The Web Gambit

Thoughts on Web Development

The Indian Software Industry’s growing pains

Rajesh Setty had a good post today about the major gaps between large companies and small companies in Bangalore’s software industry. Based on conversations I have had with many former colleagues that are trying to hire in Bangalore, I think he is 100% on the money with the points he makes.

I think the root cause of these problems has a lot to due with the attitudes of the talent. The turnover for software jobs in Bangalore is indeed very high and this has almost become an accepted part of the culture. One of my relatives there has switched jobs 3 times in the past 1 year. In such an environment, it is extremely difficult for a smaller company (even smaller multinationals) to capture or retain talent. Also, the larger companies are less willing to take on a more risky, non-commodity based project because they can’t guarantee that they will have the same staff throughout the life of the project.

A major reason for this is that many of the technical people in the industry see technical roles purely as a temporary stepping stone to management. If an individual is forced to do more technical work for 3 years or more before getting a shot at managment, they may decide to leave for greener pastures. While technical work can be an excellent stepping stone to management, the skills needed for management are very different and can take a lot longer to obtain. Not only that, there just isn’t enough room in any company for too many managers.

I expect that Bangalore and the rest of the Indian Software Industry will likely get past these issues, as they are projected to continue growing by over 30% next year.


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