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Anyone see Amazonians? From Gurgaon,
Team Daksh (CEO Sanjeev Aggarwal in front) services Amazon's
customers |
An Indian BPO that services the world's largest
e-store. An Indian software products company taht sells online.
And an Indian coder who rules. |
Michael
Meeks is a 45-year-old programmer who lives in the city of Seward
in Alaska (don't reach for the map just yet, we're about to tell
you why geography is obsolete). Seward has 3,000 residents with
over 500 seasonal businesses, or so Meeks helpfully informs this
writer over e-mail. He works for the Seward administration and is
the ''systems manager'' for the city and a ''very busy programmer''.
Well, guess what, Meeks has found a way of getting around the issue
of overload on the job. He simply outsources programming jobs that
he is too pushed to handle, thanks to the internet. With a little
help from sites like Rent-A-Coder, a resource pool with a database
of coders across the world, Meeks farms out jobs to programmers
in India, France and Russia where he submits, ''all the best programmers
live''. Meeks has outsourced a total of 111 jobs online.
A few thousand miles away, John King, a programmer
in France, employed by a British company that specialises in systems
development for advertising agencies follows a similar modus operandi.
Spelling out the kind of paradigm shift he has seen in the course
of his 18-year programming career, thanks to online help, he launches
into the details of his recent outsourcing successes. King is currently
developing an intranet system and has three online experts working
with him. ''I reckon we've shaved about two-to-three months off
the development time and will end up delivering a much better product,''
he says.
For programmers like Meeks and King, help on
the job is always at hand, at a distance of about a few thousand
miles at a fraction of the cost they are used to paying for similar
jobs in their own markets. King has outsourced a total of 133 jobs
to coders in India, the former Soviet Union, South America, Singapore
and the US and UK. "Before I discovered online outsourcing,
I developed my shareware programs single-handedly, the profit margins
were just too small to consider employing someone full time to help
me and I just didn't have the office space. It was frustrating because
I had loads of ideas," says King.
Helping outsourcers like King bring their ideas
to fruition are thousands of online coders. For the record, the
coder with the highest rating online is Ludhiana-based Anuj Gakhar
who beats his peers from across the world hands down with a rating
of 9.86. According to Ian Ippolito, CEO of the Tampa, Florida based,
Rent A Coder, the average cost of an Indian coder has increased
from a tenth the cost of a US one to a seventh. "A large percentage
of the top 10 coders on the site are Indian and this reputation
for achieving results gives Indian coders the ability to charge
more for their services," says Ippolito.
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EXLSERVICE CALL CENTRE
Utility vehicles such as Tata Sumo and Toyota Qualis have become
symbols of India's BPO prowess, agents to call centres such
as Exl's in Noida |
Freedom from cost differential? Maybe, just
maybe, Indian programmers have begun to command their due online,
free from the shackles of location-based pricing. Ippolito adds
that Indians have also started to bag research projects online.
The top three countries for research projects are United States
(54 per cent of all such projects), United Kingdom (23 per cent)
and India (10 per cent).''
Creation Of A Virtual Firm
How often have you bought the lines "the
online economy is dead", or, "India can never create (software)
product companies"? Turning both statements on their heads
is the story of Cypherix, a Mumbai-based security product firm that
specialises in 448 bit encryption. The firm's product Cryptainer
sells exclusively on the net. With customers in over 40 countries,
Cypherix founder Abhay Mehta proudly claims that he is in a position
to fund all expansion plans through internal accruals and has never
taken external funding. Everyday four to five customers on an average
download the Cryptainer from countries as diverse as Brazil and
Estonia, for $90 a piece. Now Mehta has hit paydirt. A Japanese
company, TechnoBlest, has signed a licensing deal with Cypherix
to sell Cryptainer in a packaged form across shelves in Japan, in
association with a software distribution arm of Softbank. The product,
christened SafeFile will hit the Japanese market mid August. Mehta
has never seen any of his overseas business associates or customers.
"All interaction is online, I discourage phone conversations
as far as possible," says Mehta, ensconsed in a two-room mid
town Mumbai office with a panoramic view of the sea. The sound of
the breakers drowns out voices in his office but to Mehta, it's
inconsequential. When this writer left his office he was busy online
answering some query on his product that had just come in from a
Brazilian customer.
