Prabhu' blog

A blog detailing my business activities What i was upto and my notes and stuff... How to go about company and entrepreneurship

Sunday, December 10, 2006

innovating to stay afloat....

In the past one week, I have seen 3 of the companies which I know, struggling to stay afloat and maintain operations. Small startups face a host of issues ranging from access to capital to recruiting and retaining resources and these companies have been plagued by the problem of retaining resources.

Now that the market for IT is hot in India, what can be done to tackle this potential problem? The attrition rate is very high even in big companies and resources come at a high price tag and small companies find it difficult to attract talent and retain them.

Money is the buzz word and loyalty to the company has taken the backseat.

What should a startup do to tackle this problem? In what way can a startup company protect itself from this growing demand and sky rocketing salaries.

To solve this crunch, I have been always thinking about coming up with a new innovative solution. The ideal way would be to go open source paid. This can help in new hands coming into the company.

The one way to overcome the disadvantages of a part time team would be to maintain a core team which is 4-5 in size and recruit as much in the open source paid model.

People would say that there are some disadvantages to go on an open source paid note.
The company may not be able to develop much in the form of intellectual property.
But again a way out of this would be to split the project into multiple modules and hosting each solution separately and as a separate authentication. In this way the company can make sure that by coming out with an open source way of tackling problems, they still can continue to protect the code and build intellectual property.

The situation calls for radical thinking and for small companies without substantial financial banking, there is a strong need for an organization to come out with a fool proof model to execute projects in this open source paid manner. This calls for a change in the internal process and operating guidelines of the company.

Rather than going under and closing down operations, I would advice companies to try out and perfect such innovative techniques to beat the competition and at the time maintain a low cost of operation.

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