Indian SaaS hiring culture faces harsh critique
The Indian Software as a Service (SaaS) industry has been growing rapidly over the past few years, with many startups and established companies alike vying for talent to drive innovation and growth. However, a recent critique by an AI startup founder has shed light on a disturbing trend in Indian SaaS hiring culture, which is not only damaging to the industry’s reputation but also stifling innovation and progress.
On August 9, 2025, Sudhir P., the founder of an AI startup, took to social media to express his frustration with the toxic hiring practices prevalent in the Indian SaaS sector. According to him, exits are often viewed as betrayals, and biased reference checks are used to block talented individuals from joining the industry. This culture, he argued, is not only unfair but also detrimental to the industry’s ability to innovate and grow.
Sudhir’s critique echoes earlier concerns raised by Amit Gupta, the founder of Factoryal, a leading recruitment platform. Gupta had previously spoken out about the need for skills-based hiring in the Indian SaaS industry, rather than ego-driven choices. In an interview with a leading publication, Gupta emphasized the importance of looking beyond a candidate’s CV and focusing on their skills, experience, and fit for the role.
The problem with biased reference checks
At the heart of the issue is the practice of biased reference checks, which are often used to block talented individuals from joining the industry. This practice is not only unfair but also inefficient, as it prevents companies from accessing the best talent available. According to Sudhir, many companies in the Indian SaaS sector rely heavily on reference checks, which are often subjective and biased. This means that candidates who are deemed “outsiders” by existing employees or network contacts may be unfairly excluded from the hiring process.
The consequences of this practice are far-reaching. Not only does it prevent companies from accessing the best talent available, but it also creates a culture of conformity and groupthink. When companies prioritize loyalty and familiarity over competence and skills, they risk stifling innovation and progress. As Sudhir pointed out, this culture is not only damaging to the industry but also to the individuals who are unfairly excluded from the hiring process.
The impact on innovation and talent
The consequences of the Indian SaaS hiring culture are not just limited to the companies involved. The broader impact on innovation and talent is significant. When companies prioritize conformity over competence, they risk stifling innovation and progress. This is because innovation often requires a diverse range of perspectives and skills, which are not always present within a single company or network.
Moreover, the biased reference checks and toxic hiring practices prevalent in the Indian SaaS sector also discourage talented individuals from joining the industry. When candidates are unfairly excluded from the hiring process due to biased reference checks, they are more likely to turn to other industries or sectors that offer a more inclusive and merit-based hiring culture.
The way forward
So, what can be done to address these issues and create a more inclusive and merit-based hiring culture in the Indian SaaS sector? According to Sudhir, the first step is to move away from biased reference checks and focus on skills-based hiring. This requires companies to look beyond a candidate’s CV and focus on their skills, experience, and fit for the role.
In addition to skills-based hiring, companies in the Indian SaaS sector must also prioritize diversity and inclusion. This requires creating a culture that values and celebrates differences, rather than conformity. By doing so, companies can tap into a wider range of perspectives and skills, which are essential for driving innovation and growth.
Conclusion
The Indian SaaS hiring culture faces harsh critique, and for good reason. The biased reference checks and toxic hiring practices prevalent in the industry are not only unfair but also detrimental to innovation and progress. It is time for companies in the Indian SaaS sector to rethink their hiring strategies and prioritize skills-based hiring, diversity, and inclusion. By doing so, they can create a more inclusive and merit-based hiring culture that benefits both the industry and the individuals who work within it.
