A discussion is provided of why and how early stage startups are doing more work in India. Companies highlighted include InSilica, Open Silicon, Ample Communications, Atrenta, Interra, and Reverbed Technology. Those companies are all doing some described work in India, but a San Jose Mercury News reports that Ishoni Networks, which had a chip for voice and data services over the Internet in development, lost human capital and IP when its India-based engineers left for a competitor. The Santa Clara-based company filed for bankruptcy in December. No Ishoni executives or VC partners are talking to the press. If handled incorrectly says an expert, offshoring of research and development (R&D) can have extensive economic advantages, but if handled incorrectly, it can kill startups. Ash Lilani, an executive at Silicon Valley Bank, believes that 10% of his cuts, or about 1,000 primarily venture-capital-backed companies, do some R&D in India, but that number is expected to rise to 25% in a few years. Among topics covered are the long-term offshore R&D strategies of large companies; the requirement that startups install a suitable design methodology in India; Open Silicon's design methodology, which is customized for hiring problems in India and other cultural differences in India; Ample's emphasis on on-site management and maintenance of U.S. engineers; morale, which takes listening to and talking to staff. Ample says it has no immediate plans to move jobs from California to Bangalore, India.