There's
Asok the intern, obviously a corruption of Ashok, and hence an Indian
in comic strip Dilbert.
There's McKinsey CEO Rajat Gupta, the first
non-white, non-American to hold down that position in a firm renowned
for its East coast hauteur.
There's Anup Gupta, Bill Gates' Man Friday
on matters technological.
And there is the newest of them all, Arun Sarin,
who has just been named Chris Gent's successor to the CEO's post
at Vodafone, the world's largest mobile phone company.
The accelerating trend of Indians becoming
chief executives or holding down senior positions in global corporations
shouldn't surprise anyone.
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Vodafone CEO-designate Arun Sarin is the
newest Global Indian Chief Executive |
Beginning the 1960s, the best and brightest
from India's finest engineering schools-notably the Indian Institutes
of Technology-have headed for the United States to study, work,
and often enough, stay back, sometimes entire batches of them. "I
was part of the class of 1968 at IIT Kanpur," recollects Saurabh
Srivastava, Executive Chairman, Xansa Systems and President of the
New Delhi chapter of The Indus Entrepreneurs, tie, a technology
mentoring network founded by some Silicon Valley Indians. "Out
of the total class strength of 200, 150 went abroad." McKinsey's
and Microsoft's Guptas are from IIT Delhi. Arun Sarin, from IIT
Kharagpur; Rono Dutta, the ex-President of United Airlines, from
IIT Kanpur. It takes between 15 years-people who achieve this are
very very good, or very very lucky, or both-and 25 years for an
entry level manager to make CEO. The first wave of Indian techies
who went to the United States to study got into research or academia,
or came back after a few years. It was only in the 1970s and the
1980s that Indians entered the global corporate mainstream. Expectedly,
it was in the second half of the 1990s that a clutch of Indian execs
was named CEOs of global corporations. "As IIT graduates progressed,"
explains IIT-Kanpur, HLL, PepsiCo India, and Reebok India alum and
now Reebok International's brand head Muktesh Pant, "there
was a beneficial rub-off on all Indians." "Today, as a
single ethnic group, I think Indians are the most respected professional
managers."
Post 1991, when India took its first tentative
steps towards an open market, and, to some extent, even before that,
multinational companies operating in India had realised that there
was a motherlode of executive talent waiting to be mined in India.
Today, PepsiCo's global system has close to 15 managers who have
moved from its Indian subsidiary; Unilever's, over 60 managers who
have moved from Hindustan Lever Limited; and GE's, over 100 managers
who started off with one of the several GE subsidiaries that operate
in the country. There's Reebok's Pant. And Reckitt Benckiser's operations
in the UK and Ireland are headed by an Indian, Rakesh Kapoor, who
joined the Indian operations as a Regional Manager (North) in 1987.
Every Indian who enters the global network of his or her company
and performs well increases the chances of those coming later; "I
was the first Indian manager in our bank," says Aman Mehta,
CEO, HSBC Corporation. Now, there are around 75 Indian executives
in HSBC's global operations.
Technical expertise, command over the English
language, and a hardworking nature make Indians successful globally |
At Home Abroad
Some credit for the globalisation of the Indian
exec should go to the culture of meritocracy (recent, still) in
most global corporations where the best person, irrespective of
colour, caste, religious affiliations, or social networks, gets
the job. But the Indian executive comes armed with several traits
that guarantee acceptance and success in a larger, global context.
