These research labs, along with companies like Infosys, have acted as talent incubators, and have accelerated the process of knowledge transfer within the industry. This unremitting flow of skilled, trained personnel through the industry has improved the general competence levels enormously. Nor does it mean that they are all in a perpetual search of fatter paychecks. Today Tejas Networks has employees who previously worked with U.S. technology giants Lucent Technologies and Cisco Systems. All is not smooth sailing, however.
Software development is a high risk venture anywhere in the world.
Indian companies face particular concerns and risk factors. While markets large enough to allow for software sales in profitable volumes exist in Europe and Japan, it is America that acts as a proving ground for most Indian software companies and products. For successful product development, it is vital for companies to keep the market research and feedback loop from their customer markets strongly in place. For Indian companies looking to export to America, their target market is at the other end of the world. Indeed, Mr. Nilekani argues that the world is moving away from licensed software and into customized solutions.