The Great BPO Wave
Rinu A is an Executive Assistant to a middle
management executive in a Fortune 500 company. She lives in Chennai
and heads off to work everyday at the Spencer Plaza Complex. Her
boss heads out to work around the same time. Only he's about 10,000
miles away in New York City. She answers his calls, takes messages,
completes all his documentation and does everything that an ea does.
And she manages to skirt chores like bringing him coffee. "We
have pools of assistants for mid-level management people overseas,"
says Joseph Sigelman, Co Founder, OfficeTiger, Rinu's employer.
Business Process Outsourcing companies complete
entire processes offshore. For instance, firms in the banking and
financial services space can offshore any process that does not
require face-to-face interaction or critical transactions. Standard
Chartered Bank's offshore outsourcing arm scope manages in real
time, the entire back office processing required to conclude a foreign
exchange transaction irrespective of wherever in the world the bank
strikes such deals. Financial services firm J.P. Morgan Chase plans
to offshore the entire backend, particularly research, required
for any investment banking deal to India. Some industry observers
like Noshir Kaka, Principal, McKinsey & Co see "a complete
recreation of the supply chain in services. Today when you open
up a pc, 90 per cent of its parts have come from 36 different countries,
that is the diversity I expect to see in the supply chains of the
future."
The offshore BPO phenomenon is attributable
to a few key factors: availability of stable cost-effective bandwidth,
secure communications and the ability to split activities across
the business. Industry veterans like Jerry Rao, Chairman & CEO,
MphasiS-BFL have an economic term for the phenomenon, "global
resourcing". Sigelman seconds that definition. "Our business
is to find the best talent anywhere in the world." Adds Rao,
''What we are now seeing actually redefines the term remote. The
only things that are remote now are things that can't be digitised.''
The trend has its own flipside: the movement
of millions of jobs offshore has sparked off protests in the United
States, UK, and Australia. Rao has his own way of looking at that.
"The job shift isn't a one way phenomenon. Consider e-Learning
where universities overseas are targeting students in this part
of the world, or areas like expert medical opinion where patients
in Asia solicit expert opinions from overseas doctors. It's clearly
a two way street."
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NANDAN NILEKANI
Managing Director, President & CEO, Infosys Technologies
At Infosys' IT services outsourcing
centre in Bangalore, some 50 engineers manage, in real time,
IT networks of their clients thousands of miles away |
The Global Delivery Model In IT Services
One of the more recent buildings to grace the
Infosys campus in Bangalore's Electronics City is the offshore it
Services outsourcing centre where about 50 software engineers manage,
in real time, it networks of their clients thousands of miles away.
It's a high security zone. Two large TV screens run international
news channels so the engineers can catch any development that is
likely to impact a client-location anywhere in the world. Adding
to this surreal atmosphere is the fact that each engineer glued
to his screen is actually working real time with someone 10,000
miles away and probably doesn't exchange more than a casual greeting
with the person next to him in the course of a working day.
The global delivery model is here. This could
be the trigger that will accelerate the creation of Indian multinationals.
Every major Indian software company is setting up delivery centres
across the Asia Pacific region in a bid to build redundancy as well
as tap cost effective local talent. In the meantime every multinational
company worth its salt is doing the same. Says, Dion Wiggins, Research
Director, Gartner: "US multinationals like Accenture, IBM,
Microsoft, Oracle are fully engaging local citizens, hiring local
employees in order to leverage the advantage that each location
has." All these companies are working to perfect the global
delivery model whose complexities are only just beginning to surface.
"In the future, we will be talking of a multicentric model;
it will not be just the English speaking market. You will have France,
Germany, Japan, possibly Korea and Taiwan, Scandinavia and a host
of other markets which will shape the global delivery system,"
says Partha Iyengar, VP (Research), Gartner.
While we may be inching towards a seamless
world, it will be a long time before it turns borderless. The very
move towards global resourcing has triggered five proposed anti
legislation bills in the US alone. Immigration regulations are altered
by the day in a bid to stem travel to countries where the threat
of mass scale job loss looms large. The Indian government plans
to take the dispute to the World Trade Organization. It's going
to be a long drawn battle before freedom from geography is actually
won.
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