"The cultural outlook of India bestows Indians with a liberal
outlook of life," says L.M. Singhvi, who served as India's
High Commissioner to the UK between 1991 and 1997. "They are
more at home at other countries than other immigrants." A study
of ethnic minorities in Silicon Valley shows that Indians are far
ahead of Chinese and Taiwanese in terms of managerial and executive
positions occupied: 67.5 per cent of the Indians surveyed were in
such positions as compared to 55 per cent of the Taiwanese and 22.9
per cent of the Chinese surveyed. "Despite their relatively
short stay in the United States this indicates that Indians may
have advanced relatively rapidly up the corporate ladder,"
says the study's author Rafiq Dossani, a senior research scholar
at Stanford's Asia/Pacific Research Centre. "Though both Indians
and Taiwanese work primarily in managerial positions, Indians appeared
to have risen higher; this may reflect language difficulties for
the Taiwanese, or their relative lack of MBA degrees." Umang
Gupta, the Chairman and CEO of Keynote Systems, a Silicon Valley-based
internet performance management systems hotshop agrees with that
analysis. "Our technical expertise, command over the English
language, hardworking nature, and the fact that we were difficult
to discourage made a big difference." Some credit for this
should surely go to the IITs and the Joint Entrance Examination
(JEE) they conduct that ensures that, on an average, one in every
52 applicants gets in.
There are other factors that make Indians ideal
global exec material: the ability to learn and adapt; the capacity
to deal with uncertainty; and the facility to work in teams. The
Chinese, for instance, make poor team-members. Nurtured in a command
and control culture they'd rather take orders (or give them).
Founding a company was seen as the only way
for Indian techies to break through the glass ceiling |
The Techpreneurs
It is safe to describe a people as having arrived
when a significant number make the difficult shift from executive
to entrepreneur in an alien culture. There have always been the
UK Indians, traders, essentially, whose sons and daughters went
on to build professional careers for themselves. There have also
been the rare trading conglomerates such as the one run by the Hinduja
brothers. But Indians were not really considered entrepreneur-material
until the emergence of a large (and still growing) population of
technology entrepreneurs in the United States.
The techies did it because they saw founding
a company as the only way to break through the glass ceiling. As
Kanwal Rekhi, Chairman, The Indus Entrepreneurs, a serial entrepreneur
himself and now CEO of Ensim, a California-based web hosting automation
software company puts it, "Indians were seen only as good techies
and it was very clear that they would not be promoted to top management."
"I would not call it racism; it is just that there was no precedent."
People like Rekhi and Vinod Khosla, one of
the co-founders of Sun Microsystems and now a partner at venture
capital firm Kleiner Perkins Caufield & Byers-some 40 per cent
of its portfolio is made up by Indian-led or founded businesses-were
the pioneers. Those who came later benefited from their experience,
and their networks.
Indians are not known for their network-mindedness,
but the Silicon Valley branch seems to have transcended this genetic
shortcoming. As University of California researcher Anna-Lee Saxenian
wrote in a study titled Silicon Valley's New Immigrant Entrepreneurs,
"These networks are not simply local. Silicon Valley's new
immigrant entrepreneurs are building far-reaching professional and
business ties to regions in Asia. They are uniquely positioned because
their language skills and technical and cultural know-how allow
them to function effectively in the business culture of their home
countries as well as in Silicon Valley.... Silicon Valley's Indian-born
engineers have played a more arm's-length role, linking technology
businesses in Silicon Valley with India's highly skilled software
programming and design talent. These long-distance social networks
enhance economic opportunities for California and for emerging regions
in Asia."
The great tech meltdown may have spoiled the
Indian-entrepreneur-in-the-Valley dream some, and several of the
names that made the headlines as high profile Indian CEOs of global
corporations-Rana Talwar at Standard Chartered, Rakesh Gangwal at
US Airways, Shailesh Mehta at Providian Financial, and Jim Wadia
at Arthur Andersen-may no longer be around, but the great Indian
dream lives on. It hasn't been a fairy-tale ending for most: as
London Business School academic and renowned management guru Sumantra
Ghoshal puts it, "the record of those who made it to the CEO's
post isn't very good." And several Indians have achieved global
entrepreneurial success out of India, primarily in the area of technology.
Still, there's nothing like a Indian CEO of a global corporation
like PepsiCo-Chief Financial Officer Indra Nooyi may have a shot
at that post-or McKinsey when it comes to good PR.
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