NYT says India’s pace of IT innovation slow. How is Pakistan doing?

[TechLahore]

NYT says India’s pace of IT innovation slow. How is Pakistan doing? | TechLahore

NYT says India’s pace of IT innovation slow. How is Pakistan doing?

Mar.29, 2010 in SW Industry, innovation Leave a Comment

The New York Times recently published an interesting article on the state of IT innovation in India. In a nutshell, the Times found that while India continues to be a low-cost offshoring destination, Indian companies are not being able to truly innovate and create compelling new products. Within India, there appears to be an overwhelming focus on being a low cost body shop for western businesses while the environment remains unfriendly to innovation and risk.

Years ago, as India’s offshoring market was picking up, many analysts wondered whether India would eventually “learn the business” sufficiently to start producing innovating product focused companies that could scale. It appears that despite over 20 years of providing low-cost development services, the answer is still no.

Nadathur S. Ranghavan of Infosys, as quoted by the New York Times, explains:

“The same idea, if it’s born in Silicon Valley it goes the distance,” said Nadathur S. Raghavan, a investor in start-ups and a founder of Infosys, one of India’s most successful technology companies. “If it’s born in India it does not go the distance.”

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[Awesome]

The thing about both countries is that our IT "innovations" are limited to customized software for corporations to serve a political need.

We lack any true Computer Scientific work. Our hardware based innovations have been things like shotgunning 50 computers together to make a super computer or perhaps how India keeps coming out with "cheapest" laptops.

Nothing truly scientific.

I personally haven't had the experience of working with any of the Pakistani IT firms you've mentioned, but I'm speaking from experience with others (some top names). They are all good, professional and delivery good products. I've worked with top names from India and I feel the Pakistanis deliver a better product. But Indians talk big, they are always busy counting down their "implementations" (which are always over exaggerated). Can't take names of companies while I'm criticizing them for obvious reasons.

However from my experience, both countries focus upon being solution providers rather than innovators.

 

[ameer219]

If you guys want to know the articles from NYT, here it is.

The New York Times > Log In

 

[Chiru]

Can you please list pakistani software companies?

Indian companies are moving up in the value chain in last 5-6 year.

Once they have enough cash reserve they will start looking for R&D in product development. Not taking any risk.

 

[TechLahore]

The thing about both countries is that our IT "innovations" are limited to customized software for corporations to serve a political need.

We lack any true Computer Scientific work. Our hardware based innovations have been things like shotgunning 50 computers together to make a super computer or perhaps how India keeps coming out with "cheapest" laptops.

Nothing truly scientific.

I personally haven't had the experience of working with any of the Pakistani IT firms you've mentioned, but I'm speaking from experience with others (some top names). They are all good, professional and delivery good products. I've worked with top names from India and I feel the Pakistanis deliver a better product. But Indians talk big, they are always busy counting down their "implementations" (which are always over exaggerated). Can't take names of companies while I'm criticizing them for obvious reasons.

However from my experience, both countries focus upon being solution providers rather than innovators.

Fundamental advancements in the science of computing aside, what I am referring to as "innovation" is product-based business innovation. This is starkly different to the body-shop/low-cost contract work model. There is a very clear trend in the Pakistani software industry today to move toward product based models as quickly as possible. That, I think, is the point I was trying to make. What remains to be seen, of course, is how effective this strategy is... we'll know in a few years.

 

[TechLahore]

Can you please list pakistani software companies?

They are too numerous to list. A reasonable subset is listed at the Pakistan Association of Software Houses website. This doesn't list all the software companies, but does provide a list of official PASHA members as of 2009. Please visit P@SHA for further info.

Once they have enough cash reserve they will start looking for R&D in product development. Not taking any risk.

Therein lies the issue, and that's probably why India hasn't been able to produce product companies. HP, Apple, Microsoft, Google, Yahoo and Dell were not created by large companies that waited to build up cash reserves to mitigate risk. They were founded by daring entrepreneurs with almost no money. The NYT is making the point that the classic entrepreneurial culture of embracing risk to create compelling *new* products is not taking root in India due to underlying societal issues.

