Archive for January 31st, 2007

Failure of Offshore Development and R&D Center India

Everyday you pick up business newspaper like economictimes businesss standard etc. Its filled with news of IT companies comming in hoards for setting up offshore development center to take advantage of cheap and knowledgable manpower in india. Though their is very less coverage on fact of downsizing and companies going back or looking at other countries.

Being from the SME sector its very important to emphasize SMB from US and europe had not been effectively take advantage of indian operations. Their are multiple factors responsible for it.

– Lot of expectation in terms of software engineering standards and manpower capability. In terms companies want their development staff to be as software design efficent as coding efficent. As this is what they are use to in US. But india does not have efficent skill set to do multiple hat jobs.

– This brings us to the next task training the employee to work according to company culture. By the time money is spent on employee training and he/she is ready they are ready to leave for company offering then next 2000 INR jump in monthly salary.

– Companies here either follow no process or too many processes which slow up the product development or research curve.

– Commitment to work long hours to finish project is often disappearing with shift working becoming the norms

india is all about number game or increasing capacity. If you have a formal process which could be run external to an organization and employing 5 people for 1 thing will also increase efficency and productivity by 500% then only it makes sense to co-locate to india. Otherwise you should consider investing with existing indian IT companies so that risk gets mitigated and local product management techniques in line with corporate objectives are meet timely.

Online Bus Ticket Reservation – Is it a sustainable model

In India we have recently seen advent of online bus ticket reservation model .Companies like which is in incubation with TiE-EAP bangalore are being seen as the next big thing to reveloutionize the industry. As bus is the preffered form of transportation for millions of indians every day. In this post we look at the model and its capability for replication and sustainabilty

–  Biggest thing against Online Bus ticket reservation in india is that buses dont run by timetables. Official every bus has an assigned route and timetable to match but unfortunately this is not the case. Hence taking money for a service which cannot be guaranteed is another issue. Now some of you may compare it to flight delays but then again your plane would not skip the airport. Buses some time dont stop at scheduled stops or may stop at unscheduled one by their own wish.

– Lack of organization form of transporters mainly this domain has been dominated by state transport corporation or small operators with upto 5-10 buses. Again private operators are yet to follow rules and routes and in tend to save road/toll taxes take non pre determined routes.

– Long luxury buses have just entered the market in last 2-3 years. With comming in of VOLVO we have seen bus travel sector compete with railways.

– Ticket prices for buses are very less and loading of service fees/transaction charges makes a big difference on non-luxury bus ticket pricing.

Reservation via call centre and via mobile phone payments. Passenger upto 30 minutes prior to journey can login via mobile phone to see which bus suites his requirement, make payment and is provided PNR# which can be checked at time of boarding the bus. This way instant travellers can benefit from such arrangements otherwise people will only use these services as time table checker and for trip planning instead of reservation.

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January 2007