Mr. Dhume emphasized the need for offering the right
kind of service, a balance of skills and resources. He
said: "We cannot start with somebody fresh off the
block. There has to be proven execution, a track record.
There will be problems along the way, but it is
important that things should be worked out in a mutually
beneficial way."
Mr. Craig Allen, of KPMG LLP, said that his
organization helped companies to set up operations here.
Companies must keep in mind the tax situation, and the
best ways to structure corporations, production facility
and sales office. He said there are a host of different
issues that come into play when starting up here, and
KPMG LLP help out with corporate labor law. He said the
key was to have the skills to make the company grow.
There has to be a solid business plan. Also show that
you are able to deliver the goods. That you have some
kind of established reputation or track record.
"Obviously, if you have a track record, that�s
the best thing. Without that, you must have a clear-cut
business plan indicating how you expect to fulfill the
client�s need, how you expect to generate
revenues."
Rakesh Dawar, Regional Manager of Tata Consultancy
Services, said that over the past year TCS had seen that
there is a major requirement to have people locally
present in the US, not only at the client site but also
offsite. He said the trend today is for e-business. The
timescale has gone from months and years to days and
weeks. For that reason, there�s a lot of pressure to
have people right there on site, either shoulder to
shoulder with the team or somewhere else outside the
client�s premises.
"To penetrate any one of these markets one needs
not only to have credentials and references from clients
but also to have some sort of processes. You need to
have mature processes in place," Mr. Dawar said.
TCS has also tied up with universities, which was
another way to penetrate the market. "There�s a
lot of intellectual work going on in universities today.
They don�t have the ability or funds available to try
out their ideas, so it is organizations like us who
partner many universities. We have tied up with
universities and set up common R&D labs here as well
as in India."
Mr. Dawar emphasized the importance of building a
good relationship. "The key to success is
relationships. You can derail it easily by setting wrong
expectations of the client. When we go into an account,
we must be honest about what we have and what we don�t
have. What the company can offer in terms of skills and
capabilities. If that is set up right from the
beginning, then things will go smoothly. If your client
has not worked in an offshore company previously then
the onus lies on us to make them aware how these
processes work. Make them understand what the pitfalls
are and how we can handle them. If those things are all
brought out clearly upfront, there�s no reason why a
relationship should go sour."
Mr. Dawar added that it was also important to
understand American culture and to be able to offer
people who understand that. Not only technical skills,
communication skills are also extremely important.
"In Texas there is a saying that people do business
with people they like. People are very conservative
here, so first thing is you�ve got to make them like
you. There are times when you will have problems with
your projects but you should be able to manage those, to
react to it the way the client wants you to."
Mr. Anil Sahai, Marketing Director of Scicom
Americas, said his company�s focus was on the
technical and scientific marketplace. The IIS
(International Informatics Solutions) group of companies
was formed in 1989. The chairman, Saurabh Srivastava, is
also founder and chairperson of NASCOM.
"Our niche area at Scicom is technical and
scientific computing. We do a lot of work for mainframe
clients using their own mainframe. Our requirement
really is for people in the scicom area -- which is
quite a big area over here -- who have a mathematical or
computational background. We train them in India for
offshore projects and then after they gain at least two
years� experience, if the client has an onsite
requirement, get them to work on their project. But our
forte is mainly doing projects offshore," Mr. Sahai
said.
Mr. Sahai thought it was very important for Indian
companies to obtain quality certification. "If you
are competing with TCS or Satyam, who have the quality
certification, if somebody has achieved that quality,
smaller Indian companies will find it very tough. The
only other way is to have a solid reference or proof of
your having delivered projects on time and on
budget."
Mr. Slocum said he frequently got calls from services
providers. "The question I ask is what makes your
company different from everybody else�s? As far as
relationships are concerned, we try to make sure our
vendors do everything they�re supposed to do. The
other thing is to ensure that we at BMC do our share.
After all, I want the partnership to be as successful as
the vendor does."
Mr. Sahai added: "Some of the clients in
companies I deal with are demanding much more than just
software development. They want us to do software
development, then move on to maintenance, product
enhancement and finally support. We from India are
supporting sites worldwide. If Indonesia has a problem,
somebody from India handles that rather than someone in
their own company. So we have all to be total solution
providers."
Mr. Ashoke Nath drew attention to a point made by Mr.
Dawar regarding making contact with educational
institutions. "That is important. That is the ideal
place to get a lot of ideas worked out and to get a lot
of ideas."
Mr. Sudhir Desai of Compaq said that Indians today
have achieved tremendous visibility, not just as dotcom
entrepreneurs but in several fields.
"For the last couple of years the window of
opportunity has been tremendous," he said.
"The market is phenomenal. And it continues to
grow. Compaq�s annual growth rate is still 18 to 20%
and there are sectors within that which are growing even
more phenomenally. Every few years we have a revolution.
A couple of years ago, e-business was the hot term and
it opened up a huge number of services opportunities.
"I think this is a phenomenal time to be in
services in customer applications. There is a genuine
problem here of a shortage of skills. What we have
stepped up to do from India is a phenomenal thing.
Everybody recognizes the tremendous pool of talent that
we have got. So that again is a genuine opportunity.
Shortage of manpower is a genuine problem. Services
companies are the need of the hour. So, on one side of
the picture is very rosy. The economy continues to grow.
There is clearly an opportunity for all of us. The
question is what is the next step? How do you build on
that opportunity, what do you do with that opportunity?
"Some of you might be big enough to command
attention but others of you might have to complement or
supplement someone else�s IT. At Compaq we work with
several partners. Even we, who could be self-sufficient,
are not self-sufficient. We partner with a lot of
different people. One of the earlier value propositions
for Indian companies was cost, they were cheaper. That
may still be the case to some extent but people are
moving on and doing different things. Today,
relationships are critical.
"America is not one country. We all speak the
same language but there are vast differences and you
have to be conscious of those differences. In the South,
for example, things are very different from the way they
are in the Northeast. Relationships are extremely
important here in the South. Trust is very important
here, in services. They want to know you, they want to
be able to say �I went to somebody I could trust�.
Part of doing successful business here is relationships.
"Several of my friends in business in India tend
to spread themselves very thin. They have a directory of
North American businesses, but it�s impossible to
build business that way. Though there are tremendous
opportunities, the challenges are no different from
those anywhere else. You guys have the additional
challenge of being thousands of miles away. Depending on
your size, your scope, how deep your pockets are and how
strong your presence is, you have to push your
strategy," Mr. Desai said.
Q: What are the opportunities for associating
with Compaq?
Desai: We are looking at partners every day. You
have to ask the question �What do they look for in a
partner?� The criteria are simple, there is no set
prescription. You need to build the contacts, be
responsive, initiate a relationship. Making that initial
investment does take time.
In his vote of thanks and roundup, Mr. Ahluwalia
said: "We will try to help as much as we can. The
Chamber is here to help the community, to help India and
Houston do business together and I wish you all
success."