 

[Chiru]

They are too numerous to list. A reasonable subset is listed at the Pakistan Association of Software Houses website. This doesn't list all the software companies, but does provide a list of official PASHA members as of 2009. Please visit P@SHA for further info.



Therein lies the issue, and that's probably why India hasn't been able to produce product companies. HP, Apple, Microsoft, Google, Yahoo and Dell were not created by large companies that waited to build up cash reserves to mitigate risk. They were founded by daring entrepreneurs with almost no money. The NYT is making the point that the classic entrepreneurial culture of embracing risk to create compelling *new* products is not taking root in India due to underlying societal issues.

In USA anyone can start a new company with LLC. If you have good idea you will get loan and funding very easily. If any failure you can just walk away. Thats why there are lot of start up in silicon valley.
Significant numbers by indians also.

In india there is lot of resource crunch leaving last year. Why would company put a resource in R&D if he get billing working on offshored project/product.

BTW which is pakistans biggest software company and its head count/revenue

 

[Awesome]

Fundamental advancements in the science of computing aside, what I am referring to as "innovation" is product-based business innovation. This is starkly different to the body-shop/low-cost contract work model. There is a very clear trend in the Pakistani software industry today to move toward product based models as quickly as possible. That, I think, is the point I was trying to make. What remains to be seen, of course, is how effective this strategy is... we'll know in a few years.

I'm working on a research proposal to work on some Artificial Intelligence and how to incorporate them into Pakistan in the hunt for terrorists and their financiers.

That is somewhere my long term goals lie in. That is something I would consider pure computer science.

The Pakistanis are producing good products, especially when it comes to producing full solutions. I personally have worked with them on implementations of ERPs, Accounting systems, deploying nationwide massive proprietary network based applications, network monitoring systems, asset management, anti-money launderings, core banking solutions.

 

[RobbieS]

Its a valid point. Indian IT companies compete on price-points in the market most of the time. Although they have been trying to move up in the value chain, developing whole modules and implementation plans rather than just testing and maintenance, its high time they focused their efforts on innovation.

 

[Justin Joseph]

They are too numerous to list. A reasonable subset is listed at the Pakistan Association of Software Houses website. This doesn't list all the software companies, but does provide a list of official PASHA members as of 2009. Please visit P@SHA for further info.



Therein lies the issue, and that's probably why India hasn't been able to produce product companies. HP, Apple, Microsoft, Google, Yahoo and Dell were not created by large companies that waited to build up cash reserves to mitigate risk. They were founded by daring entrepreneurs with almost no money. The NYT is making the point that the classic entrepreneurial culture of embracing risk to create compelling *new* products is not taking root in India due to underlying societal issues.

Sir,

Following is submitted for your kind information:

1. Indians are the biggest ethnic group in USA with most number of start ups.

2. They are successful and also richest immigrant group.

3. But, in India problem is of VC.

4. The example of garage start ups like Google and HP are possible in USA, because they have got culture of VC and the funding is very easy.

5. Yes, most of the companies you have mentioned has started from garage and by fresh students.

They are not started by big or small any companies but by students.

6. And your answer lies in the same, in USA they got easy fund so the fresh ideas evolve, in India there is no easy flow of funds and you can see the results.

7. If u want a example from USA i can give u of Sabeer Bhatia a Indian who have founded Hotmail and later sold it to Microsoft.

thanks

 

[Justin Joseph]

The thing about both countries is that our IT "innovations" are limited to customized software for corporations to serve a political need.

We lack any true Computer Scientific work. Our hardware based innovations have been things like shotgunning 50 computers together to make a super computer or perhaps how India keeps coming out with "cheapest" laptops.

Nothing truly scientific.

I personally haven't had the experience of working with any of the Pakistani IT firms you've mentioned, but I'm speaking from experience with others (some top names). They are all good, professional and delivery good products. I've worked with top names from India and I feel the Pakistanis deliver a better product. But Indians talk big, they are always busy counting down their "implementations" (which are always over exaggerated). Can't take names of companies while I'm criticizing them for obvious reasons.

