As the world turns into a global village, more and more people are looking at setting up their businesses abroad. The IT industry has already taken a giant leap in this direction and every other company, irrespective of its size, is keen on exploiting global opportunities. The IT solution providers (SP) are not far behind in the race and with their businesses growing from strength to strength, many have already started eyeing opportunities abroad. While the larger SPs have already forayed into countries like the US, Canada, Australia, China and the European countries, the smaller ones are yet to take this bold step forward.

The global venture
The first step towards setting up any enterprise abroad is to realize one's own potential and core area of strength. This is followed by strong market research and knowledge about the target customer. Hence, visiting the market you wish to explore and consulting local legal advisors in garnering relevant details is key to ensuring security and safety of business. On the basis of the above strategy, one can go ahead with the concerned market.

Bimal Raj, CEO of Mumbai-based Allied Digital Services reiterated that the safest practice is to seek professional advice both from legal experts and HR consultants. Besides, seeking advice from a good accounting firm is yet another option that helps in understanding the monetary issues.

“In the first place one needs to study the market thoroughly and then take a decision. It is recommended that an SP go with a couple of strong offerings and see what he can offer best,” he added.

A leading system and network integration company, Allied Digital Services has designed, implemented and managed network infrastructure for many Indian and global companies. It has its presence in Sri Lanka through a JV and has partnered with a Singapore-based company for security solutions. Besides, Allied Digital Services has offices in West Asia and Thailand and has forayed into the US market as well.

Delhi-based Team Computers and Netlink Business Systems, and Mumbai-based ALL E Technologies are names of a few other SPs who have dared to venture abroad.

Legal matters
According to KV Jagannath, CEO of Hyderabad-based Choice Solutions, “Before entering into partnerships or extending goods on credit, always establish clarity on payments and other terms and conditions. There have been numerous occasions when the party has delayed payments only because the payment terms and conditions were not laid down right at the beginning.”

Countries such as Australia have quotas and a points system. What business you do will depend on whether they want you to do it or not. On the other hand, in the European Union you're free to work anywhere you like. Thus, each country has different laws and understanding the terms of employment law, finance and accounting law, pension law, import and export law, bankruptcy law etc is of utmost importance. Therefore, it is always advisable to take an experts advice on any of the above matters.

Bimal Raj CEO, Allied Digital Services, Mumbai	Sanjiv Bhavnani MD and CEO, Visesh Infotecnics, New Delhi
Unless one is financially stable they should not think of venturing into global markets. It isn't easy to chase late payments when you're thousands of miles away	Don't venture into a market with wrong services, and always look at hiring experienced people who are aware of the market and understand its dynamics

Jagannath further mentioned that one should always plan investments and keep the taxation aspect in mind. A country that has low tax regimes will offer maximum chances of growth. One should also have enough working capital to fund the recurring expenses. Beside debts and loans should not be taken to fund short-term needs. “There is no point earning 20 percent margin in a country where one ends up giving 30 percent tax for every project/transaction completed,” he elucidated.

Choice Solutions has already forayed into the USA and is working with government agencies, Fortune 500 companies and small to medium enterprises.

HR practices
In order to achieve the desired results, it is mandatory that one appoint skilled employees. Clarity on HR policies is key to setting up successful enterprises abroad. Hiring HR consultants abroad helps in understanding the various implications of the HR laws in the country. In addition neither SPs nor their employees should share crucial information and data with any outsider.

Sharing his experiences, Raj elaborated that it is always advisable that a local sales and marketing staff is hired as a part of the marketing strategy. This will ensure that the customers are well taken care of and will help in further establishing credibility and comfort level with the client.

“It is advisable to hire employees on a contract basis with all the terms and conditions mentioned very clearly right at the beginning. With the consultants advice one can clarify several issues related to appointment letter, nature of work, payments and other relevant issues,” Raj said.

Jagannath agreed saying that in the UK and the US it is always advisable to keep people on contract basis. Hiring people through a consultancy is also an option. Taking manpower on contract basis ensures that the employee does not become a long-term liability and does not leave the company in a lurch during the peak time. Seeking a consults advice ensures that the right candidates are hired for the completion of the desired project.

Be flexible
Another issue that is of extreme importance is that of scalability. A client may all of a sudden ask you to deliver more than had been initially decided upon and hence it is extremely crucial for SPs to be flexible and ready to take up challenges as and when they pop up.

Citing one of his experiences Jagannath mentioned that his team was once working on a project for a US-based pharmaceutical company and was prepared to deliver the services for 100 seats only. However, all of a sudden the company asked to offer the same service for 500 seats.

“We could not scale up and meet their demands then as we were not prepared to deliver more at that point of time. We lost the deal but we learnt that one needs to be flexible enough to meet client expectations,” he added.

Page(s)   1  2