[jarnold]

I've worked for start-ups in Silicon Valley and for a large Internet company in Bangalore. From what I observed, a large part of the missing element were skills for new product development. The culture of development is rooted in large-scale projects. Large plans. Big budgets. Huge teams. As such, the type of product development skills for the quick-iteration that is needed for startup development isn't typical practice.

About a year back I was contacted by a CEO of an Indian development house who couldn't find enough talent to build social-media applications. He was trying to figure out if he should outsource his projects to San Francisco or Manhattan.