Sramana: Are you finding future workers while they are still students at local universities and colleges? Neeraj Gupta: We are doing lateral hires in the market; we hire directly from the University of Michigan’s bachelors and graduate programs, from Eastern Michigan University’s bachelors and associate programs; and we are also getting candidates from the masters CS
Sramana: Latin America, Eastern Europe, and the nearshore U.S. are all options that are coming up a lot now. What is the risk to India? Neeraj Gupta: India is the only place where software development works at scale. There has been a lot of investment in India, and I think it is here to stay.
Sramana: When the three of you came together to found Systems In Motion, you had a set of analysis about the dysfunctions and gaps in the outsourcing industry. I have a piece that addresses this titled The Coming Death Of Indian Outsourcing. Neeraj Gupta: That was a great piece that you wrote, and we echo
Sramana: Where in the Midwest did you establish operations, and how did you know Colin Chapman? Neeraj Gupta: When we decided to explore the low-cost domestic sourcing model, we spent three months looking at different locations in the U.S. We talked with various state governments. In 2009 there was a lot of debate about job
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
Sramana: In the manufacturing supply chain, you have the tier 1, tier 2, and tier 3 suppliers. In many cases, the tier 1 suppliers are system integrators and they source from the tier 2 and tier 3 suppliers. Do you foresee that type of model developing in the software and IT outsourcing industry? In that
Sramana: Essentially your company has gained traction by focusing on mission-critical application development for top global corporations, is that correct? Eric Rongley: Exactly. We would argue that a customer should focus on the total cost of the outsourcing versus price per hour. The reason is that we bring a lot of value to the table.
Sramana: How significant is the language issue? Eric Rongley: Somebody with good English in China is someone who is higher up in the talent pool than someone who speaks good English in India. It is an issue that is definitely there. Indian companies have to institutionalize, in a manner, to deal with high attrition rates.