsion rather than liking forced the CxOs to board that flight to India, thx to added leg room in F class, it wasn't too horrible for em.
When them Indian companies did a not too bad a job on solving Y2K (the card scanner still works doesnt it), this got them white boys thinking, if these guys can add 2 Ys to our code, they should be able to add a few 0s to our balance sheet, hence the term "Outsourcing" got a new meaning among the general American public & Capitol Hill.
Like u rightly mentioned it would be foolish to think that there wouldn't be any bigger cos. in the near future. but if u starting one today, lemme tell u, u better hire some big guns (good ol white boys who have a proven track record of meeting and smashing their sales targets on a YoY basis), u better have ur pockets full, coz u shure need to burn thru a few checkbooks before ur biznez can afford gourmet meals for ur staffers.
oh and one more thing, u better improve ur golf game, coz when ur Sales Veep & potential CxO client are hitting them out, u dont wanna be the one clubbing the grass to death.
So, Compulsion rather than liking forced the CxOs to board that flight to India, thx to added leg room in F class, it wasn't too horrible for em.
When them Indian companies did a not too bad a job on solving Y2K (the card scanner still works doesnt it), this got them white boys thinking, if these guys can add 2 Ys to our code, they should be able to add a few 0s to our balance sheet, hence the term "Outsourcing" got a new meaning among the general American public & Capitol Hill.
Like u rightly mentioned it would be foolish to think that there wouldn't be any bigger cos. in the near future. but if u starting one today, lemme tell u, u better hire some big guns (good ol white boys who have a proven track record of meeting and smashing their sales targets on a YoY basis), u better have ur pockets full, coz u shure need to burn thru a few checkbooks before ur biznez can afford gourmet meals for ur staffers.
oh and one more thing, u better improve ur golf game, coz when ur Sales Veep & potential CxO client are hitting them out, u dont wanna be the one clubbing the grass to death.
Starting a software consulting company
ashMan;21448Infy, wipro & other major indian vendors started out when they caught a lucky break with the whole Y2K Phenomenon going around in circa 1999 AD. Coz of the hype created, Big US firms didnt wanna wake up on 01.01.00 (i mean 01.01.2000) and lose access to their parking spot, coz his badge wouldn't work anymore in the scanner (God forbid!), they didnt have a choice, but to outsource that work consisting of combing thru millions of lines of code to replace YY with YYYY, t'would have been too much red ink on the balance sheet. Thats how the Shyams & Ganshyams of gurgaon got into IT even tho they didnt kno how to spell IIT. jus look for dos Ys, replace with quattro Ys.
So, Compulsion rather than liking forced the CxOs to board that flight to India, thx to added leg room in F class, it wasn't too horrible for em.
When them Indian companies did a not too bad a job on solving Y2K (the card scanner still works doesnt it), this got them white boys thinking, if these guys can add 2 Ys to our code, they should be able to add a few 0s to our balance sheet, hence the term "Outsourcing" got a new meaning among the general American public & Capitol Hill.
Like u rightly mentioned it would be foolish to think that there wouldn't be any bigger cos. in the near future. but if u starting one today, lemme tell u, u better hire some big guns (good ol white boys who have a proven track record of meeting and smashing their sales targets on a YoY basis), u better have ur pockets full, coz u shure need to burn thru a few checkbooks before ur biznez can afford gourmet meals for ur staffers.
oh and one more thing, u better improve ur golf game, coz when ur Sales Veep & potential CxO client are hitting them out, u dont wanna be the one clubbing the grass to death.[/quote]
Can't agree more with this analysis. If you still want to beat Wipro, TCS start the outsourcing company in a village and hire employees from that village. Since the cost of living is lower in the village, you can beat the big guys. Another option is to start a product company, but then the risks are high.
Starting a software consulting company
Ashman, I must say that you have summed up the IT scenario pretty well. You are right, it does sound like that one needs a ton of ready cash to burn before one can enter this field. However, as history has proven time and again, many of the future enterprenuer millionaires probably are in pretty bad economical shape as we speak.
But lets assume that you have moderate funding...say $200K and want to start a run-of-the-mill consulting firm...(Lets not say 'impossible' as we know many folks are going to do it and we will end up analyzing how lady luck smiled on them)...What are the first elementary steps he/she should take?
But lets assume that you have moderate funding...say $200K and want to start a run-of-the-mill consulting firm...(Lets not say 'impossible' as we know many folks are going to do it and we will end up analyzing how lady luck smiled on them)...What are the first elementary steps he/she should take?
Starting a software consulting company
With so many of R2Iers with good experience in product companies, why not start a product company in India? I know it takes a lot of effort and money, but looking at the polls, I think there are some people capable of investing that kind of money and taking that kind of risk.
Most of the companies in India are consulting companies and are more or less only providing man-power to the US/Other companies as and when required. There are small divisions of R&D in both Infy and Wipro and other companies, but I have not heard of any Indian company coming out with a good product.
I strongly believe that some of the R2Iers can make this happen if they focus and can make it big in India. Also, they can be proud of themselves and make India proud.
