During the dot-com boom, tech companies were more concerned with developing “next generation” products than with considering the cost to buyers. They would market their product to potential customers as something that they will need in the future rather than something that can be put to immediate use now. But times have changed. Now, short-term value creation for customers has become the name of the game. Business consumers no longer want to see a sexy demo with bells and whistles—they want to see a real, no-nonsense product. They are no longer persuaded by vague estimates about the value-creation offered by the product they're considering to buy-they want to see hard numbers on the return on investment (ROI). They are no longer impressed by a company that has gone IPO or the prestige of a company's investors. They want to see a product that works great and a company with a balance sheet that assures them that it will stick around for a while.
As in war, where great generals turn every adversity into an advantage in order to defeat their enemies, strong entrepreneurs see the current economic downturn as a crucial opportunity to get ahead of the competition. For instance, a number of companies in our 2002 si100 are growing their revenues at 10 to 12% per month while keeping costs under control. This is the perfect time for true entrepreneurs to show their mettle. This is the time when getting a fancy MBA from a prestigious school or doing a two-year stint at a top consulting firm will not help the aspiring entrepreneur. What does help today's entrepreneur is to have a product that saves customers money or to provide a much-needed service at a reasonable price. Isn't this what Indian entrepreneurs do best in the first place?
One important advantage we have over other entrepreneurs is the ability to leverage a cost-effective labor pool in India by moving technology development and back-office processes there. Business Process Outsourcing (BPO) helps India by generating jobs in India-an estimated 1.1 million jobs in just a few years. BPO helps businesses in the U.S. by reducing their cost structure, thereby enabling them to compete in this challenging environment. And BPO helps the U.S. economy by making U.S. businesses more competitive in the global market. In the not too distant future, we may look back and consider this period of economic turmoil as a time of golden opportunity for Indian tech dhanda in the U.S.—a comforting thought for those who helplessly watch their stock shares hit new lows with every passing day.
