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Outsourcing:
Dual advantage for NRI techies
[If you are interested in offshoring, you may also be interested
in Mohan's new book on
Offshoring Management]
It
is time for Indian techies in the US to take advantage of the
outsourcing hype and replan their career goals. They do not have
paperwork hassles and bottlenecks, allowing them to live and work in
both countries, writes Mohan Babu
A few
weeks ago, I wrote about outsourcing of IT systems and projects from
the US, and since then I have received a number of mails from
readers. I have also noticed an increasing deluge of articles in the
mainstream media of the US talking about the pros and cons of
outsourcing. There is little doubt that the outsourcing model is
taking off, but how much and how fast is the million-dollar
question.
Interestingly, among the “Top 10 Predictions” from Gartner for 2002,
outsourcing ranks high. The research firm says, “Outsourcing and
trusted suppliers will take more control as capital spending reduces
in favour of operating budgets. This trend has already taken off in
corporate America where cost cutting has become the new mantra.”
Gartner goes on to add, “Softness in the consulting and systems
integration markets will be taken up by growth in outsourcing and
management services, which will contribute to the growth in the
overall professional IT services market. Outsourcing and management
services will increase from a 53 percent share of the worldwide
professional services market in 2000 to 57 percent in 2004,
primarily at the expense of systems integration services.”
There
is little doubt that outsourcing is a highly viable business tool at
the disposal of corporate executives. It is also interesting to see
Indian companies graduating from being providers of low-end software
coders to Business Process Outsourcing vendors, moving up the value
chain. Skillful and innovative marketing is helping propel Indian
companies towards bigger projects, especially as the tech spending
in the US continues to be sluggish. The slowdown is perhaps a
blessing in disguise for Indian software houses that are now able to
afford fine talent. Indian companies are also finding that they can
get an audience with executives in the US who are looking towards
outsourcing as a viable cost-saving measure.
The
trend towards outsourcing does not seem to be restricted to the
high-end players alone. Smaller and mid-sized companies, even
individuals seem to be jumping the outsourcing bandwagon. A recent
Wall Street Journal article titled “Hearing I work cheap from across
the globe”, goes on to talk about services like “2 Rent a coder”
services that provide individuals with connectivity in the global
marketplace. What may seem like a few dollars in the US translates
to hundreds of rupees (or Roubles or Chinese Yuan) in another corner
of the globe. Web commerce makes for a truly global marketplace this
in turn makes micro-level outsourcing a very viable and attractive
option for even individuals who want to jump the bandwagon.
Perhaps one of the most important factors in favour of outsourcing
(to India) is the presence of a large number of NRIs who can be
tapped in this endeavour. A number of Indians who came to the US
during the boom time of the nineties are now green-card holders and
permanent residents in the US. They are comfortable working in both
American and cross-cultural teams. Employers, especially to the
software executives who run Indian companies, are finding that they
have ready access to thousands of capable and highly skilled
professionals. Added to that, there are hundreds, if not thousands
of excellent techies of Indian origin with American green cards who
may be planning to make use of the current slowdown to revisit their
career goals and options. Executives with some foresight and the
ability to look at the forest from the trees will immediately sense
an excellent opportunity, since this situation (downturn in economy)
in not going to last long. Even outsourced projects need
representation at client sites, people who understand both the
offshore and onsite development. There are a number of compelling
reasons for Indian companies to hire NRIs technologists:
-
Indian technologists, who have lived and worked in the US,
understand the local culture and can interface with natives in
America.
-
Technically savvy. They understand the current technologies and
trends, and tend to have their ears in the ground.
-
Companies employing NRIs do not have to worry about logistical
issues. For example, every new person sent to the US will need
guidance and help with non-work related documentation and
logistics. Having had a base in the US, NRIs will not need any
such assistance, be it driving down to a client’s location or
booking a hotel.
-
They generally have a good understanding of business practices in
the US.
-
NRI technologists do not have paperwork hassles and bottlenecks.
Many have green cards that allow them to live and work in India
and US.
-
Very few travel restrictions. They can pack up and fly-down to a
client’s location at a moment’s notice.
-
NRI managers can provide a big boost to companies hoping to move
up the value chain.
Given
the global nature of Indian software industry, most large Indian
software houses have projects around the world and can market
professionals in other parts of the world too. If they (the Indian
companies) can see an opportunity in this economic climate, they
will come ahead when things eventually start looking up. They will
not only have a pool of talented workers but will also win the
loyalty of the workforce that has seen worst times. There is an army
of experienced professionals waiting for the right break, at the
right price.
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