By Sramana Mitra and guest author Sudhindra Chada
Our outsourcing series, begun last year by Tony Scott, continues this year with Sudhindra Chada. Tony’s objective was to examine, through interviews with executives of outsourcing companies in all industries, determine how the very idea of outsourcing has changed, understand the major trends in outsourcing and how they will shape business, and find out what people think about the idea of truly international companies and international workforces and how they help their workforces to develop the mindset and skills to compete on a global scale. Sudhi takes on Tony’s mission to bring to our readers useful insights from thought leaders.
About DataArt
DataArt is a custom software development firm that builds advanced solutions for the financial services, healthcare, hospitality, and other industries. Combining domain knowledge with offshore cost advantages and resource flexibility, DataArt develops applications that help clients optimize time-to-market and minimize software development risks in mission-critical systems. It has software engineers in New York, London, Russia, and Ukraine.
About Alexei Miller
Alexei Miller is a veteran of the IT industry and a recognized expert on IT outsourcing. Alexei joined DataArt as a project manager at the company’s inception in 1997, was elected to the board of directors in 2002 and relocated to New York headquarters the same year.
In 2004, he and Alexander Makeyenkov launched DataArt’s financial technology practice. In his current role as executive vice president, Alexei oversees company-wide customer relations and project management activities.
Prior to joining DataArt, Alexei was a project manager at Tercom, a software development company in St. Petersburg, Russia, where he led several development projects for the Italian telecommunications giant Italtel. He graduated cum laude from St. Petersburg State University with a master’s in mathematics. He is a frequent speaker at international industry events.
Sramana Mitra: Hi, Alexei. Welcome to our Outsourcing series. Would you give us a little background on what you do and what was the genesis DataArt? >>>
Neeraj Gupta is the CEO and co-founder of Systems In Motion, a nearshore outsourcing company in Ann Arbor, Michigan. Previously, Neeraj was a member of the executive team at Patni, a $700 million Indian IT services company, and founder/CEO of Cymbal, a services company focused on the telecom sector. He is an investor in and board member of various technology startups.
Sramana: What is the background story of the three founders of Systems In Motion? How did you meet?
Neeraj Gupta: The genesis of the organization came from all three founders, each of whom had experience working in global services. >>>
Eric Rongley founded Bleum, an outsourcing provider to American and European companies, in August 2001. Prior to founding Bleum, Eric established and ran the Navion (Shanghai) Software Development Company for Capital One Financial. Before his career led him to China, Eric was the general manager for IVR’s (International Voice Register) software development center in India. Eric currently serves as the chair of the International Association of Outsourcing Professionals (IAOP) Shanghai and is the former chair of the ethics and IT committee at the American Chamber of Commerce in Shanghai.
Sramana: Eric, tell me a bit about yourself. What is your background?
Eric Rongley: I was born in Pennsylvania. I graduated from Skidmore College in 1989 with a degree in economics. After graduating I went overseas and worked as a broker in London for a year. >>>
By guest author Tony Scott
This interview, the last in this first group in the series, is with Sitel, which describes itself as “redefining call center outsourcing.” The company offers a variety of services for acquisitions and sales, back office, collections, customer care, and technical support. I am talking with Sitel’s chief global marketing officer, Amit Shankardass, and vice president of marketing for the Americas, Andrew Kokes, who worked a number of years in the Philippines before coming to Sitel’s head office in Nashville, Tennessee. >>>
Joining the blog’s ongoing conversation about outsourcing, nearshoring, and IT services is Systems In Motion, a U.S.-based technology services company that was founded to create a competitive and complementary alternative to the trend of offshore outsourcing of IT work. >>>
By guest author Tony Scott
This interview, the ninth in Tony’s series, is with Dr. Shami Khorana, who is the president of HCL America, the subsidiary of HCL Technologies, a $3.1 billion business and IT services company with more than 72,000 employees worldwide.
Tony Scott: Shami, thanks for taking the time to talk to me about the future of outsourcing. Before we go into it, would you give me an overview of your past and how you became involved in outsourcing services? >>>
Global Sky is a Philippines-based call center that handles inbound, outbound, and back-office support functions. It aims to be a “branch office” for entrepreneurs, a place where they can outsource all non-core functions. >>>
By Sramana Mitra and Tony Scott
Next in line, after the Top 10 Tech Trends and the Top 10 Cloud Computing Trends, are the Top 10 Outsourcing Trends for the decade. >>>
By guest author Tony Scott
The outsourcing series makes its return with this ninth interview, in which I am talking with Naresh Lakhanpal, executive VP and president, Americas, and Hiro Notaney, VP of marketing, of Patni Computer Systems. Patni offers IT services, product engineering services, customer interaction services (CIS), business process outsourcing (BPO), and infrastructure management services. From its headquarters in Mumbai and its more than 33 offices and 22 delivery centers around the world, the company works with clients in industries ranging from insurance to manufacturing to media & entertainment. The interview begins with a discussion of Patni’s history and its plans to grow.
