##What are we lacking?
There has definitely been a huge growth in the IT & services sector over the last decade, primarily being the backend desk for global majors. We are still doing pretty much the same thing – offering code-based services to the world, mostly white-labeled. Companies like Infosys, Wipro and TCS made thousands of crores with this model. But, these companies never attempted to develop OEM “products” like Salesforce, SAP, Oracle, Microsoft do. In the meantime, our engineers are toiling in various MNC offices across India contributing to R&D of world class products and making the MNCs create orders of magnitude wealth for their shareholders.
In a consumer-centric economy, roughly 80% of technology based products or gadgets used by an average Indian belongs to companies that are either Chinese or Japanese or Korean or any other country. To be specific to the consumer durable, electronics, automobiles and technology gadget industry, home grown companies hardly make themselves counted amidst the plethora of imported brands. Even more, there is not ONE SINGLE Indian product brand that commands a premium perception within this segment. 68 years of independence and we haven’t been able to produce a single Indian product brand that has a global appeal.
A global report commissioned by the Queen Elizabeth Prize for Engineering has revealed that while just 20% of 16 to 17 year-olds from the UK and 30% from the USA are interested in an engineering career, in India the rate is as high as 80% - the highest in the world. We need more entrepreneurs and corporate rethinking about value creation. Indian companies need to consider investing in brands as a long term benefit and stop looking at it as a cost. Creating a global product brand is a major challenge facing Indian companies. While we can still debate on the lack of infrastructure, there is no excuse for not being able to design products indigenously.
Source: Boston Consulting Group