Postcards from the Edge : Offshore Development

BRICin it

claireoh — Tue, 21 Apr 2009 02:59:00 GMT

I am engrossed in The White Tiger at the moment. Awesome read. The BRIC countries are so vast and so diverse, still growing at quite a pace: India forecasting around 5.5% growth.

In London last Wednesday the theme was India: the opportunity for UK companies in India and Indian innovation that can benefit from UK investment – great brainstorming meetings with UK Trade and Investment and Cartezia.

I am tasked with getting more involved with UK India Business Angels network (and UKIBC) and ping between a rush at the opportunity and a sigh at the size of the task, simultaneously. So much to do.

There’s a delegation of Indian companies to London in May/June courtesy of Envestors – as UK investors seek to invest in high growth companies. We are also working on a plan to take an outbound delegation to India with UKTI as more and more companies look to Asia to source skills and reduce operating costs.

At dinner last Tuesday night I received fascinating insight into business dealings in India at Tamarind as I met some great people I am now lucky to call friends: businessmen from families in India that have built empires – Gaurav the latest in seven generations of wealthy entrepreneurs and part of a self-confessed elite.

Based in Delhi, Gaurav is charming, ambitious and articulate. He is an unabashed capitalist and leader of the family business: sugar. Both he and Ajay (running a retail business with a sideline in helping entrepreneurs – he heads up the London chapter of EO) contest that wealthy businessmen in India are not doing enough to facilitate the next generation. I had thought philanthropy was more more widespread and naturally occurring but these guys set me straight. Only after some time did Gaurav mention that they have set up five schools, three girls scholarship programs, sports programs and education projects. Modesty prevails.

So what about India and tech start-ups? The guys say it will be some time yet (years) before wealthy local families invest in Venture (be it ICT, Cleantech, Hi Tech). Property and Retail dominate – like so many other countries, be they established or emerging. When in Ireland (as I am this week) they talk about apartments and land, not cool technology and spinouts from DCU and Trinity College.

The other factor is inward investment versus the desire to legislate for indigenous industry. While outsourcing continues to grow, so does the creation of start-ups and SMEs. Emerging markets seem to reach a kind of tipping point where some of the brains employed in BPO are now considering taking their idea, their IP, and turning it into a real business.

BizSpark downloads may reflect that trend and TiE India are doing a great job. I think Bangalore is the largest chapter.

I am seeing Jim O’Neill (Mr Bric) from Goldman Sachs for lunch on Thursday. He says the BRIC has emerged and now it is the turn of the next category – the N-11. From what I see, he might be right. Who am I to question? In the meantime we shall aim to prop up the economy by eating fine Italian cuisine in Mayfair on Thursday.

Congrats to Paul Smith and team

claireoh — Wed, 27 Jun 2007 13:15:00 GMT

Harvey Nash software division's route to world domination gets a boost this week with their news of the acquisition of Silk Road in Vietnam. Paul's write up of the recent trip to Hanoi is also worth a read. At least Paul has figured out how to upload pics on to his blog...

Greetings from Danang

claireoh — Mon, 28 May 2007 18:11:00 GMT

Hello from the coast of central Vietnam - what a fab place! Being a bit of a beach bum, this means I am in heaven. I've spent my bank holiday weekend lying on the sunbed, swimming in the South China Sea, and eating the most incredible (healthy) Asian cuisine. OK enough, enough..... I hear it's raining at home. (It rained here too last night but that meant today was an even-more-pleasant-less-humid 34 degrees :-0)...

