Profits and Pitfalls of Working with India

The experiences of the technology companies in theeveryone involved and setting-up formal processes for
last few years who failed to navigate the rapidhandling sensitive information are keys to eliminate
changes brought about in their marketplace byrisks surrounding privacy. Learn to politely say 'No' few
disruptive flattening forces may be a warning to all thetimes a day if asked for information that you are not
businesses, institutions that are now facing thesecomfortable divulging.Overhead
inevitable, even predictable, changes but lack theGeographically India is farthest from us, twelve time
leadership, flexibility, and imagination to adapt - notzones away. When we are looking forward to a good
because they are not smart or aware, but becausestart on any day they are tired of that day and simply
the speed of change is simply overwhelming them.Theretiring and vice-versa. When you find out something
Internet now makes this whole world like oneimportant during middle of the day here, they are
marketplace. This infrastructure is not only going toprobably dreaming about your finding (its middle of the
facilitate sourcing of work to the best price, bestnight there) or having nightmares. You may have to
quality, from the best place, it is also going to enable await to share it with the team in India.If they have a
great amount of sharing of practices and knowledge,question on your specification, you would prefer they
and it's going to be 'I can learn from you and you cansend you an email instead of calling you when you are
learn from me' like never before. It's very good for thefast asleep. We all loose some time and productivity
world. And India has emerged as back office hub fordue to this overhead.Face-to-face meetings are
all kinds of services for the world.Two thirds ofsometimes required to build team dynamics, but a
Fortune 500 companies have setup offices in India fordaunting 20-hour flight followed by 5-day jetlag is
this reason. Most think of its 300 million-strongdefinitely overhead. Best is to entrust them with
well-educated and ready-to-spend-more middleclassresponsibility and never micromanage.Honesty
as an opportunity of our times. It's a market to capture,When you say a simple word 'couple' you mean
and a talent pool to tap into. Big multinationals areexactly two, in India it's open to interpretations. When
moving forward in that direction and it gives them asomeone says a couple of our engineers are working
competitive edge. A competitive edge you wish youon your problem it means some, it could be 2 or 3 or
had.Well, it's finally time to compete with the globalmore. When you hire someone on hourly basis, it is
leaders. Time has come for every business to benefithard to validate the number of hours or number of
from a new trend in global economy. Partnering withconsultants they bill you for. A company can claim that
India. The global economy is going to drive moreresearchers on their team have PhD degrees, you will
integration (of India into it) and integration is going tonever know where from and how many really know
drive the global economy.PROFITS:about their company's claim. Some small businesses in
Let's begin with why it makes sense to work withIndia will have their employees fabricate qualifications,
India:Qualitynumbers or experience when asked by client. An art
It used to be that work would go wherever cheapestmastered by Enron.It is highly recommended to select
labor is available. That is not the case with India. Sure,a proven partner and check references from past
it's cheaper than here but not the cheapest. More andclients. Getting agreements reviewed by a local
more work is going to India because it provides goodattorney, and alerting concerned parties on
quality services at competitive rates. Thanks to thenon-compliance as soon as they occur reduce risk of
dot-com-bust, more and more companies in India arefailure.Quality
learning that quality brings return business. And thereIf the company you are working with oversold you on
are plenty of clients who would outsource everythe benefits or is unable to retain the key employees
aspect of their business that can be done remotely.and cannot deliver, what you get is low quality work
Vast English speaking population sees outsourced jobsand a place back to square one. Poor quality of
as gateway to better life. They come to work everyproducts and services delivered is cited the main
day (and night to synchronize with us here) with suchreasons why clients in the USA change the vendor or
enthusiasm not seen for that type of work andsupplier in India often.Just to avoid the last minute
reward anywhere else.The drive for quality also bringssurprises, you should start small. First get a small
Indians to US companies for products and services forfeature done in a few weeks and verify the quality of
their needs. If Dell, GM, Microsoft, and Citibank havework done before outsourcing
benefited over past several years, I bet you will findeverything.Accountability
clients keenly interested in your expertise now.QuickIf responsibility can be dodged, it will be. Well, in most
Proof of Conceptcases. When arriving on time for a meeting is not
So, you are excited to be working on innovative newconsidered very important, deadlines will come and go.
