Why should corporates nurture startups?
In today’s highly competitive business environment, it is imperative for businesses to constantly innovate so they stay relevant. Most large corporate houses, began life as start-ups, which leveraged their capability to innovate and thereby grow. However, over the years large organizations get too busy with maintaining their brand image, keeping stockholders happy and lobbying governments for contracts that their innovative streak takes a beating.
So in a bid to counter this flaw, business end up acquiring firms assuming they will be able to leverage the latter’s innovative streak to grow. But as history has shown us this doesn’t always work and instead of growth these buys could prove to be burden for the acquirer.
Recently, Nasscom held an event, which bought together promising technology startups and IT bigwigs including Infosys, TCS, Cognizant, Wipro and MindTree. The motive was to provide a platform for young startups to sell their innovative ideas to the IT biggies and thereby get acquired by one of them. While, this trend of being driven by a mutual need will help the entire eco-system in the long run, it doesn’t give startups the right direction.
So what is the solution? Well, we take a clue from what Rajan Anandan had said in an exclusive interview to CXOtoday, “Google, although is a $50 billion company, pretty much operates as a start-up operates as a startup, we fast, we are nimble. We have partnered with Nasscom and other companies to promote startups, because we think it is very critical.”
As we can see corporates do have lots on their plate and innovation being just one aspect, however if major IT companies manage to mentor even a handful of startups, it will not only give the startups a right direction it will also enable the big companies to seamlessly adopt their innovations.
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