Mohanbir Sawhney Presentation at Thinkers50 India
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Transcript of Mohanbir Sawhney Presentation at Thinkers50 India
![Page 1: Mohanbir Sawhney Presentation at Thinkers50 India](https://reader035.fdocuments.in/reader035/viewer/2022062616/54b48d944a7959d6068b461e/html5/thumbnails/1.jpg)
Mohan SawhneyKellogg School of ManagementAugust 30, 2013
India Outside: From IT Services to Technology Products
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• Indian exports of IT and BPM services reached $69 billion in 2012
• India controls 58% of the global sourcing industry
• The IT and BPM industry accounted for 25% of India’s exports in 2012
• BPM and Analytics services are the more recent success stories
India leads the world in IT services
Source: NASSCOM
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• Software product exports are a paltry $1.5 billion, less than 5% of the Indian software industry.
• There are 3,400 Indian software product companies but the average revenue is less than $600K
• Software product exports have grown at a CAGR of only 10% from 2008 to 2013
• India lags behind China, Israel, Russia and Brazil in software product revenues
But where are the products?
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• Banking products like i-Flex and Finacle (Infosys) and BaNCS (from Tata Consultancy Services) are the only notable Indian software products
• While Indian IT majors have excelled in outsourced R&D and product development, they haven’t developed meaningful products themselves
Even the IT Majors lag behind
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The Indian IT industry journey
People
Projects
Processes
Products
We are stuck here
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Why products? Scaling revenues
Revenues
Time
Products
Services
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India can learn a lot from Israel
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• Culture of fighting against adversity
• Entrepreneurial mindset and “chutzpah”
• Mandatory military service• Israeli Defense Forces as a leading-
edge customer • Strong connections to the United
States financial community• Startup funding assistance from
Government
Israel’s success factors
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• Services are less risky and produce predictable revenues
• The success of Indian IT majors in services limits the need for product innovation
• Entrepreneurial ecosystem and culture still leave a lot to be desired
• Indian companies lack marketing capabilities including branding and marketing communications
Why India lags behind in products
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There is a world of opportunity
Cloud infrastructu
re
App economy
Domestic market
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• Create a mass-market consumer software service
• Acquire the “first 1 million” customers in India
• Leverage learning and customer base to enter U.S. market
• Trade Indian multiples for U.S. multiples
The “People Arbitrage” Play
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Examples of “People Arbitragers”
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Arenas of opportunity• Education• Human capital development• Logistics• Financial services• Healthcare• Mobile applications• Healthcare services
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What it will take to win in products
Product Investment
Mindset
Marketing Capabiliti
es
Startup Ecosyste
m
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We can do it!
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