Remote work isn’t so ‘remote’ anymore: Sridhar Vembu

Whether it’s through ‘Cliq,’ the web meeting platform developed by his team that he pitches as a product that can take on the likes of offerings from Salesforce, or his constant emphasis on creating R&D labs, Vembu’s focus on setting up desi institutions of excellence has always been his calling card. In an interview with DTNext, he talks about the opportunities and threats in a post-pandemic India.

Even before the coronavirus-induced lockdown had set off a global panic, putting in motion a culture of work from home, Vembu’s business had a homecoming of sorts in Tenkasi, which is one of his key development centres. “The next five years will revolve around cloud-centric businesses,” he says, explaining the rationale of Zoho spearheading the cloud-enabled rural revitalisation strategy. He believes the scope of high-value design and R&D jobs will be moving increasingly to remote corners of the world. That is a welcome sign, as the exposure and the opportunity to work on cutting-edge software services will “inspire” rural participants (read kids, in his words), who are aspiring for a better standard of living.

“Rural development will definitely benefit everyone, and with broadband to be the catalyst for improving communication following the PM’s announcement of fibre optic network connectivity to every part of the country, the movement of tech jobs to rural areas is a certainty,” Vembu says. He even highlights his company’s efforts to set base in transnational locations, with 50 per cent emphasis on rural areas.

If the 15 satellite offices covering places like Coimbatore, Madurai, Tiruchendur, Theni and Tirunelveli are any indication of Zoho’s expansion drive in Tamil Nadu, his plans also include states like Kerala (two centres), Andhra (two upcoming ones) and North India (at a later stage). A similar strategy will be replicated for other global locations like the US, Japan, Germany and Europe.

Vembu believes the business environment is getting better though he dispels the misconception about the ease of setting up ventures in the US. He says, “It takes anywhere between six and nine months to build an office in the Bay area, but we consider it as a norm and tend to complain when such a timeline occurs in India.” The leader, who is known for shunning private equity funding or venture capitalists, laments that the R&D mindset in fundamental technologies is lacking in India. “We need a lot more innovation in fundamentals be it semi-conductors or even in electric vehicles space. This cannot be attributed to government but it is the private sector that has to step up its efforts in this direction. Since R&D is risky and not a cause and effort estimated exercise, it does not attract private players,” Vembu says. He adds that the mindset to run a lab is different from that of running a factory.

While the explosion of ed-tech, fintech and such new models of business is welcome, the Software as a Service pioneer is quick to point out the need for creating enterprises that will address the trade deficit the country has. “We must figure out the kind of commodities that India can sell to China,” he says, and calls for identifying relevant businesses that have the potential to generate huge volumes like medical equipment.

Vembu is clear that investments have to be made on building rural infrastructure that is arising out of a “reconfiguration of the economy,” albeit gradually. “While some changes are real, we must also realise growth cannot be perpetual. We have to focus on remote tools that will support WFH or technologies for e-commerce and such businesses as drone-based delivery applications and other emerging solutions will emerge in the future,” he says.