Going global and operating in foreign countries and markets is challenging and intimidating. However, Indian ICT firms may not be able to avoid going abroad if they want to create innovative products at the rapid pace necessary to compete with other businesses in the global and digital ICT setting. Finland offers incentives and advantages that make going global smooth and successful for Indian ICT firms and Indian tech SMEs can reap major advantages from taking their business to Finland.
Why Going Global Is A Pressing Concern For Indian ICT Firms
The current wave of global tech trends is strongly focused on technologies such as AI, IoT, AR/VR, Big Data and Analytics, Blockchain, smart technology and more. Indian companies are striving towards making their mark in these fields and capturing a part of the vast marketing which potentially reaches billions in demand for products.
India is well known for its strong IT talent and for IT services and solutions. Indian companies have strengths in innovation and passion and drive. However, the face roadblocks at home that can keep them from fulfilling their potential.
Indian firms lack a strong and mature ICT and business ecosystem, must cope with uncertain and bureaucratic governmental support and processes, lack of IP protection, lack of funding and lack of access to the latest in research and technology and a lack of skilled talent.
In the current tech scene where tech developments are unrolling rapidly and products and technology can become obsolete almost overnight, it is vital for the survival of tech firms to access the latest in tech developments in order to create the most up-to-date and relevant products and compete in the global market.
The Challenges Of Going Global
Many Indian ICT firms are reluctant to take their firms to a global level. It is, after all, a challenging and intimidating prospect. This is especially the case for SMEs as they inherently have financial and size limitations that make the dream of expanding abroad a distant possibility. There are several roadblocks that create concerns for small tech firms:
Lack Of Knowledge Of Foreign Rules, Laws And Standards
The idea of coping with an entirely new system of rules, legal actions and standards can appear extremely difficult, expensive and time consuming. Legal systems in foreign countries are by nature more demanding and exacting when it comes to following rules. Indian companies can feel overwhelmed and challenged by the legal complexities, the potential for making mistakes and the time and effort needed to manage and enter into these things.
Lack Of Funds
Going global, establishing one’s firm in a foreign location is a considerably expensive process. Travelling, paying various licenses, hiring talent, renting or buying space, setting up an office, machinery etc. creates huge costs especially since these things are at a higher rate abroad.
The time and effort taken towards going global can be quite a lot and these resources could have been used towards other efforts. Going global can be a painstaking process going through legal processes, awaiting the host country decisions, visas, permits for various activities etc.
Risk And Uncertainty
Risk and uncertainty form a necessary part of doing any kind of business. However, these are magnified due to the lack of knowledge a firm has of foreign markets and the increased expense and investment required to establish themselves in a foreign country.
Firms need to be cautious about making assumptions regarding cultural similarities in foreign countries. They need to learn about country and cultural differences and adapt themselves to such differences. Learning foreign languages and adapting to cultures adds complexity to the learning process.
Branding And Home Country Perception
Foreign businesses and markets may have a biased view towards technology companies in India. India is known for its tech talent and services, but not as much for innovation and products. Thus, Indian firms may struggle to find clients, partners etc. in a foreign country. Considerable effort and money may be required for rebranding, sales efforts and others.
Lack Of Interest In R&D
Indian firms are typically little interested in R&D which is against their own interest because R&D is a must for innovation and innovation is essential for businesses to survive. Doing R&D requires substantial investment in talent, equipment, space and other assets. The difficulties of doing so, when generic products are more easily rewarded in India can be an internal obstacle for Indian firms.
The Finnish Roadmap To Successful And Smooth Globalization And Innovation
While the challenges and difficulties of going global cannot be understated, there are options, that if Indian ICT businesspersons are aware of, can greatly alleviate their reluctance and difficulties of going global.
There is a unique location in Europe where all the above mentioned difficulties are met with solutions and where there is an added bonus of accessing the best talent and technology the world has to offer.
Finland is the game-changer as a location for Indian firms as the country has one of the world’s best business ecosystems which is oriented towards collaboration, co-operation and making doing business as simple, direct and fast as possible without any compromise in quality, transparency and universal benefit.
For every problem mentioned previously for Indian firms struggles towards going global, Finland offers solutions that make the process smooth and successful:
Mature And Collaborative Ecosystem
The Finnish ecosystem for ICT and business is well established and cohesively working. Organizations such as Business Finland and the various Ministries work cohesively with individual businesses of all sizes, research institutes, investors, universities and others. For Indian firms, the setbacks and roadblocks to exploring and understanding the ecosystem and becoming a part of it are minimal.
Top Transparent And Stable Country In The World
Finland is one of the world’s least corrupt and most transparent countries. This means that Indian companies can have the least possible fears regarding dealing with officials, bribery, bureaucracy or political and legal instability.
Ease Of Doing Business
Finland ranks highly in the ease of doing business index and is rated as one the best business locations to set up a businesses in in the world. Systems are entirely online and streamlined and processed diligently with the least possible obstructions. There is a very short span of time required to set up a business here, in some cases a few days or usually a few weeks. This saves firms from time, extra expense, excess effort and stress.
High R&D Investment
Finland uses a significant percent of its GDP towards investment in R&D, supporting businesses in Finland to develop new products and innovations. The budget for funding R&D in Finland for 2017 was 1797.5 million EUR. Companies that choose to establish themselves in Finland can access this pool of funds without losing equity.
Finnish Branding And Reputation
Finland has a strong reputation for innovation, high quality and technology products. Indian companies can leverage the Finnish brand and reputation to find more receptive global audiences.
Best Tech Talent Force In The World And Competitive Payscale
The Finnish education system is the best in the world. It is also highly technically oriented and home to a large number of ICT professionals. Especially since the restructuring of Nokia, skilled workers are available for a payscale that is vastly less than that of USA and Israel, but without compromising quality.
Best Education System In The World
The Finnish education system is widely known as having the best education system in the world. They are also heavily tech oriented and there are numerous high quality and world class Universities which are heavily research oriented and focused on practical learning and application of studies in to real life situations. This means that companies hire talent with practical work skills.
Business University Collaborations
Universities in Finland also collaborate extensively with businesses. Students can be involved in developing a company’s products based on different agreements between the university and the business.Hence, Indian firms can access highly skilled talent and also benefit from accessing well equipped research centres and testing platforms which can be provided by these universities.
English Is Widely Spoken
Over 71% of the adult population in Finland speaks English at a very high level. Finnish people are familiar with international business from early exposure to its neighbouring countries and the need to trade with other countries.
Ease Of Access To EU And US
Finland is especially located between the East and the West and is well connected to other EU countries. It is also easily connected to US and other countries. Business Finland also aids businesses to expand to foreign markets and grow.
Indian Firms Face Globalization Challenges Through Footholds In Finland
While going global for Indian firms can be challenging and pose valid concerns for Indian ICT firms, the benefits and need for doing so cannot be avoided. These problems, however, can be mitigated by entering the right location where the economic and governmental set-up is highly oriented towards assisting businesses.
From the description of Finland’s ecosystem given, it is clear that Indian firms will find it most effective, quick and smooth to enter Finland to begin their globalization journey as well as to develop their products by accessing top talent and technology.
Indian firms, regardless of size, don’t need to do it alone but can work with PrEver, the only consultancy in Indian partnered with a Finnish governmental institution, towards helping businesses go to Finland. Indian ICT firms are certain to find success, achieve their business and innovation goals by entering Finland.