Navigating the "Skip India" Trend

As the co-founder of Brainium, a Kolkata-based B2B IT services company, I’ve witnessed the complexities of the Indian market firsthand. The recent "Skip India" trend, where some AI and SaaS founders are bypassing Indian clients due to unpaid PoCs, low willingness to pay, and lengthy sales cycles has sparked heated discussions. Having worked with Indian multiple Indian corporates, I understand the frustrations but also see immense potential. Here’s my take on why this trend is gaining traction, what it means for founders, and how to navigate it strategically.

The Pain Points Are Real

The Indian market can be a tough nut to crack. At Brainium, we’ve faced our share of challenges. For instance, during our work with a major Indian corporate, we invested significant resources in a proof-of-concept, only to face prolonged negotiations and delayed commitments. The sentiment on social media, where founders lament that Indian clients expect premium solutions at rock-bottom prices, resonates deeply. One post I saw summed it up: “Indians are 2x hard to convince and 1/4th as willing to pay.” For AI and SaaS startups with high R&D costs, these dynamics like unpaid PoCs, price sensitivity, and bureaucratic decision-making can feel like a resource drain.

Data supports this. India’s enterprise tech spending, while growing, lags behind global markets, with many companies prioritizing cost over innovation. This can be particularly tough for startups like ours, where margins are tight, and every project must justify its ROI.

Our Experience with Indian Corporates

Despite these challenges, our work with Indian corporates (both public & private), like Railtel, ADPC, ADDA, NKDA, IFB, and Welspun has shown me the other side of the coin. For Railtel, we delivered a robust digital transformation solution, streamlining their operations with custom software. With NKDA, we built systems to support urban development initiatives, aligning with India’s smart city vision. IFB’s project involved creating an eCommerce platform for their Fresh Catch brand, boosting their online presence. For Welspun, we provided IT solutions to enhance their operational efficiency. These projects weren’t without hurdles like, lengthy approval cycles and budget constraints tested our patience but they delivered long-term value and built lasting partnerships.

These experiences taught us that Indian corporates can be rewarding clients if approached strategically. They value reliability, local expertise, and solutions tailored to India’s unique market dynamics. For instance, our work with IFB leveraged our Kolkata roots to understand their regional customer base, giving us an edge over global competitors.

India’s Untapped Potential

Writing off India entirely feels shortsighted. With over 120,000 startups, India’s ecosystem is the world’s third-largest, producing unicorns like Zomato and Flipkart. By 2030, India will have over a billion internet users, with the middle class driving 75% of consumer spending. Government initiatives like UPI, Aadhaar, and ONDC are formalizing markets, creating opportunities for SaaS and AI solutions. At Brainium, we see this in the growing demand for our eCommerce, cloud, and AI services, especially among SMEs and funded startups.

India’s talent pool which is home to a third of global STEM graduates also gives us a competitive edge. Our team in Kolkata has built solutions for global clients, while serving Indian corporates. This dual focus has strengthened our capabilities and resilience.

A Playbook for Founders

Instead of “skipping” India, here’s how founders can thrive here, based on Brainium’s journey:

1. Target the Right Clients: Not all Indian corporates are equal. Focus on those with a proven appetite for innovation. Research their budgets and decision-making processes upfront to avoid resource traps.

2. Set Clear Boundaries: For PoCs, define scope, timelines, and costs early.

3. Educate Clients: Many Indian enterprises aren’t familiar with global pricing models. We’ve spent time explaining the value to our clients, aligning expectations and justifying costs.

4. Leverage Local Strengths: India’s cost-effective talent and digital infrastructure are assets. Use them to build scalable solutions, while eyeing global markets for higher margins.

5. Test and Scale: Use India as a proving ground. Our work with Indian clients refined our eCommerce expertise, which we later applied to global projects.

The Counter-Thesis

The “Skip India” trend reflects real frustrations, but it overlooks India’s long-term potential. The issue often lies in execution, poor client selection or unclear terms rather than the market itself. At Brainium, we’ve seen Indian corporates evolve, with companies starting to embrace digital transformation. Writing off India means missing a market on the cusp of explosive growth. A balanced approach like selective domestic engagement paired with global ambitions has worked for us and can for others.

Final Thoughts

As a founder navigating India’s complex market, I get why “Skip India” feels tempting. But our work proves that India can be a launchpad, not a liability. It demands patience, strategy, and resilience, qualities any founder needs to succeed anywhere. By choosing the right clients, setting firm boundaries, and leveraging India’s strengths, founders can turn challenges into opportunities. Let’s not skip India - let’s shape it into a global powerhouse.