Due to enforced vacation relaxation, I am incapable of original thought (and typing) so here are some wise words passed on by the lovely JohnC today:

“Networks rock, especially electronic ones. In the history of the world there has been nothing like them - telegraph, telephone, cellular mobile, broadcast radio, cable television, internet - to democratise the global, political economy, to bring us prosperity and freedom. Astonishing as they are, electronic networks can't hold a synaptic spark to the human brain." - Robert M. Metcalfe. The Founder of Ethernet

“Marketer Alert. Historically you filled your funnel with attention, and you slowly turned that funnel into cash - the bad news is your funnel is broken. You are not in charge anymore." - Seth Godin

“You want to be living in a space of good solutions, so when the problem changes, you're still there.” - Bruce Sawhill. Day Jet

“The Internet is not a wonderful new world. The internet just is a natural extension of the free market.” - P.J. O'Rourke

“What information consumes is rather obvious: it consumes the attention of its recipients. Hence, a wealth of information creates a poverty of attention.” - Herbert Simon

“The best way to have a good idea is to have lots of ideas.” - Linus Pauling. Chemist

“People get very creative if you include them." - Arnold Schwarzenegger, Governor, California

“In 1776 Adam Smith, the founder of free market economics said - There are three factors that constitute the free market, pursuit of self-interest, division of labour and freedom of trade. There you have the internet without so much of a mouse click.” - P.J. O'Rourke.

“The single most important thing a company needs to show in a crisis is that it cares.” - Bruce Blythe, CEO, Crisis Management International

“The smartest marketers aim to inspire, not control.” - Seth Godin

“The network effect is expanding the collective intelligence of the human race. We can hope that on the whole we humans are getting smarter by the square of some very large numbers. It’s enough to make one optimistic.” - Robert M. Metcalfe, The Founder of Ethernet

“Great companies don't push, they lead.” - Seth Godin

Greetings from Hanoi

claireoh — Mon, 21 May 2007 12:59:00 GMT

PRESS RELEASE

Microsoft Initiative Helping Facilitate Greater Alliances Between

UK and Vietnam Software Economies

Highlighted by the participation of Microsoft CEO Steve Ballmer, a delegation of UK companies hears about Microsoft Corporation’s commitment to facilitating high-value cross-border partnerships to drive the software economies of both countries.

Hanoi, Vietnam, May 21^st, 2007 – Steve Ballmer, Chief Executive Officer of Microsoft Corporation, started his first official visit to Vietnam today with a meeting with representatives from the UK Independent Software Vendor (ISV) partner community, led by Microsoft UK and Harvey Nash plc and supported by UK Trade and Investment (UKTI).

Vietnam is now the third largest offshore software services destination in South East Asia providing software services to the European and US markets. Vietnam has the second highest GDP growth (after China) with 8.4% in 2005 and 2006.

In anticipation of increasing demand for what is a highly skilled young population, where software is one of the critical growth industries, the UK now considers Vietnam an emerging force on the world stage. Together with several UK [financial services] enterprise customers (namely Legal & General and Marshall Wace), the Microsoft UK partner delegation is seriously investigating how to take advantage of the Vietnamese IT workforce.

Meanwhile, Vietnam ISVs (represented by VINASA) is keen to improve the IT skills of Vietnamese software workers so that their market can deliver world-class Microsoft skills and this was further reinforced by a visit to London in April, again supported by UK Trade and Investment and Harvey Nash plc.

Today, Steve Ballmer also meets with VINASA to find out what Vietnam needs to do to improve their ability to export software skills and attract outsourcing business from the UK and Europe, and what Microsoft can do to support Vietnam’s local software economy.

“Vietnam’s growth and ambition in developing their software services industry is a prime differentiator when choosing an off-shore location. Harvey Nash is a driver in the development and utilization of technology skills in Vietnam employing over 1,800 technology professionals who are helping Microsoft ISV partners develop innovative solutions. The real value for ISV’s is significantly reduced time-to-market, lower overall costs and delivering a faster return on investment” says Paul Smith, Managing Director, Harvey Nash outsourcing.

The trade delegation is a milestone in the closer business relationship between Vietnam and the UK as it opens up new outsourcing opportunities for local software companies and leads to increased competitiveness for UK firms, demonstrating Microsoft’s commitment to helping our ISV partner community become more profitable on our platform.

