Category: Strategy

In 1878, Alexander Graham Bell demonstrated the use of a telephone to Queen Victoria. Subsequently, the Telephone Company Ltd was set up with a capital of £100,000. There were only 7 or 8 subscribers initially. Queen Victoria, certainly, would have found the telephone a novelty, something remarkable designed by human beings, where a wire could transmit voice to another person who was nowhere close by. Telephone lines were quickly set up in Europe, North America and colonies of European powers, including India. If Queen Victoria suddenly appears today in our hyper-connected world, she would wonder at the nonchalance with which we look at the prospects of sending gigabytes to someone in a different corner of the globe. Indeed, the world is wired. It is so wired that it is hardly possible to be away from the Internet for too long. Yet, there are degrees of ‘wiredness’ and certain cities & countries are more wired than the others. 10 wired cities of the world If we are to go to 10 of the most wired cities, you would probably consider the Internet speed, availability of citywide Wi-Fi, openness to innovation, support of public data and the importance given to security & data privacy. Future Cities, a website that is dedicated to talking about global urbanization, published a list of 10 cities that are most wired in the world and we couldn’t agree more. In the top 3 positions, we find the economic powerhouses of Seoul, Hong Kong and Tokyo. The rest of the 7 spots are occupied mostly by European cities except Montreal and Seattle, at numbers 6 and 7 respectively. The European cities include Prague, Amsterdam, Geneva, Stockholm and Vienna. In this article, let us take a look at what it is like to take a vacation in these uber-wired cities, if you happen to visit them for business reasons and we do believe, one day or another, you will. Seoul The capital of South Korea, Seoul is a gigantic city that is the symbol of capitalism’s success. While its northern neighbor is wallowing in a warped sense of communism and tyrannical regime, South Korea adopted capitalist policies after the Korean War & grew to be one of the richest cities in the world. The city is one of the data hubs of the world and it is here that you can learn more about the Korean War, the mistakes that human beings made during World War II & take a few sips of rice liquor. While you are never disconnected from the Internet when you are in Seoul, it is still possible to find moments of peace and relaxation at its monasteries & temples. Hong Kong Before it became an autonomous region of China, it was a British protectorate helping it to be a modern, capitalist and tolerant city. It grew to rival European and North American cities & today, thanks to the influx of global finance companies and IT, Hong Kong could easily give London, Paris, Tokyo & New York a run for their money. When in Hong Kong, you need to discover the war memorials, the rich museums and ancient alleys, which still exist amidst skyscrapers. Tokyo The city needs no introduction and has been one of the 4 major cities of the world, with the other 3 being London, Paris & New York. Tokyo continues to retain its importance in the fields of finance, technology, politics and culture. The retail hub that it is, one can never get enough of strolling around the Ginza shopping district. It is an example of human determination and discipline, with which it was rebuilt after the World War II. Sometimes, you might find it difficult to find a moment of calmness amidst all the technology but fret not. Tokyo has a number of traditional bars where you can taste saki and speak to people from other countries. A journey to Tokyo is very important, if you are the owner of a business. It is the city where you can learn what discipline does to people. Prague The ancient city of Prague was immortalized in Bertolt Brecht’s ‘The Ballad of Soldier’s Wife’. In that song, the wife of a soldier receives a pair of high-heeled shoes along with other gifts from other European cities. Finally, she receives the widow’s veil from Russia, an obvious reference to the number of young soldiers that have continued to die in the many wars that humans have fought. A visit to Prague will never allow you to forget wars and the damages that they have caused to civilization. When you visit Prague, do not spend your time texting people and ‘Instagramming’ pictures. Take time to discover its ancient streets, museums and learn more about the World Wars & the soviet incursion, when it was still part of Czechoslovakia. Prague might be the 4th most wired city in the world, surpassed by only Tokyo, Hong Kong and Seoul but it retains its old-world charm intact. Amsterdam The capital of Netherlands and one of the most important cities of the European Union, Amsterdam lives up to its reputation as an uber-wired city. Apart from marveling how wired this city is, you can also take time to rent a bicycle and bike around the town. It is one of the safest cities for bikers and is a charming little big city. Its compactness and uber-urbanization have earned it the title of being a ‘little big city’. Amsterdam is one of the most liberal cities in the world and you could probably bring back some of that attitude to your own company, when you return from your vacation. Montreal The 3rd largest French speaking city in the world (after Paris and Kinshasa), Montreal is known for its unique culture. Along with Quebec City, Montreal is the centre of French culture in Canada, where French is an official language along with English. If you have a company that deals with French speaking countries, you could probably understand Francophone culture

