Entrepreneurship

Here's Why You Should Launch a Productized Service Out of India

Productized services are a great type of business to launch, and India is a great place from which to launch one. This article explains why.

A productized service is one of the most popular forms of modern business. It combines services – a type of business that is easy to launch and market to potential clients – with a repetitive set of specific steps that can be bundled and sold the same way as a traditional product-based business, like an electronics or food store. One great example of a productized service is Scribe Media, a book publishing service that offers different packages of book ghostwriting services.

India has a specific set of economic conditions that make it a great environment from which you can launch and scale a productized service. From there, you can decide whether you want to exit the business or continue earning steady monthly revenue.

In this post, we’ll describe some of the benefits of launching a business out of India and provide some specific examples of why they are particularly great for a productized service.

The Hiring Pool

The most successful entrepreneurs know that the key to their company’s growth is putting together the right team. Particularly in the early days, employees working at a productized company will determine its success or failure.

India’s overall labor pool contains over 470 million people, significantly more than the entire population of the United States. Recent studies indicate that Indian workers also possess specific characteristics that make them valuable to those starting a productized service.

According to Gartner, not only does India have the largest workforce from Generation Z – those born roughly between 1997 and 2015 – this group expressed a strong desire to learn more of the tech skills that workers will need in the future. About 70% of workers surveyed reported a belief that the adoption of new technologies would broaden career opportunities and access to higher-paying jobs.

And despite some slowdown in growth due to the pandemic, India’s tech sector is projected to continue getting steadily larger over the next few years. Data from the National Association of Software & Services shows that the information technology (IT) sector in India should continue to grow at 2.3% in FY21. As the industry grows, it will require a larger and larger pool of employees with tech skills. Gartner reports that around 27% of India’s total workforce are expert-level digital workers. That number should continue to grow as internet penetration continues throughout the country.

Technical skills are important for many of the most popular kinds of productized businesses, from creative marketing to software development. Digital products are among the easiest to offer in a productized service, if a team with the right skills can be put in place.

Client population

A successful productized service needs a healthy pool of both employees and customers. Many of the same positive traits mentioned above in describing India’s workforce also apply to the country’s consumer sector. The sheer size of the nation’s population gives it significant purchasing power. A study published by Santander projects that by 2030, India will have the third-largest consumer market in the world. Part of the reason for this trend is that India’s current and future generations are showing a trend away from the traditional extended family model and breaking into smaller nuclear households.

Another big business story throughout the country is the growth of digital spending. These days, Indian consumers are spending more than ever before online shopping for items like groceries, household items, and medicine. Data shows that ecommerce as a whole in India grew 36% year-over-year in the final quarter of 2020, with certain sub-industries like beauty and wellness doing double or triple those numbers.

And with a significant part of the country still without significant internet access, there is room for this trend to continue to grow for many more years. Productized services can take advantage of these trends in many ways, with a bit of creativity and smart service bundling. For example, you might set up a productized service that offers wellness consultations for busy workers who feel tremendous stress and pressure because of a demanding career. In the cosmetics space, a productized service might offer virtual skincare consultations to help prospects look and feel their best.

As the consumer base continues to quickly grow and adapt to advances in technology, it will only broaden the possibilities available for productized service entrepreneurs.

Other conditions beneficial for a productized service

For startup companies that have a founder in the United States or conduct a lot of business there, another advantage of India’s current economy is the relative power of the U.S. dollar. $1 in USD is roughly equivalent to 75 INR. Even in expensive parts of the country, it’s possible to live a relatively comfortable lifestyle for around 80,000 INR per month – just over $1,000 USD. That means the purchasing power of a dollar in India goes a lot further than in some other places, such as the United Kingdom or Canada.

The prevalence of English among all sectors of India’s population is another reason it makes for a good home base for a productized service. It’s estimated that over 260 million people in India speak English, far more than other popular countries in Asia for businesses like the Philippines and Bangladesh.

This provides India with a few important advantages related to getting a productized service started. For one, it means you can source talent for a wide range of different positions from the labor pool, not just engineers or back-end team members. It also makes facilitating remote work much easier. Telework was growing even before the pandemic, but COVID-19 has caused a surge in this trend in countries around the world. With remote working, you can scale your productized business in India while catering to companies all across the world.

Finally, the global economy as a whole is set to recover in a big way now that the coronavirus pandemic is much more under control than 2020. The World Bank estimates that the global economy will grow at 5.6% in 2021, the fastest pace after a down period in over 80 years. At 6.8%, South Asia’s projected economic growth for 2021 is even higher than global projections. Although challenges with COVID-19 remain, vaccination rates have been going up all over the world.

Assessed together as a whole, these conditions mean the time has never been better to start a productized service based in India, no matter where in the world you are.

Getting your productized service in India started

Remember that these recommendations are suggestions based on broad trends. With over 1.3 billion people and a wide array of different kinds of cities and towns, India is a multifaceted country with a lot of diversity in culture and professional skills.

To start a productized service successfully in India – or any other country – you need a strong understanding of the specific people you want to target with that service. This understanding can only be cultivated by market research. When you have an idea of the kind of service you want to launch, work backwards by identifying and profiling its ideal customer.

Following this process will get you well on your way to launching a productized service successfully in India. Whether you want to provide consumer goods to small family households or offer digital services to businesses in developing cities, India’s young and skilled workforce and rapidly growing technology sector make it an ideal country from which to launch your next venture.

By 
Raj Kunkolienkar
December 7, 2021

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