technology but have a shoestring budget to create aMost Indian consulting company's executives have had
prototype. Welcome to outsourcing to India. Gettingexperience working in the USA, but working bee does
prototype done in India gives you a chance to evaluatenot. Dog ate my homework still rules for young fresher
the Indian partner without loosing your shirt. If you getout of college.You can specify the release date or you
next round of funding, you already know whether tocan specify what features are to be in a release. It is
continue working with same company or look for ahard to do both and get a reliable commitment.
better partner.Routine & Maintenance WorkRelease dates are most reliable if people who will
To maintain legacy applications you have tried hiringwork on them also estimate them.CONCLUSION:
consultants here and the one who lasted longest wasIndia is a threat, India is a customer, and India is an
with you for 6 months. It's not worth the effortopportunity. You have to internalize India to succeed.
anymore. Most Indian companies would compete forYou cannot ignore it. Instead of competing with India as
your routine maintenance work for long-term and do itan enemy you break down your business and think
more efficiently and effectively for far less money.about which part of the business you would like to do
And remember since it uplifts their standards of living,in India, which part you would like to sell to India, and
they do it passionately.Productivitywhich part you would like to buy from India.Sending
If you find the right company to outsource your worksoftware, accounting, billing and any such work AND
to, you can focus your own resources on doing moreselling US products and services to India, is now
of what you do better and stay lean. Your Indianpossible for all of us. Whether you should do it,
partner can surprise you by doing more than just whatdepends on your objective, growth, and need.
you originally thought was possible to do remotely.Distance, communications, lack of information, and
Most of the time outsourcing increases your ownquality etc. should not be roadblocks anymore. You
productivity, increases sales, and increases customershould choose your Indian partner diligently and audit
satisfaction and loyalty. It builds value.The other side ofthem regularly.About 60 percent of IT projects
productivity coin is ramping up demand for leadershipoutsourced to offshore companies fail to meet the
skills building, mentoring, and management consultingdeadline and budget in comparison to moderate 23
within Indian companies. Concepts nurtured andpercent of projects outsourced to local US
mastered by the US companies command high pricecompanies.Following are some pointers to improve
from their counterparts.Quick ROI & Cost Savingsyour chances of success in working with India:·
If it weren't for saving big money for investors andDiscover the best way to specify your services,
stakeholders, businesses would still be dealing withsoftware or business process
labor associations on pay hikes for things that can be· Keep in touch with your outsourcing team
done at a fraction of the cost outside. The costwithout micromanaging
benefits of sending work to India can range from 20%· Communicate directly with development team
to astonishing 70% sometimes. In all cases it's theby email, instant messaging, and telephone.
quickest route to ROI and that should convince your· Treat the outsourced Indian team as part of
CFO to start asking why aren't we doing it.PITFALLS:your own team
Are you thinking everyone else is doing it and I should· Require local leadership and entrust them with
too? Sure. Like each new wave, just take some timeauthority and responsibilityIf you cannot do it yourself,
to see if it's really for you. Study all your options, douse services of Pacview, Inc. with expertise and
market research for services you plan to offer.presence in both US and India to:· Find the right
Evaluate your Indian partner, and measureoutsourcing team that best fits your situation,
performance if you plan to avail their services. Here's· Choose from more than a dozen proven
is list of things that can; and do; go wrong:Privacyexpert teams in India categorized by skills,
There is very little privacy in life of an average Indian.· Cut your team search time by 90% - from
It is very common for people to ask each other salarymonths to just days,
they make and everything else that is not asked out· Cut your software development or BPO costs
of courtesy in the USA. If people do not worry tooby up to 70%,
much giving such personal information, Corporations· Increase your customer base by 100% - from
can hardly ensure privacy of your consumer dataBay Area to Bangalore.
because companies are run by people.Educating