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.
By Sramana Mitra and guest author Aditya Modi Sramana Mitra: But Apple is an extreme case, right? They are very much about vertical integration and very much about an internally controlled kind of philosophy. Joe Lawler: They are an extreme case, but they are certainly not alone; SanDisk has done the same thing over the past
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.
By Sramana Mitra and guest author Aditya Modi Sramana Mitra: The optimization you are talking about, the technology behind that kind of optimization, is that off-the-shelf technology or is it something you have custom built for your business?
Sramana: What was the situation in China in 2001–2002, and how has it evolved? Eric Rongley: When I resigned from Capital One, I had to decide if I wanted to do the business in India or China. I knew that if I did the business in India, it would be accepted by the market easier.
Sramana: When you started the operation, what were your first steps? What was the startup process? Eric Rongley: As an expat in Shanghai, I had a lot of other friends in Shanghai who were doing well and feeling entrepreneurial in the heyday of the dot-com era.
Sramana: When you decided to start Bleum in 2001, what area of outsourcing did you intend to focus on? Eric Rongley: I was doing product development when I was in India and had teams as large as 100 people. I saw companies like Infosys that were very small, and I realized that companies that understood