The ongoing tussle between local businesses & tech providers
The enterprise tech community should come together and address tech providers payment issues and tech buyers perceived low value
Lately, I've been seeing a lot of chatter on social media from prominent tech leaders and start-up VCs, with some even suggesting that new tech ventures should completely ignore the local Indian market.
In my view, it connects directly to the ongoing "tussle" between Indian tech providers and businesses. I've seen firsthand the frustration of tech providers who are asked to conduct proof-of-concepts without payment or face significant delays in receiving payments from businesses. This isn't just an inconvenience; it severely strains the working capital of tech companies.
On the flip side, I hear from many business owners who feel that the technology services they invest in don't always deliver the tangible value they expect. For them, "digital is a dreaded word", often due to high costs and solutions that feel "force-fit" rather than tailored to their unique business needs. They tell me they struggle to see a direct connection between the tech investment and improvements in their bottom line. While certain initiatives, such as digital payments, have taken off in a significant way, this disparity suggests that, despite a foundational digital comfort, there is a substantial gap in understanding and leveraging technology for deeper business outcomes.
Ultimately, I believe breaking this cycle requires a concerted effort from both sides. Organisations are seeking holistic digital solutions, but many service providers lack the capability maturity to deliver them comprehensively. Conversely, providers often try to sell advanced solutions to organisations that haven't yet established basic digital maturity, leading to a mismatch. Bridging this digital maturity gap between organisations and the capability gap of service providers is crucial for achieving significantly better outcomes in the local IT supply chain.