If you often travel to distant cities to attend conferences and seminars or to strike a business deal, you probably have visited a number of business & IT parks around the world. The fact that we deal with Information Technology and the Internet provides us with opportunities to visit these ‘silicon valleys’ of the world & explore different cultures at the same time. Though our profession can often keep us busy, one of the fringe benefits is that we get to travel around the world whenever software conferences and IT or technology meetings are held. One day we could be in San Francisco and on the other, in Barcelona. The next week, we could find ourselves in London. This is a privilege that we need to acknowledge that we have, which most professionals and entrepreneurs do not have. Being able to visit exotic countries and to learn about their cultures also help us to run our own businesses in a better fashion by understanding different ways of working & managing. When we visit IT and tech parks around the world, we always come back with ideas to recreate what we have learned in our own countries. Certainly, IT and tech parks help us to learn a lot about local cultures in spite of them being the pinnacles of globalization. In this article, let us take a look at 10 IT & business parks around the world, which are all located in exotic locations and listed in no particular order. The next time you visit any of these, do not forget to come back and let us know what your experiences were. • Hoa Lac Hi-tech Park, Hanoi, Vietnam Vietnam probably does not come to your mind when you think about Information Technology. Here is the deal. Vietnam has slowly been working towards becoming an outsourcing giant and it already has. With access to great technical education and a large population of youngsters, Vietnam has achieved what many others have only tried to achieve – contribute to the world of IT, in spite of difficulties at home. The Hoa Lac Hi-tech Park is the largest and the first hi-tech park in Vietnam. Close to Hanoi’s Noi Bai International Airport, Hoa Lac Hi-tech Park has 6 functional zones – Research and Development, Software Park, Hi-tech Industrial Zone, Education and Training Zone, Central Area (for conferences, restaurants etc.) and a service zone where one can find supermarkets, hospitals, hotels etc. • Information Tech Park, Bangalore, India When we speak about Information Technology, Bangalore cannot be ignored. It probably introduced the verb ‘to be Bangalored’ in English language. Located 18 kilometers from the city centre, the International Tech Park is located at Whitefield, a quaint colonial suburb of Bangalore, which has now been replaced by glass-facade buildings. Along with Electronics City in the other end of the city, the IT Park in Bangalore caters to most of the software companies that have set up shops in Bangalore. • Konza Technology City, Makueni, Kenya This BPO and business centre project undertaken by the Kenyan Government seeks to address the needs of IT companies that have slowly begun to move to Kenya. It shall be built on a land of 5,000 acres and will house hotels, shopping malls, offices, convention centers and a science park. It is expected to cost $14.5 billion and is located 64 kilometers south of Nairobi. This is probably the place where you can not only work on your coding but also learn more about the African Savannah. • Har Hotzvim, Jerusalem, Israel Israel is one of the most important centers of Information Technology and entrepreneurial activity in the world. Israel’s IT boom has helped the country to excel even the companies in California’s Silicon Valley. Har Hotzvim is located in northwest Jerusalem and houses companies such as Sandvine, Radware and Teva. Apart from large companies, it also houses more than 100 SMEs and provides employment for thousands of people. Jerusalem is one of the most ancient cities in the world. If you ever get to visit this hi-tech park as part of your business, do not forget to learn more about this wonderful city. What you learn can leave you humbled. • Digital Media City, Seoul, South Korea The Digital Media City is located in Seoul, South Korea. This massive complex houses networked offices, digital agencies, exhibition halls, serviced apartments, cultural centers and auditoriums. With an area of 6,100,000 sq. ft., it is very huge, we can say. The hi-tech city is dedicated to companies that deal with e-learning, digital media, broadcasting, games, movies and music. Many well-known IT companies such as Pantech, LG Telecom and others have their offices too. When you are there, do not forget to visit the Korean Film Museum and spend some time at the Korean Film Archive. Seoul itself has a number of places to visit and see, outside the Digital Media City. Being an economic powerhouse, it has some of the best shopping and cultural options