However from my experience, both countries focus upon being solution providers rather than innovators.

sir,

Look at the bold part, Its like talking big, everybody knows about the capabilities and highest standard of qualities, of the Indian firms so I need not to write an essay on that.

And being a patriot is good but one need not to go on extent of irrational. "Pakistani companies delivers a better product"?????

thanks

 

[dbc]

What is Indian or Pakistani innovation? Do you realize several technological innovations that originated in a R&E centers in India or China have hit the market in the last decade? The reason you don't associate these innovations with either India or China is because the announcement is invariably made by corporate HQ in the US and is rarely attributed to a research center in any specific country.

 

[Justin Joseph]

What is Indian or Pakistani innovation? Do you realize several technological innovations that originated in a R&E centers in India or China have hit the market in the last decade? The reason you don't associate these innovations with either India or China is because the announcement is invariably made by corporate HQ in the US and is rarely attributed to a research center in any specific country.

Yes, you are right.

* Microsoft has built its largest development centre outside US in India.
* GE's centre in Bangalore is the company's largest research outfit outside the United States.
* Dell has established its biggest research and development centre outside the US in Bangalore.
* The Daimler-Chrysler Research Centre in India is one of three centres the company has outside Germany.
* SAP Labs India is the largest R&D hub and support presence for SAP outside Germany.
* Royal Shell Group has its second largest R&D centre - Shell Technology Centre - in Bangalore.
* India has emerged as the largest R&D centre for Cambridge Silicon Radio (CSR) -- a provider of personal wireless technology -- outside the UK. CSR's customers include Apple, LG, Motorola, Nokia and a host of other consumer brands.
* The University of Oxford is to set up its first research centre outside UK in association with the Confederation of Indian Industry in India.
* Advanced Micro Devices Inc.(AMD) has established its third development centre in Bangalore. India accounts for about 25 per cent of its global R&D efforts, in terms of workforce.
* Rolls-Royce has tied up with the Indian Institute of Science (IISc), Bangalore, and the Imperial College of UK to work together on a new research project to develop alloys for use in 'greener' aircraft engines.

Some of the other leading global players in this industry include IBM, DuPont, Monsanto, Cisco, Intel, General Motors, Astra Zeneca, Siemens, Hyundai, Delphi, Analog Devices, Hewlett Packard, Heinz and Motorola among others.

 

[TechLahore]

What is Indian or Pakistani innovation? Do you realize several technological innovations that originated in a R&E centers in India or China have hit the market in the last decade? The reason you don't associate these innovations with either India or China is because the announcement is invariably made by corporate HQ in the US and is rarely attributed to a research center in any specific country.

Your point is valid. For example, few people know that the first (and largest) company delivering invisible braces to the US market was started by a Pakistani and the entire backend (over 1,300 people) was based in Pakistan (TRG - The Resource Group). Or that the software app that won the Gold award at VMWORLD was made in Lahore, Pakistan (Software App built in Pakistan wins Top award at VMWorld | Mohtashim's IT Tazee). Or that the BMW award for innovation was given to an application developed by a Pakistani, leveraging a backend software development outfit in Pakistan (Cover Story (Techlogix: Building the e-Future)).

That being said, I think it is important for us to have a strong culture of innovative product focused startups that can scale and add serious value to the national economy.

 

[Justin Joseph]

Even biggest companies from China are having their major R&D centers in India.

"The Chief Operating Officer of Huawei India R&D centre, George Huang, told Business Line that the India centre has emerged as one of the key intellectual property generators for the corporation which has filed for nearly 27,000 patents worldwide."

Link: Huawei India R&D centre files over 200 patents

Huawei to hire 3000 professionals - Express India

Huawei plans US$500 mln investment in India - China.org.cn

Huawei's Indian R&D Center achieves SEI CMMi Ver 1.2 Level 5 Certification

This is more than to prove our talent.