Claire O’Halloran, leading the strategy for ‘next generation’ partnerships at Microsoft UK, said

“As the leading technology innovator in software industry, we strive to connect companies and individuals around the globe and promote best practice. Part of our commitment to facilitating greater cross-border collaboration is reinforced by the International ISV Assistance (IIA) initiative which provides assistance in growing ISV’s revenue, increasing market share and maximizing their satisfaction with the Microsoft relationship. UK companies partnering with Vietnamese companies can deliver real mutual benefits and we’re pleased to be able to make that happen”.

Investment in skills in Vietnam by both Microsoft and Harvey Nash plc to date has been substantial: recently Harvey Nash/FPT joint venture partnership invested in the first corporate-run university to create Microsoft business-ready engineers, supporting Micosoft Vietnam’s training programs for the developer community work with our emerging technologies.

The UK Trade Delegation is sponsored by UK Trade & Investment (UKTI) part of the Department for Trade and Industry (DTi). This is the first ever trade delegation of this kind initiated by Microsoft UK and Government sponsored. This mission reinforces Microsoft’s aims to create an environment for ISV’s where enterprise and innovation flourish, driving the local software economy in both the UK’s developed economy and Vietnam’s emerging economy.

With operations in both markets (UK and Vietnam), Microsoft can be an effective bridge for ISVs of both countries to get connection and growth together. More broadly, Microsoft can play an effective role in fostering and developing trade alliances between UK and Vietnamese companies, at the same time encouraging technology transfer between Vietnam and the UK.

So far, a significant number of UK and international businesses use the development services of Vietnamese software houses: Government (both UK and US), Banks, Hedge Funds, Wealth Management, Technology Companies, Media and industrial businesses capitalise on the growth of the Vietnamese IT services industry. These include many household names such as Honda, Discovery Television, Legal and General, Royal Bank of Scotland, DTI, Capita plc, The Prince’s Trust, Petronus, Vanco plc, Barclays Capital, IBM, and Hewlett-Packard.

NOTES TO EDITORS

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

About Harvey Nash

Harvey Nash plc, a global professional recruitment consultancy and IT outsourcing service provider, is committed to delivering the very best talent and IT solutions to a broad base of clients. Its 3,000 staff and associates, operating from 30 offices covering the USA, Europe and Asia, pursue the highest levels of integrity, professionalism and quality in providing its unique portfolio of services: executive search, interim management, IT and finance recruitment and IT outsourcing. For more information please visit www.harveynash.com

About International ISV Assistance (IIA)

The International ISV Assistance initiative — a portal developed for ISV Certified and Gold Certified Partners — can help you expand your business internationally. With country-specific planning tools, expert guidance, and professional assistance offers, you’ll be equipped to find local contacts, target potential customers, and build your channel. Find out more at partners.microsoft.com

About UK Trade and Investment

UK Trade & Investment is the Government organisation that helps UK-based companies succeed in an increasingly global economy. Its range of expert services are tailored to the needs of individual businesses to maximise their international success. We provide companies with knowledge, advice and practical support. Read more at https://www.uktradeinvest.gov.uk/ukti

ENDS

Sign up for the Trade Mission to SE Asia

claireoh — Sun, 15 Apr 2007 11:55:00 GMT

Helping ISV’s access Microsoft Skills Overseas

Following on from successful events in October and January to highlight the opportunity around off-shore development to SE Asia, UK Trade & Investment (DTI) in association with Microsoft are taking a trade delegation of UK companies to Vietnam and the Philippines at the end of May.

What’s the opportunity?

There are still places remaining for ISV’s and Enterprises on this trip. In Hanoi, you will have the chance to meet with Microsoft’s Steve Ballmer and senior ministers from the Govt. The itinerary in Manila also includes a reception at the British Embassy with President Arroyo. There will be significant press engagement associated with this mission.

You can do both or either of the country visits: w/c 21^st May in Hanoi and/or w/c 28^th May in Manila.

Why should I attend?

Are you:

· Finding it difficult to get dev resource in the UK?

