From Corporate to Startup: Breaking free of the Golden Handcuffs

Times are a changing! India's own cyber valley has evolved from the so-called 'coolie-valley' to Startup Valley. The corporate goldrush and the pure-play low cost outsourcing, is seemingly receding and with the US reportedly entering a recessionary phase, a clear sense of the way ahead in India is emerging.

The big 5 Service Giants, and all the Worlds Biggest brands put together are finding it difficult to hold onto their 'prized leaders' any longer. There is a whole bunch of senior executives waiting to break free of their 'golden hand-cuffs'.

Reason: Life Stage!

It is my firm belief that the India of 2008 is way different from that of 2003/4/5. Why you may ask and here's my answer...

1. Boredom: The Global biggies (atleast in the IT World) read IBM, Accenture, EDS, Cisco, MS, (feel free to add to the list) are no longer a novelty in India. They are large in India as well.. and that in itself is the problem. As size increases, processes take over and role decreases, excitement wanes and the superstars of the firm get bored.. Well that's the best word to define reality today - Boredom.

2. Financial Security: A lot more Indians are financially secure today - when compared to 2 or 3 years back. With the great IT Salaries and attractive increments, money is no longer the primary motivator for a significant populace of middle and senior level execs. Besides, the smart folks have also invested in Property and the buoyant stock markets.

3. NRI growth: The return of the NRI's back home is another key factor. Having spent years abroad - securing their lives and that of families, they are looking to 'give back' or do something out of the ordinary. Do they want to join a 70,000 plus organization as 'another' Director? Most likely Not.

The above 3 factors has created this increasingly restless community of Executives trying to break the shackles of their 'Golden Handcuffs'. The Big Question - Where Do We Go??

Verdict: Life has come full circle. Time to get into a startup. The VC's and PE's are back and the Angels are coming. People are ready to take the plunge given their 'Life Stage'. This is the key to the next new wave in our evolution - The ENTREPRENEURIAL WAVE 2.0 - The Real Thing! (Unlike 2000). Wait and Watch.

Startups and Indian culture

Had a very interesting meeting with a leading venture capitalist this morning. We got talking about how finding the right fit for a startup is such a challenge in India. Here are some examples which tell the tale:

1. 'I don't mind compromising on the bonus which I presently get in my organization, but my fixed component must be preserved'. Stocks over and above this, of course!
2. 'I have invested in two properties and a house in Palm Meadows (Bangalore's hottest NRI destination). My EMI cost itself works out to xxx. Obviously one needs to take all this into consideration.'
3. 'I have already worked in a startup once before, but one of the things that I did'nt like was that basic things like a HR Policy were not in place, add to that the fact that many times there was no water in the water cooler".

Well, thats exactly why these organizations are startups. Do people join startups thinking purely of stocks and cashing out! Well, what we realized is that what is missing most often is the right attitude... Can this person work in a vacuum where he needs to clean his own ...

Add to that, can he or she prepare for that one big time in their life where they do something for the sheer glory of doing it and nothing else. Are prepared to feel good about what you've done and go through, even if you fail and lose money!

These are deep incisive questions that anyone considering a startup organization must consider.. else, you will be a fish out of water.

This apparently is the difference between India and Silicon Valley.