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Why Young Entrepreneurs From Silicon Valley Prefer To Build A Team In India


You could use many adjectives to describe Silicon Valley; I don’t think ‘normal’ is one of them. – John Collison

And indeed, when we hear words like innovation and advanced technology, Silicon Valley cannot skip the mind! Frederick Terman, the renowned dean of the Stanford School of Engineering, came up with an idea for the college’s faculties to start their own companies. This would give budding engineers and experts the entrepreneurial exposure that they need to grow as a professional. And today, the world-leading technologies, such as Hewlett-Packard, Intel, and AMD (the list is exhaustive), are all established by Stanford Engineering alumni.

The one reason that Silicon Valley is still flourishing is because of ideas! It facilitates innovative and out-of-the-box thinking. The result is not unknown to anyone today. But, ideas alone cannot turn into big companies.

Ideas need to be accompanied by the right mix of resources, infrastructure, a culture that motivates development, and most importantly, investments.

It is no wonder that a region that can provide excellent engineers, a venturesome culture, abundant investors, and top-notch universities is a thriving place for technology start-ups!

This brings us to the blog topic, why Silicon Valley startups prefer to build teams in India.

How India is emerging as the next Silicon Valley

Stands in the list of Top 50 innovative countries

India is a hotbed of innovative ideas. The rapid growth is also evident through multiple successful startups and small businesses such as Instamojo, ixigo.com, Unacademy, Nykaa.com, and Shuttl.

The worldwide standard measure for Innovation is considered the Global Innovation Index (GII), which keeps improving India. In 2015, it ranked 81st, and in 2019 it ranked 52nd. This year, it has progressed and reached the top 50 countries by securing the 48th position on the GII list.

Accounts for 25% of engineers in the world

Setting up a team for start-ups means hiring the best people to ensure success. Hence, talent availability is a must, and India provides a favorable ground for the same.

India is home to 25% of the engineers produced worldwide every year. With legendary technology institutes such as IIT and NIT, education is of high quality in India. Also, diverse engineering courses ensure that organizations can handpick the best talent for their needs.

Infrastructure at the lowest investment

When it comes to setting up teams offshore, infrastructure is a crucial factor. Without it, the teams cannot perform optimally. Acquiring and providing the infrastructure at a minimum cost is what businesses look for.

When compared with infrastructural costs in developed countries, infrastructure in India costs only a fraction of it. This enables businesses to cut a few more dollars while setting up offshore teams in India.

Full support from the Indian Government

According to a recent survey, the software industry in India will grow to USD 350 billion by 2025, and BPM will account for USD 50-55 billion of the total revenue. Special economic zones, IT industry parks, subsidized rates of electricity & telecom for IT companies, and investment-friendly policies have made it easier to outsource or offshore to India.

From the above points, we can establish that the software industry in India has a similar background to that of Silicon Valley. Hence, Silicon Valley startups prefer to have offshore teams in India.

Despite all the above advantages of setting up a team in India, businesses have their challenges to move ahead with offshoring.

Why businesses hesitate to build offshore teams, and how can they overcome these challenges

  • Legally incorporating an organization in another country without a clear vision is risky, especially for startups and SMEs.
  • Managing an offshore team can be a daunting task. Keeping the team productive and aligned to business goals is another challenge.
  • Processes, such as hiring, on-boarding, and providing the right infrastructure, can only add to the complexities and divert businesses from their core functions.

How can co-employment organizations such as Braves Technologies help you to set up efficient offshore teams?

Addressing the above pain points of businesses to set up an offshore team, co-employment organizations and offshore software development companies have come up with a unique business model. Their main motto is to enable organizations to grow their teams without any operational hassles. For this, they look after the entire hiring, managing, and operating processes. All you get is the benefit of an offshore team that adds to your efficiency and productivity.



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