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OVERSEAS BUSINESS: Boldly Going Where Few, Have Dared Before
 
As solution provide look beyond India for business, they need to be geared to deal with some problems that peers faced when they implemented projects abroad.
 
Amishi Shah
 
Monday, March 21, 2005

 

A growing number of solution providers are looking beyond the country to deploy projects. But are they aware of some common pitfalls they are likely to face while dealing with overseas customers? DQ Channels speaks to a few partners and asks them to list some of the problems they had faced when they implemented projects abroad.

An old adage goes that 'When opportunity knocks at your door, grab it'. And if the opportunity has to do with going abroad, then grab it with both hands! Solution providers in the last couple of years have stepped out of India to provide their services in other countries. But it is important to bear in mind that working in a different country requires a complete rehaul of one's thinking and even approach to business, at times.

One reason solution providers venture outside the country is because the market here is saturated and also because better opportunities are available there. "In other countries, the opportunities are bigger and better in terms of quality also," said Sanjiv Bhavnani, CEO and MD of Visesh Infotecnics. The company was the winner of the Best Deployment of DQ Channels Excellence Awards for the project that it deployed for the Thai government.

"Setting foot in countries like USA, Australia or UK gives a solution provider a breakthrough by bringing in new business accounts. It positions not just the company, but even India on a global level," said Atul Hemani, Director of Omnitech Infosolutions.

Getting Noticed
Achieving success does not come with ease, especially when you are in a foreign land. Making a mark for your own company depends on the country you are in. "Countries like Yemen and Sri Lanka do not have many players in the solution providing field. Thus, it is easier to get a bigger market share there than in the US," pointed out Nitin Shah of Allied Digital Services (ADS).

Some Likely Hurdles 

• Creating recall among local customers takes time 
• Chances of losing employees to local companies
• Language and diet constraints 
• Identifying the correct customer vertical and region
• Understanding local culture and opportunities

What Other Partners Have Learnt 

• There is enough local competition eyeing the same business you target
• Be courteous and considerate of the culture and habits of people in that country 
• Get the deal signed on paper to avoid misunderstanding in the future
• Getting payments takes time and patience

On the other hand, establishing business in developed nations of America or Europe poses a tougher task. These countries already have companies who are well entrenched in solution providing and creating a niche for one's own company is difficult. If an Indian partner is able to bag a couple of accounts, servicing it over longer periods of time becomes an issue.

This is why ADS plans to include servicing of projects as part of the entire solution deliverables. In short it will maintain and manage the infrastructure even after the solution is deployed. This will give the clients the reassurance that ADS has given it better value-adds and a comprehensive quality IT setup.

One apprehension that overseas customers have when it comes to awarding accounts to Indian partners is ensuring that they get the best-of-breed solution. Therefore it is imperative to not compromise on this aspect, as this will only pave the way for getting more business from that customer and the region as well. "This is why we believe that it is important to conceptualize and deliver a solution that would be acceptable to customers, rather than what we think would be right for them," noted Sushant Panda, Director, Lauren Information Services.

Inadequate Technical Knowledge
There are two genres of overseas customers. The first belong to developed nations, where they have a well-established IT infrastructure. The other set of clients operate in developing countries where the technological awareness is quite low.

Therefore, Indians who go to the latter countries should have good knowledge of all verticals and domains. "Their consultation and trusted advice would be sought after by the locals of that country in verticals like banking or health care. Thus, rather than having mere knowledge of specific solutions to be implemented, it is essential to be aware of the scene in various verticals of the country one is setting foot in," said Nitin.

Besides having good technical qualifications, the solution provider should also take the culture of the client's country into account, before embarking on a project. This could involve the style of working, way of living or even decision-making processes. Sanjiv elucidated that inhabitants of any country are sensitive about its culture, and the utmost care should be taken to avoid offending them.

Losing Trained Employees
Most solution providers who have gone abroad prefer to take some of their employees from India, rather than appoint local manpower from there. "We take project managers and key technical personnel from India, while local engineers are used, as they are conversant with the local language and habits," said Sanjiv.

ADS, too, follows this practice. In developing nations, Nitin does not mind training the local personnel there. But when he goes to well-developed countries, he takes an Indian crew with him, for two reasons. The first is that this arrangement is more economical. The second is that it is easier to deal with well-known employees than with a new set of people, thereby saving time.

At the same time, losing employees who have undergone special training for overseas projects is a cause of concern. But most solution providers, like Sudhir Sarma of Network Solutions, feel that rather than fear this factor, its better to treat employees well, so that they eventually will want to come back to India and work with the same company. He feels that brain-drain is a thing of the past. "Given the state-of-the-art technologies in India, skilled personnel have all reasons to return back to India," commented he.

Dietary and Language Barriers
It is important for a solution provider to brief his Indian team members about the local culture, diet, customs, language, opportunity and competition, before they leave for foreign shores. This will ensure that they are comfortable in the new place and can adjust to it accordingly.

Trivial things like diet, for instance, can often result in acrimony. Sanjiv recalls how his people were having a tough time with the unusual Oriental cuisine in Thailand where the company was implementing a solution for the revenue Department of the Royal Thai Government. Finally, he had to appoint an Indian cook.

But Nitin does not pay a lot of importance to these details. As he puts it, "When you are determined to achieve something, and you are there with a set goal in mind, then these factors appear to be minor."

Amishi Shah

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