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Indian Software Service Shops – Are they working for Indian Startups.

This is a question on state of software development shops in India.

1. What % of their clientele is Indian vs International. 

2. Is it is predominantly International, where do Indian startups and Indian companies get their development work done from (assuming there is enough work). 

3. Brings me the the main question. How does an Indian startup with no tech founder get their product out without paying $50 per hour rates. (“Not possible at all” is the answer I have currently). 

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  1. not possible.

    and i ask why should you get great international class services for free?

    At most, give them some % in your company…

  2. Thanks Alok,

    I am sure no one in their sane mind expects good quality service for free. But none of the service companies also want % and most of them are right in their reasoning for not doing so. 

    The question is still remains that given the purchase power parity, are indian entrepreneurs spending $50 per hour to make a product or most of them are just building it on their own. Is this cost exorbitant for starting a tech based venture targeted for Indian consumers if you don’t have a tech founder.  

  3. Hi Vivek,
    I’ve no expertise in IT but let me give some points based on what I know.
    The Indian start ups in my view can take the help of other start ups or mid sized companies who have development expertise. Probably some of them are doing this already.
    Further, some could tap freelance websites such as Elance to hire individual consultants or small development firms and hire them on contract basis. Some of them use even offline contacts or probably other forums to tap consultants or firms to manage their jobs. However, the large IT firms of Multinational IT firms may not provide service to start ups….but there are few ads, news, etc about some large companies working with start-ups to provide cloud services. Since I’m not an expert I’ll not be able to explain exactly how it works. Probably someone from this field can give examples and comment further on this.

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