Monday, March 14, 2005

How India Became a Global Force

by Staff Correspondent on January 31, 2005 04:44AM (EST)
According to a study conducted for the World Bank Institute in Washington, D.C., by Evalueserve, a business intelligence and research firm Indian professionals, venture capitalists and entrepreneurs of Indian origin helped promote India as an outsourcing destination,. The subcontinent will retain its edge because of the growing influence and expertise of the Indian diaspora, particularly in the United States, Canada and the United Kingdom, the study concluded. A key factor in favor of India is the increase in organized networking and mentoring that the members of the diaspora community can provide to businesses engaged in outsourcing, according to the study. By the 1990s, many Indian engineers, who started moving to the United States in the 1960s, had either become entrepreneurs, venture capitalists or senior executives in large and midsize companies, according to the study. Many of these professionals started their own firms in India, while others persuaded their companies to hire Indian IT professionals. This provided more visibility to the Indian talent pool and resulted in the strengthening of the diaspora.

Some venture capitalists in the United States, particularly those of Indian origin, are funding companies that have back-end operations in India to save on R&D costs, the study found. As of March, more than 150 U.S.-based startups had some back-end operations in India; by March 2006, the study estimated that this number will likely double.