There are interesting debates and discussions that come up in professional communities like forums on LinkedIn where many corporate leaders exchange their views and share their opinions on pertinent matters. Thus, a question like what benefits does a US start up IT company see with an Indian Partner company is sure to raise a lot of opinions and answers. The best opinions are of those business people who themselves are part of such ventures. There are success stories of many large and small US companies partnering with Indian companies to start IT ventures. Hence, there are several reasons that can be forwarded as to how such ventures work. Many US companies have found several business benefits out of such partnerships.
The main advantage is that of technical expertise. India is ahead of many countries when it comes to technical talent that is affordable by most start up ventures. It is easy to build up on the capability that exists in such partnerships. Again, the low cost of such partnership ventures allows a company to be able to underbid many of their larger counterparts. However, it is not an easy process to strike up the right partnership with an Indian IT firm. Any joint venture, especially one that is across international borders, brings in a lot of factors besides business profitability. The way of communication, building of trust between two international partners, ethics of conducting business, establishing an effective business process that will be mutually beneficial is no easy task. However, once such criteria work out, and then usually a joint venture moves into a smooth sailing period.
The main reason why US start ups look to India is the talent pool, the business opportunities that they foresee and the promise of access to modern infrastructure and economic amenities of the Indian government. These factors again vary from state to state. However, in general, regarding the first factor, talent pool is wide due to the innumerable engineering graduates available across the country. Nowadays the private engineering colleges and MBA institutes gear up their students for being ready for the corporate world from the campus recruitment stage. From communication skills to technical prowess, there is little investment to be made in the training and development of manpower except for specific patent processes. Again, the special economic zones created in different parts of the country have made it lucrative for many IT startup companies to start off their operations at low costs initially. These zones are not only provided with leniency in taxes and other payments, the infrastructure provided allows companies to take advantage of the same and build world class work campuses.
There is also a growing domestic demand in IT services within the country that such companies can cater to. Not only can international projects be bagged at competitive rates, one can also find a growing market of domestic projects to cater to.
For such reasons, it is no wonder then that there are numerous instances of US startup companies seeking alliance with Indian companies.
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