Think big with small companies. That's the strategy of Oracle Corporation, the $1 billion world leader in database and enterprise software, has adopted for India and other Asia-Pacific countries.
Already, small and medium sized companies make up about 50 per cent of the company's customer base, and the company wants to see that grows constantly.
According to Derek Williams, executive vice-president (Asia-Pacific division), while other software companies focus on multinationals only, Oracle believed in exactly the opposite.
"Focusing on multinationals is an easy option. But we don't believe in such short cuts. Small, home-grown companies in the region will be our growth drivers," Williams said.
Asia-Pacific operations already contribute to 20 per cent of Oracle's worldwide revenue.
The company has already launched a pilot project on a variant of its e-business suite specially aimed at the mid-market segment.
Called "e-business special," this will be launched in other Asia-Pacific countries as soon as it's successfully rolled out in China.
Williams feels Oracle has tremendous growth possibilities in India. While there is a tremendous cost advantage in running operations in India, the country is developing as the call centre to the world, and can be a world leader in business process outsourcing.
"We expect a vibrant market growth. As Indian companies globalise, they will have to invest in database, e-business technologies and applications, all of which are areas of Oracle strength."
Adds Richard Jewell, vice-president (manufacturing and supply chain execution applications), the time difference between India and the US is another compelling reason for Oracle to expand its presence in India.
"Oracle computers never sleep because of our Indian operations. While our Redwood Shores (the company's headquarters) developers retire for the night, our Indian colleagues take over. This is a huge advantage," Jewell said, adding Oracle's Indian team was doing exactly what its US centres are doing. "It's like a virtual team. In software R&D, location is meaningless."
Oracle's India development centres in Bangalore and Hyderabad develop everything from the Oracle products family of database, tools, applications servers and e-business applications.
This involves development, product management, maintenance, quality engineering, documentation and release.
Jewell, however, said the company had no immediate plans to significantly increase its 2,500 strong staff strength at its India centres.
Despite all the bullishness about India, Oracle executives, however, put China far ahead in their priority area.
Reason: China's economic growth rate of seven per cent per annum makes it the engine for growth in Asia.
Says Williams: "We are delighted about our Indian operations. But look at the huge migration of manufacturing from other Asian countries to China. While it may be bad for the particular country from where the migration is taking place, it's an opportunity for Oracle," he said.
The poor pace of privatisation in India and the wide variation in the mindset among different state governments is a big area of concern.
While Andhra Pradesh and Karnataka governments had been hugely receptive, other state governments had been painfully slow in taking decisions.
"This is the painful reality in India but we have learn to live with it," Williams said.