I Wish I Knew Then | Dr Anand Deshpande, founder, Persistent Systems

He returned to India from the US long before it became fashionable to do so. He dreamt of being ‘his own man’, little knowing that it would need lots of persistence. From fighting for office space, to coming to the realisation that relationships come first even in business, the founder, chairman and MD of Persistent Systems shares the lessons he learnt while building his business.

I completed my doctorate in computer science and engineering from Indiana University in 1989. Soon afterwards, I joined Hewlett-Packard Laboratories in California and stayed there for 17 months. Then, I decide to head back to India—not a popular option in those days. I remember people smirking when I discussed my future plans with them, including my decision to set up my own company.

In 1990, the Department of Electronics was setting up a Software Technology Park (STP) in Pune to simplify import and export processes for the software industry. It seemed the right time to act. The government allocated land to 13 companies in March of that year.

Though Persistent Systems was not established as an entity, we were promised space upon incorporation under an extension of the scheme. In May, after all the paperwork was done, we waited for our share of land. But nothing happened for nearly six months. None of the companies in the STP started operations, nor was additional space acquired. Despite our orders to start building, we had to wait till March 1991 to get the space.

Frustrated, I wrote a letter to the then secretary of the DOE. I griped over the hypocrisy of the government: on the one hand, it wanted us to return to India and help build its economy, while on the other, it was dragging its feet in implementing its own scheme.

Within two days, our letter was acknowledged and we were asked to share our details. In a couple of days, we got the keys to our office—a 300 sq. ft unit. Interestingly, we were the first to occupy the premises. But, more importantly, being frank and open with the government helped us start. I learnt that it’s important to demand one’s rights.

Just as I crossed one hurdle, another was on its way. We had prepared a proposal for the bank and applied for a loan. In mid-1991, all loan applications were placed on hold, so it took us nearly six months to get the amount sanctioned. I remember visiting the manager every day in the hope that it would help expedite my application. I wasn’t willing to bribe anyone, no matter how long I had to wait for the money.

Soon, however, things started looking up and seemed on track for the decade that followed, until recently, when the recession hit. Most of our start-up clients were on the verge of closure. I visited the CEO of each company to reassure them of our willingness to work with them. We re-negotiated our contracts and payment terms. Some managed to survive, while those who didn’t continued to be good friends and helped us find new customers.

I learnt that building relationships with clients is more important than selling one’s product. Relationships go a long way, products don’t. Be a human being first and a businessman later.