Why did Zoho start a school for ‘contextual knowledge’? And whom is it for?

Sridhar Vembu of Zoho does not like doing things the conventional way. He does things differently. Not because he wants to be different, but because is willing to experiment. The fact that he does not have investors breathing down his neck helps because it allows him to experiment.

And one of the most dramatic experiments that he and his company carried out was in the area of people.

You see, when you set up a software company, what do you need? Programmers, isn’t it? And which country do you get your programmers from? India, of course. Silly question. So while Zoho (at that time AdventNet) had clients all over the world and Sridhar was based in Silicon Valley, their development centre was in Chennai. Which is exactly what you would expect.

But I can guarantee you would not have expected the next step – Sridhar had always believed in taking on people with potential and the will to succeed. Too bad if they didn't have an appropriate degree, such as a BTech or an MCA. He believed that many such people – without degrees – could actually perform better than those with a degree, provided they received the appropriate practical training and mentorship. Fortunately, his co-founders as well as his senior management agreed with him. And that's when the company did something unthinkable. Something no other software company had done. They decided to take on bright youngsters with potential, straight out of Class 12.

That’s right. No degree. And that's when, early on in their journey, in 2004, they launched Zoho University (now called Zoho Schools), where these youngsters would be trained.

Let’s hear what Sridhar has to say on this subject: Formal education only takes you so far, but most of the contextual knowledge comes from actually doing something. The Internet is a force multiplier. Now, if one wants to learn something from scratch, it takes perseverance, but the tools and the lessons are available. almost for free. It’s very powerful. It is changing the way education works, companies and organisations work. That’s why Zoho University is about this contextual knowledge. We impart that kind of thinking to the trainees so that they can themselves go on to acquire what they need.

So now that you know the thinking behind the concept of Zoho Schools, let's dive into some more details. First of all, it runs a two-year programme. They take in students from all kinds of backgrounds. And this is the key: Many of these students come from low-income families – often with a rural background.

Why?

Well, let’s hear out Rajendran Dandapani, director of technology at Zoho and the president of Zoho Schools: We wanted young people with fire in their bellies. Those who had a strong desire to do something in life, but had not been able to proceed with their education because of their family backgrounds. These were the ones that were likely to perform well. And that’s why we have always focused on students from low-income households. For these young people, becoming an engineer was a distant dream. But at Zoho Schools, we have made this possible – not through a degree, but through actual hands-on learning and mentorship. By the way, by the age of twenty-one, these students are earning and already have experience, while others of their age are still studying.

Zoho Schools is located within the Chennai campus of the company. To enable the youngsters to work with the experienced software professionals there, and thereby learn from them. So most of their learning is on the job rather than theoretical, Yes, they do have some formal classes, but most of their learning comes from actually working on the company’s projects.

Finally, how much do they charge these young people?

Nothing.

That’s right. They don't charge them at all. Instead, they pay them a stipend of Rs 10,000 per month, as long as they are part of the programme. After that, most of them are absorbed into Zoho. So it is a combination of formal classes along with an internship, where these students work along with experienced software professionals and pick up the required skills in the process. The other great thing is that these students are productive almost from day one.

A brilliant concept, isn’t it?

Excerpted with permission from The Earnicorns: Stories of Rare Profitable Unicorns: Naukri.com, Zerodha, Dream11, Zoho, Dhruv Nath, Penguin India.