Tony: Hello, Hiro and Naresh. Let me give you some context for this interview. A couple of years ago Sramana Mitra wrote an article called “The Death of Indian Outsourcing.”
Naresh: I read it, yes.
Tony: It got a lot of knee-jerk reactions, but I think the point was well made that if you look at pure labor arbitrage . . .
Naresh: It doesn’t work.
Tony: Yes, exactly. The question is, how can the outsourcing industry continue if that is the only model? At a certain point you just run out of lower-cost labor. I wanted to find out how leaders in the industry have seen it change over the last few years, and how they see it evolving over the next few years. I pointed out to Sramana that for a number of companies I’ve worked with, they evolved into a solution-based approach, and those that did were able to continue to grow dramatically. >>>
“Anybody can go offshore and find somebody for four bucks an hour. But to find somebody who understands your culture and speaks your language, and knows where you’re coming from, that’s one step up,” says Josh Last, CEO and founder of GlobeTask, of his company’s approach. How important is the cultural factor? Tony Scott’s interviews with CEOs from around the world are just one of the blog’s attempts to gain a sense of how managers and workers view the role of national cultures in business. Opinions and models vary greatly, as we have seen in recent posts. On the one hand, onshoring, where U.S. companies outsource work not overseas but to U.S. workers in lower-cost rural locations, is on the rise. A recent Deal Radar profile featured Greytip, an Indian company committed to serving India-based clients. On the other hand, my interview with Gary Swart of oDesk shows that the virtual assistant market is becoming more popular, with an increasing number of opportunities for offshore workers. With GlobeTask, Last aims to avoid some of the disadvantages of cross-cultural teams yet allow clients to reap the benefits of outsourcing and off-shoring. >>>
By guest author Tony Scott
Introduction and Background to GlobalLogic
I recently had a conversation with Peter Harrison, the CEO of GlobalLogic. GlobalLogic provides research and development (R&D) services for software products through their team of over 3,000 software engineers based in the U.S., India, China, Ukraine, and Argentina. Their value proposition is to work as a collaborative partner with their clients on both context and core product engineering through a range of R&D services, including advisory, customer research, ideation, product engineering, QA/IVT, support and maintenance, and product line management. The company has ongoing partnerships with more than 150 clients in markets such as digital media, electronics, finance, healthcare, infrastructure, retail, and telecom. GlobalLogic’s investors include New Enterprise Associates, Sequoia Capital, Goldman Sachs, and Draper Atlantic/New Atlantic Ventures.
My discussion with Peter touched on how the technology and outsourcing industries are changing; his perspectives on perceived wage inflation in emerging economies; and his insights on the challenges of building a global organization with a consistent culture that encourages innovation. >>>
By guest author Kirk Laughlin
[Writer and video correspondent Kirk Laughlin is the newest contributor to my blog’s coverage of outsourcing, onshoring, and ways to create jobs and opportunities for people in the United States, India, and elsewhere. Kirk’s article, originally published on Nearshore Americas, explains why he thinks Senator Charles Schumer’s proposed immigration bill will fail to protect U.S. jobs, which is ostensibly its purpose. To get a sense of my thoughts on the many-sided debate over outsourcing and immigration, I encourage you to take a look at the recommended readings below. Tony Scott’s interviews, most recently with Sierra Atlantic’s Raju Reddy, add another dimension to the online discussion.] >>>
By guest author Tony Scott
From Intel to Outsourcing
Tony Scott: Before we talk about where you are today, can you tell me a little about how you came to found Sierra Atlantic?
Raju Reddy: Sure. I spent about ten years at Intel in a variety of engineering and marketing management roles before I started Sierra Atlantic. My background is engineering, and I later moved into marketing. I helped to start marketing programs for the first generation of Pentium processors. >>>
By guest author Tony Scott
I recently interviewed Vivek Chopra, one of the early employees of Wipro, former head of IBM’s Daksh services business in India, and now president of CSC’s India operations. Vivek has a long and deep history in the IT industry in India and in the global outsourcing and off-shoring arena. His insights into how this market has evolved and is still evolving are fascinating. >>>
By guest author Tony Scott
Introduction and History
So, after reading a few of my previous interviews, do you still think that “outsourcing” is just about labor arbitrage of low-level tasks?
I recently interviewed David Wert, global head of managed services at Tata Communications, and Niraj Sridhar, who leads Tata Communications Transformation Services (TCTS). They provide outsourced network and communications infrastructure services to global telecommunications companies and global enterprises such as Microsoft, Google, and Yahoo! – definitely not “low-level” activities to “basic industries.” The question is: Why do sophisticated, well-established companies at the cutting edge of technology choose to use companies like Tata Communications to handle very complex technological tasks? >>>