>>it is more aspirational to join Paytm, Ola, Zomato in India than to work for a US based outsourcer.
Its hilarious you mention this. Those companies are in double digit billion $ debt, with no sight of returning even a single $ in profit back to their investors. Snapdeal recently bombed. Ola and Flipkart are next.
>>It is not even a competition anymore
Competition between whom. IT services firms haven't posted a loss making quarter in their history. And Product firms in India haven't posted a profit making in their history. Which is the real trash here?
>>I'm able to very easily get highly qualified Indians in Silicon Valley to move back and work on something cool in India.
They won't unless you beat Bay Area salaries and award stock options graciously. And that will happen only if you have massive VC backing. Also no one is going to quit their job in a first world country for loss.
>>This is the reason that nobody in India (incl the govt) gives a shit about the H1B rule changes in the US.
A lot of people do.
>>The entire focus of the IT industry is shifting to move up the value chain.
Increased salaries on VCs expense doesn't mean we are moving up the value chain.
>>We are trying to build more Freshdesk in India and sell them to the world... Rather than body shopping.
We were doing that before as well. The IT services firms you see today all started as product companies. In fact they were doing far more tech intensive work than the current breed of product companies will ever do. Most old IT services were early product companies that made banking sotware, embedded systems products and other stuff.
The start reality in India is without a VC pumping billions of $s and then ready to write off, all of it. You largely depend of debt(Why do you think real estate is so hard in India), or you have to bootstrap. If you bootstrap you need the financial discipline of a demon. You certainly can't pay Bay Area salaries to build MVP apps and write HTML/JS.
Most embedded systems start ups which are not in VC fashion catalogue pay peanuts even today.
The sad part of software engineer salaries in India is either US companies pay it, or VCs pay it. If you have to bootstrap, you have to pay atleast 5x less than what somebody like Flipkart pays today.