MNCs fall in queue at India's tech heavens

[THURSDAY, MARCH 24, 2005 10:11:28 PM]

M M Sathyanarayan, author of a book titled “Offshore Development & Technical Support is one such US-based consultant, himself an early adopter of offshore development while at Tandem in the early 1990s. According to him, one of the most obvious reasons for disappointment is client expectations. People have unreasonable expectations of offshore savings, says Sathyanarayan.

And these days several companies are looking back and trying to assess whether they have derived the value that they had envisaged. Some of them want me to do the value assessment, find the problem areas and fix the problems for them. In some cases the problems look like they’ll be there for years, he says.

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What Business Value are You Receiving from Your Offshore Strategy

Let’s reduce costs by going offshore with some development or service functions! The board and management agree to set up offshore activities in a place like India, China, Russia, Slovenia, or Bulgaria. Time passes. Everyone is happy. Right? Well, maybe. Most companies are finding that their goals are not being met in a consistent way. Issues creep into the picture. These issues are really symptoms of deeper problems.

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Boosting Shareholder Value With Offshore Development

By M. M. ("Sath") Sathyanarayan

In a business as competitive as the software industry, many companies look at offshore development as a way to improve their competitive advantage and reward their patient, or in some cases, not-so-patient shareholders.

Large software companies have taken advantage of offshore development since the early 1990s. However, for smaller companies with a growing business but without Fortune 100 experience and resources to "just do it" offshore development may be viewed as risky with an uncertain reward.

By adopting the best practices developed and proven over time by successful companies, risk can be minimized, and the lasting payback can flow directly to the bottom line.

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Guide to Intelligent Outsourcing

By David W. Bard
March 29, 2004 6:05PM

First, I.T. managers need to identify the reasons outsourcing seems right for their firm, says M.M. "Sath" Sathyanarayan, president of Global Development Consulting and author of &quotOffshore Development: Proven Strategies and Tactics for Success".

"Offshoring will be a major opportunity for those who understand its complexities and best practices to address them; they can use offshoring as one of the strategies for gaining strategic advantage," Sathyanarayan told NewsFactor's CIO Today.

However, outsourcing is a long-term commitment and not a quick fix for solving internal problems, Sathyanarayan emphasizes. And the investment is not strictly a monetary issue. Management needs to invest time -- as well as money -- into the venture.

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When interviewed by Margaret Steen for Info World, M. M. "Sath" Sathyanarayan said "Offshore or global outsourcing is a longer-term process unless it is cut and dried. If you're looking at software development of any kind, you've got to look at the longer haul. I advise people to start small, make sure things work, and then scale up."

To know more about his views and what other major consulting giants think, visit the Website at www.infoworld.com

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Think Globally, Act Rationally

Workforce Management
Offshoring jobs and salaries is all the rage in corporate America. But this panacea du jour has as many pitfalls as potential cost advantages. At a recent closed-door conference in Houston, promoters of offshoring to India touted the benefits to a rapt audience. But there were some sobering asides amid the hoopla, such as news of a 50 percent failure rate and savings that aren't so spectacular.

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Global Outsourcing of Software Support: Strategies and Tactics For Successful Implementation

by M. M. "Sath" Sathyanarayan
President & CEO

Abstract: The notion of Global outsourcing or leveraging skill sets around the world is being increasingly utilized by companies for gaining competitive advantage. In this article, M. M. "Sath" Sathyanarayan explores the challenges and benefits of applying this concept for software support and presents the Global Outsourcing Competency Model, which details factors and best practices for success. This article focuses on 2nd and 3rd level software support, though the principles apply to level 1 also. An alternative approach is discussed for those companies not choosing to deal directly with companies located overseas.

View the article in it's original form as it appeared in the Innovations magazine in PDF format by clicking here.

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Stanford Computer Industry Project
Winter 1998 Seminar Series

The Stanford Computer Industry Project (SCIP) holds weekly seminars, during the academic calendar year, to present preliminary research findings to colleagues and industry visitors. The seminar series also invites industry guests to present their views on compelling issues facing the IT industry today. These informal seminars provide an outstanding way for SCIP to establish and maintain on-going contact with leaders in industry. These seminars are also instrumental in bringing the various SCIP research teams together to formulate inter-disciplinary research themes. The seminars are free to the Stanford community and intellectual contributors.

February 4 1998 : Global Outsourcing of Software: What US Companies Can Do to be Successful by M.M. Sathyanarayan

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World Outsourcing Summit
March 17-19, 1998 Orlando, Florida

M. M. "Sath" Sathyanarayan, chaired a panel session on Global Outsourcing of software with panelists: Avron Barr, Director of the Stanford Computer Industry Project and Fred Gregurus, formerly Attorney at Fenwick and West.

The session covered the advantages such as, tapping an international talent pool often at lower costs and creating a twenty-four hour a day operation. It also brought out the challenges - legal, cultural, organizational and operational.

The conference was sponsored by Fortune magazine and several multinational companies.

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Software Development Forum
April 5, 2001, San Jose, CA

M. M. "Sath" Sathyanarayan was invited to be a panelist. At this forum, he addressed issues related to global outsourcing and global development. Summary of the program:

"You are faced with an important development project. Should you hire more people, squeeze more time out of your staff, or outsource? Outsourcing, while a good solution, isn't always the best way to solve every situation. Learn first hand the benefits and challenges to this alternative.

You have a product release or other development project that will take more resources than you currently have. You could squeeze more time out of your existing staff, but that could lead to stress, burnout and higher error-rates. You could hire additional temporary staff, but then you're faced with the challenge of managing their learning curve while keeping the project moving forward. Yet another option is outsourcing.

Outsourcing, while a good solution, isn't always the best way to solve every situation. Learn first hand the benefits and challenges to outsourcing".

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