· Thinking about outsourcing to India or elsewhere?

· Considering migration off other platform to .NET or SQL but can’t find the time to do it?

Then this is an opportunity not to be missed.

What about travel costs?

UKTI will subsidise this trip (100%) for some companies as spokespeople and the Regional Development Agencies will provide grants to the remaining delegates. Our partners and Microsoft in the region will be providing substantial support on the ground so your costs are minimised.

I’m interested. How do I sign up?

For a detailed itinerary and an application form please contact Donna Chubb asap.

China's lack of talent

claireoh — Sat, 24 Mar 2007 21:16:00 GMT

A recent McKinsey report highlights some of the challenges faced in China around the quality of their graduates, pointing out that their dominance around manufacturing and IT oustourcing won't necessarily mean leadership in the service industries. Poor english language skills are thought to be a factor.

Microsoft has formed partnerships with four universities in China to establish software labs where students learn practical software development skills.

The chinese government is encouraging foreign firms locating in China to invest more in training and developing the talent they need, while the government concentrates on reforming the country's educational system. They need to improve the quality of their graduates, ensuring they have the necessary skills for services occupations, if they are to avoid a labour shortage in the future.

Meanwhile, Chris Boorman speaking at a recent conference in Bejing, also talks about language - this time, the need for foreign firms to adapt to local cultures if they are to make the most of the Olympics there next year.

Innovation in action...

claireoh — Fri, 09 Mar 2007 19:21:00 GMT

This past few weeks, I've met some great smaller consultancies delivering great thought leadership around Web 2.0 and next generation partnerships. Friday I met with the guys at The Rights Marketing Company who go about "unlocking innovation" and last week spent time with the CEO at Kaizo who have done great work on communication with the likes of Proctor & Gamble amongst others. Not forgetting the wonderful John Caswell at Group Partners who has kindly set up a Wiki for me and the team to work on the Developing the Future project.

Tuesday I'm hoping to get to the UK Technology Innovation and Growth Forum or at the very least will be going along to the awards dinner as a guest of UKTI who are doing great work with their Global Entrepreneur Program.

Another event happening this week (but alas I'm not attending in person) is the Microsoft Global Services India showcase. Saying that I'm seriously thinking of getting some sunshine in Dubai over Easter and catching up with the MS folks out there. Also hoping to get to South Africa to help get the next Trestle Foundation project off the ground. Fingers crossed we get some Govt sponsorship for that too. Will have to work on them over dinner on Tuesday....

Vietnam and the Philippines

claireoh — Sun, 04 Mar 2007 16:29:00 GMT

The extract below is from Ralph Schonenbach's speech at eServices in Manila. The Philippines and Vietnam has started to appear on the agenda more and more and we're pleased to see support coming from UK Trade & Industry to help Microsoft facilitate cross-border partnerships in this region. We're organising a delegation of UK companies to the two countries in May with their sponsorship.

Wondering what Harvey Nash are doing in Vietnam? Paul Smith's journal is a great way to find out more. The recent eServices conference was a great success - you can download presentations here.

Trestle Foundation and Group CEO honoured again

claireoh — Fri, 02 Mar 2007 14:50:00 GMT

Schonenbach Receives Government Award During the eServices Philippines: 7th Global Sourcing Conference and Exhibition

EDSA Shangri-la Manila Hotel, Manila, Philippines – 15 February 2007

Trestle Group CEO and Trestle Group Foundation Board Member Ralph Schonenbach today delivered a non-traditional presentation titled “Survival of the Focused – A Collage of Perspectives” at the eServices Philippines: 7th Global Sourcing Conference and Exhibition.

At the outset, Mr. Schonenbach joked, “As I begin, many people in the audience will probably ask themselves – what does this speech have to do with global sourcing?” Continuing the innovative presentation, Schonenbach merged four specific topics – entrepreneurship, shifting economies, environment and women – into a single theme and highlighted the following conclusions:

• “The next significant entrepreneurs – the next Bill Gates’ – will not come from the United States; they will come from here, from people like you. You will build the next billion dollar businesses - the billion dollar businesses that will shift economies.”

• “As governments recognize that global sourcing can provide significant new opportunities for their people, new infrastructure is being created, beautiful buildings built, highways constructed and telecommunications systems developed. But, through this build in infrastructure, we are also negatively impacting our environment.”

• “We need the entrepreneurs in this room to help find a solution for our environment. When I consider global sourcing today, I think, how can we use the collective intelligence of the world’s population to save our home for our children? And when I say collective, I mean collective and not 50% collective. In many societies, we are failing to engage the full promise and potential of women.”

• “Countries who do not engage both men and women will fail to realize their full potential. The sourcing of talent cannot be gender-based.”

Offshoring is about Tapping Global Talent

claireoh — Fri, 09 Feb 2007 01:50:58 GMT

Thanks to Nicola (our resident ebullient South African and newsletter editor) for highlighting this article where I also found a piece called called Outsourcing's own Long Tail. It is about "selling more of less" of course...but how does this phenomenon impact outsourcing?

Globalisation means services can be delivered from and to anywhere and historically people would flock to the low-cost high-skills centres like India - or increasingly places like China, Philippines or Ukraine. I even had contact from someone with a centre in Sri Lanka recently.

The study quoted in the first article found that "small entrepreneurial companies are more likely to initiate offshoring of high-value functions than large corporations. Forty-eight percent of the companies with fewer than 500 employees reported that their first offshoring initiative involved product development, innovation or engineering as compared to 16% in the case of large companies".

Open Borders

claireoh — Sat, 27 Jan 2007 13:15:42 GMT

Outsourcing in general is an emotive subject - we're used to seeing newspaper headlines with the words "redundancies....call centre......Bangalore" and widespread perception is that offshore software development is bad for UK plc.

However, it seems it may be inevitable and a phenomenon that is here to stay. Companies can either embrace globalization or fail to compete. Last year, Microsoft collaborated with the British Computer Society and Lancaster University to produce a report on Developing the Future which addressed this as an issue. You can download our response to DtF here.

Our new Chief Business & Marketing Officer in the UK, Matthew Bishop, delivered a great keynote at our recent Offshoring event at St Martin's Lane hotel (nice venue btw). Read more about Matt's comments.

There are significant advantanges to be had for firms going down this route - interestingly "access to skilled labour" comes top of most lists of reasons companies do this; closely followed by "cost savings" as one might expect. Trestle Group have some useful research and the BCS has since published more guidance on the subject. CIO have good commentary.

Unishores, acting as one of our advisors for this initiative, provide assistance to companies looking to offshore.Their MD, Sanj Prabhakar, is a member of the NOA and the standards body ComQual.

Sanj writes about our experiences in October 2006 where we brought together people from India, Vietnam and the Philippines to meet with UK companies interested in exploring cross-border partnerships. QuickStart Global were one of the partners presenting at that event.

Much of the work we are doing is in partnership with Microsoft Philippines' developer partners and Harvey Nash - probably better known to most of us as one of the world's largest recruitment companies. Their software development centre in Vietnam has proved very popular with a good proportion of our UK ISV community. Read their Three Top Tips on the process here.

Offshoring: Friend or Foe?

bidirectional — Mon, 15 Jan 2007 21:00:24 GMT

Microsoft in the UK are hosting an evening event in association with Harvey Nash on the 24th January in London aimed at introducing general concepts and raising awareness of potential issues. For more information and details of how to register, look here.

According to a recent survey from the Software & Information Industry Association (SIIA), offshoring work at software companies is on the rise.

In addition, a reported fifty seven percent of software companies that responded with existing offshore operations said they increased offshoring work significantly within the past eighteen months.

There’s also interesting comment on cost savings versus time to market and challenges relating to managing a remote workforce over different time zones. To read the complete article “Survey: Software companies increasing offshoring work” on CNet News.com, click here.