As surveillance tech blows up, startups face a unique paradox
Dec 15, 2024
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Explore the humorous challenges of implementing facial recognition technology in India's temples. Discover how startups navigate the chaotic landscape of public versus private contracts amidst the booming surveillance tech scene. Learn about the hurdles these businesses face, from funding disparities to logistical challenges, as they pivot towards more lucrative private clients. This intriguing discussion reveals the balancing act required for startups to thrive in a rapidly evolving industry.
Surveillance startups in India face challenges securing government contracts due to lengthy timelines and unpredictable execution, impacting their growth potential.
Private sector clients offer clearer project visions and greater investment, allowing startups to achieve better resource allocation and sustainable profitability.
Deep dives
Challenges of Government Surveillance Projects
Government surveillance projects often face significant challenges, particularly regarding execution and costs. Many startups report that these projects are cumbersome, with lengthy timelines and inadequate compensation, which leads to frequent stalling and minimal progress. For instance, facial recognition technology initiatives launched by the Indian government frequently become mere pilot projects due to the lack of clarity in their objectives and the competitive bidding process that favors the lowest-cost solutions. This results in startups encountering difficulties in delivering effective services, as they are pressured to cut corners while attempting to maintain operational standards.
Advantages of Private Sector Surveillance Contracts
Private sector clients tend to offer advantages that government contracts often lack, including a clearer vision for projects and a willingness to invest in quality. Surveillance startups find that private sector projects allow for better resource allocation and higher quality equipment, as private companies are more inclined to pay a premium for sophisticated technology. Furthermore, unlike government contracts, which can be overwhelming and filled with red tape, private partnerships require startups to manage all aspects independently, resulting in direct engagement with clients. Although private contracts tend to be smaller in scope compared to government tenders, they often provide more realistic opportunities for sustainable growth and profitability.
India can't get enough of surveillance technology.
Indian startups, meanwhile, are making the most of this trend by securing high visibility government contracts. But while these can boost a startup's profile, government projects are unpredictable and often difficult for smaller startups to win.
As a result, there is a shift underway — private clients are becoming increasingly crucial for profitability.
This divide between public and private contracts is forcing India’s surveillance startups to do a fair bit of monkey balancing. How are they pulling it off?
Tune in.
P.S The Ken’s podcast team is hiring! Here’s what we’re looking for.
Daybreak is produced from the newsroom of The Ken, India’s first subscriber-only business news platform. Subscribe for more exclusive, deeply-reported, and analytical business stories.Listen to the latest episode of Two by Two here
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