Tech Startups - Its Importance

Bangalore: CIOs should confer their faith in startups that indulge in emerging trends in technology, in order to have a deeper footing in the IT sector. In recent times, it has been witnessed that a lot of companies turn to tech startups to find optimal solutions to their problems at a relatively faster rate, reports Maryfran Johnson of CIO.

William Hsu, co-founder of startup accelerator MuckerLabs, states, "Startups are a good way to experiment at the edges of your priorities and position your company as an innovator."

The above statement stands corrected especially considering the present scenario in the IT sector mobility, where cloud and consumer technologies are the front runners. In this regard, vendors can play a negligible role enabling a company to surge ahead in the cut-throat competition.

Enter the startups! As CIO Ben Haines of Pabst Brewing has rightly pointed out, “"A lot of startups are not only solving the newest problems out there, they're solving them at a faster rate.”

But just like two sides of a coin, even mentoring tech startups has its pros and cons. For instance, aligning with startups can not only result in the cutting of costs but also lead to simpler contracts which can be implemented without much of a hassle. Moreover, an edge over design as well as a greater access to technology is also provided by tying up with a startup.

But on the other hand, inadequate customer support, lack of requisite financial backup as well as absence of a proper networking system might hinder companies from taking refuge in startups.

Nevertheless, in order for a company to prevail and foster overall development, it becomes imperative to ignore the downsides and avoid being risk-averse. All it takes is for a CIO is to adopt a proper system where adequate time and attention can be devoted to the startups in order to find the most viable solution.

Tracey Rothenberger, CIO of Ricoh puts the above catch-22 situation aptly, “It takes time and direct involvement, but if you're truly getting a unique value proposition that you can't get elsewhere, you have to be willing to invest in this stuff."