Sramana Mitra: How do the dynamics compare with Romania and Noida, for example?
David DeWolf: What you find are different strengths in different areas. There is a very long history in India of doing outsourcing, but that history is also typically from the IT outsourcing and more about the operational aspects of IT rather than core engineering. What we are able to find in India are legacy technologies, the ability to scale very large teams, and very strong talent. India is phenomenal at quality assurance as well. >>>
Sramana Mitra: Can you mention some clients specific to the media industry?
David DeWolf: In addition to PBS, we have a company called Grab Networks. They are a very innovative company that was doing media sharing online. Acetrax, which is a European equivalent of Netflix and was acquired by Sky TV, is a client of ours. We did a significant video on-demand type product development. Black Arrow is another innovative company and a fast growing mid-market firm that specializes in the media and in mobile advertising. >>>
Sramana Mitra: How much of that are the clients willing to let you drive?
David DeWolf: We see it all the time. What we do not get into is the business strategy part of it. Companies are looking for us to partner with them, to ask the right questions, to help flesh out the revenue model, and to really engage in developing a robust product strategy. What we find is that those companies that are not software companies at their core but are rapidly becoming software companies simply don’t know how to be a software company. That is why they are absolutely willing to engage with us on that level, talk with us, and leverage us to help develop that product strategy. >>>
Sramana Mitra: How much of this is happening due to the implosion of the media industry that companies are outsourcing product development to you, and what is the impact of that implosion on your business?
David DeWolf: What you see is that technology is advancing so rapidly and innovation is occurring so fast, that enterprises simply can’t keep up with the newest and latest trends. It is not for the sake of technology itself. >>>
David DeWolf is the founder and chief executive officer of 3Pillar Global. The company is a product developer that helps other companies develop their own software products, where those companies often are not familiar with the strategies involved in software development and deployment. David holds a bachelor’s degree in communications and theology from the Franciscan University of Steubenville. Previously he worked for Digital Focus and consulted for several companies, from small startups to Fortune 500 companies. In this interview he explains 3Pillar Global’s role in the outsourcing industry and talks about future trends, especially in the realm of university education.
Sramana Mitra: David, let´s begin with introducing 3Pillar Global to our readers as well as giving some background about you. >>>
Sramana Mitra: I think it is more in the IT services world, where you develop software. Or in call centers, I also see that trend.
David Schnitt: For call centers I can see that. I am sitting in our office in Manila right now, and we have great people who have very neutral accents; they are well trained. Given that the Philippines was an American colony for years, people here are very Americanized. A lot of the client-facing work we have we do out of our Manila operation, and if the client´s vendor or customers call our office here, they don´t know that we are sitting here at all. >>>
Sramana Mitra: What are the dynamics in the Philippines right now, and what are the dynamics in Chennai that you are seeing in each of your segments?
David Schnitt: What we see in Chennai is that there is still competition for good talent, as there is anywhere. But the Indian economy has slowed, and because of that we find it is easier to find good people than it was a couple of years ago. >>>
Sramana Mitra: Your ADP paychecks are well rolled out into the segment itself, but the other accounting functions are not, I presume.
David Schnitt: If you look at ADP paychecks, they are partial outsourcers. Potentially they are payroll processors. The still rely on somebody having an in-house payroll department that seeds their systems with hours, rates, salaries, and changes. If you look at the numbers there, you will find that the cost of maintaining an in-house payroll department is much higher than using an ADP or paychecks. When we work with a client, we take over and manage the entire process from end to end. We are able to achieve better results, a better process, and greater cost reduction because we are looking holistically at the entire process. >>>