Most of the companies in India are consulting companies and are more or less only providing man-power to the US/Other companies as and when required. There are small divisions of R&D in both Infy and Wipro and other companies, but I have not heard of any Indian company coming out with a good product.
I strongly believe that some of the R2Iers can make this happen if they focus and can make it big in India. Also, they can be proud of themselves and make India proud.
Starting a software consulting company
ashMan, How dare you write such things? Don't you know all these vendors / big guys from Infosys, Wipro, Satyam, Cognizant etc... are great visionaries? Isn't it only because of their great foresight / excellent planning / huge investments we are in this situation today. It was part of a very well planned strategy, you know.
Seriously, an excellent summary. You summed it up very well.
Seriously, an excellent summary. You summed it up very well.
Starting a software consulting company
MeraNaseebR2I;21673
However, here is something that I have seen
- Majority product companies based in India are not innovative, they seem to be direct copies of their US counterparts.
- Few are innovative and they seek India as the primary market.
- a percentage of this few have the muscle to think outside the box and target Asian economies.
My 2c.[/quote]
Looking at the customer base in India I would say that even if your product is primarily targeted at Indian customer, you are going to make it big and definitely make a winning company.
I would go one step ahead and say that it is time to look at providing low cost solutions to replace already existing EXpensive solutions, maintaining the same quality. It is not worth competing with the biggies like Microsoft, Oracle, IBM, Cisco , Motorola, BEA etc or for that matter even TCS, Wipro, Infy.
Since this is a discussion on 'consulting' company, I think my 2paise (or should I say 2c) should end here.
Starting a software consulting company
MeraNaseebR2I;21694Reading between your lines - you and I are saying the same thing.
There is money to be made in India for a product or service that differentiates itself from the Large enterprise companies and the large consulting companies.[/quote]
Yes, Agreed. And, I believe this is the RIGHT time!
Starting a software consulting company
Let me put it this way...If you are offerred a CEO job with 30 Lakh/Year salary and a $100K/Year expense account in a brand new start up software consulting company, would you accept it? If you would, then how you would go about doing your job?
Similarly, if you are offerred a sales manager's job with $200,000 salary, carte blanche power and $100,000 expense account, in the same start up company, would you accept it? If yes, what would be your strategy?
I am sure for right people such jobs are out there for asking...and would like to find out what these 'right' people would do in these situation.
Similarly, if you are offerred a sales manager's job with $200,000 salary, carte blanche power and $100,000 expense account, in the same start up company, would you accept it? If yes, what would be your strategy?
I am sure for right people such jobs are out there for asking...and would like to find out what these 'right' people would do in these situation.
Starting a software consulting company
Two things to consider in here:
1. India’s Skills Famine
by James Surowiecki
http://www.newyorker.com/talk/2007/04/16/070416ta_talk_surowiecki
But India has run into a surprising hitch on its way to superpower status: its inexhaustible supply of workers is becoming exhausted. Although India has one of the youngest workforces on the planet, the head of Infosys said recently that there was an “acute shortage of skilled manpower,” and a study by Hewitt Associates projects that this year salaries for skilled workers will rise fourteen and a half per cent, a sure sign that demand for skilled labor is outstripping supply.
2. CEO Salary in India is still very affordable for American Corporations:
In contrast, CEOs in fast-rising India are among the lowest paid with an average base salary of US$89,759 and annual total cash of US$111,510 on average.
http://www.bruneitimes.com.bn/details.php?shape_ID=28701
These are kind of contrasting information. On one hand, you see that CEO salary in India isn't that great as Rediff or other outlets trumpet. So if someone is trying to get in India as an American company's CEO (branch), the company can easily afford it as the compensation is less than $200K on an average.
At the same time, the qualified resource tap is running out at the bottom/middle. It will be challenging to get the right resources in an industry that is completely dependent upon the quality of people contributing!
Now go figure :emwink:
1. India’s Skills Famine
by James Surowiecki
http://www.newyorker.com/talk/2007/04/16/070416ta_talk_surowiecki
But India has run into a surprising hitch on its way to superpower status: its inexhaustible supply of workers is becoming exhausted. Although India has one of the youngest workforces on the planet, the head of Infosys said recently that there was an “acute shortage of skilled manpower,” and a study by Hewitt Associates projects that this year salaries for skilled workers will rise fourteen and a half per cent, a sure sign that demand for skilled labor is outstripping supply.
2. CEO Salary in India is still very affordable for American Corporations:
In contrast, CEOs in fast-rising India are among the lowest paid with an average base salary of US$89,759 and annual total cash of US$111,510 on average.
http://www.bruneitimes.com.bn/details.php?shape_ID=28701
These are kind of contrasting information. On one hand, you see that CEO salary in India isn't that great as Rediff or other outlets trumpet. So if someone is trying to get in India as an American company's CEO (branch), the company can easily afford it as the compensation is less than $200K on an average.
At the same time, the qualified resource tap is running out at the bottom/middle. It will be challenging to get the right resources in an industry that is completely dependent upon the quality of people contributing!
Now go figure :emwink: