Why are large Indian companies putting that extra effort to work with the start-ups now?
The cover story this time focuses on how the Indian corporates are working with the start-ups here to derive business value, resulting in a win-win for both.
But before you go to the hows, it is not a bad idea to start with the whys—the imperatives of what has made this change—being talked about for long; but finally happening on the ground only now.
So, why are large Indian companies putting that extra effort to work with the start-ups now?
- It is fashionable. Well, do not get shocked I put it first. While it may not be the No 1 reason while taking the final decision on a start-up collaborative journey, it is often the No 1 reason to get interested. Being part of the community, you know quite well that this community is quite hype driven. And start-ups are the current hype. My apologies if this sounds really mean. Let us go to some more ‘logical’ reasons.
- Only start-ups can offer some of the emerging technologies. Like it or not, many of the new technologies such as AI, machine learning, advanced analytics, IoT and their applications to specific verticals are available only with the start-ups.
- Startups are willing to walk that extra mile. For a large enterprise user, start-ups are keen to do the tweaking to their solutions based on the actual need. Both from business and reference point of view, it makes tremendous business sense.
- The cloud platforms are felicitating it. Another real big factor—and arguably what has changed the game—is the hyperscale cloud providers like Amazon, Micosoft and IBM bringing in their partners.
Cloud has impacted the game in more ways than one. It has ensured that a start-up focuses on its core innovation and quickly plugs in horizontal APIs like UX, security, analytics, even AI-based bots, already available on the same cloud. So, go-to-market for the solution is quicker and easier.
Cloud has minimized the needs of integration. Earlier, a stand-along solution required a lot of integration services around itself, which was often not available easily.
Finally, a cloud-based solution comes with the backing of a big name. That gives a feeling of assurance.
Yet, the collaboration that is happening is still in an experimental stage. If Indian enterprises accelerate their transformation journey, they will continue to need the start-ups. If that slows down for some reason, the partnerships may be impacted too.