in the developed world. • Cebu IT Park, Cebu City, Philippines This 24-hectare IT and business park is located in Cebu City and is dedicated to Information Technology companies. Some of the companies that have offices in its massive buildings are Convergys, Stream, eTelecare, Accenture and others. IBM too has its office at the Cebu IT Park. When you are in Cebu, make sure that you visit other cities of Philippines as well. The colonial history and the diverse culture of this island nation make it a unique place to learn things from. • SmartCity, Kalkara, Malta If you thought Malta was all about the Sun, sea and sand, think about it. It houses a technology park that is still under development. When completed in 2021, it will cover an area of 3,60,000 square meters. The first offices already opened in 2010, which means, you might have to take a flight to Valetta very soon. Learn about the ancient Greek and Roman cultures when you are in Malta. • Business Park Sofia,

Some of the hardest hitting criticisms against outsourcing have come in the form of anti-globalization protests and a belief that it increases unemployment in the home country. Contrary to such beliefs, research papers and academic studies have pointed at something more positive – that offshore outsourcing is a viable, beneficial & supportive B2B exchange that helps in growing businesses. There are also those who advocate localized and onshore outsourcing, as opposed to global outsourcing. Those who support localized outsourcing believe that smaller guys within the same geographical area as the client will be better able to understand cultural quirks that might act as hurdles when it comes to global outsourcing. Similarly, proponents of onshore outsourcing highlight the importance of vendors having a physical address nearby, which helps to keep track of their work and also probably to keep projects accountable. Academic and scholarly support for global outsourcing We found a study that evaluated the choice of geographical location as governance strategy, when it comes to outsourcing contracts. The results were not very surprising. The study highlights the benefits of global outsourcing over onshore and localized outsourcing. It also highlights the importance of developing personal and informal relationships with outsourcing agents and offshore vendors, which minimize the cultural differences that proponents of localized outsourcing speak about. The study’s aims, methodology and its findings Anindita Chakravarty, Rajdeep Grewal, Suprateek Sarker and V. Sambamurthy published a paper titled “Choice of Geographical Location as Governance Strategy in Outsourcing Contracts: Localized Outsourcing, Global Outsourcing, and Onshore Outsourcing” in Customer Needs and Solutions (CNS), which is a premier journal for scholarly work related to customer needs and related critical issues. The researchers applied Transaction Cost Economics to imply that the degree of relational governance required to manage an outsourced project might benefit from specific geographic locations. They concluded that global outsourcing is more effective for relational governance strategy for most outsourced ventures than onshore or localized outsourcing. The study has several important findings • Localized outsourcing is not a very popular choice. The researchers speculate that it could be due to certain cultural and political barriers that might occur, even when operating from the same country. They also note that this result challenges the assumption that it leads to higher rates of unemployment and wage compression. • The only time that shareholders preferred localized outsourcing was when the contracts were with known suppliers or vendors. This again reinforces the importance of developing informal relationships with vendors and suppliers so that cultural barriers are minimized. • Even though relational governance became more complex with global outsourcing, shareholders preferred to engage in global outsourcing than onshore outsourcing. They speculate that onshore outsourcing is not possible always because vendors would have to have an office everywhere the client, usually, comes from. • The study revealed that to manage operations in multiple locations, global outsourcing was more beneficial. It is simply not possible to locate vendors in every country or location that a business might branch out to. Having a consistent global outsourcing partner leads to safer project management. • A global outsourcing mode, which not only has offshore presence but also onshore presence seems to be a better solution. Such a solution provides clients with top talent from across the world. This is again not a new finding and is something that most proponents of offshore outsourcing have repeatedly stressed on. Our thoughts Most IT outsourcing companies have stressed on the importance of finding a suitable vendor who is approachable and reliable. For first time clients, it is often advisable to read through testimonials and speak to people from shortlisted outsourcing agencies & see if one can develop informal relationships. Much academic research has stressed on the importance of a non-hierarchical and informal nature of business relationship for the success of outsourced projects. It is advisable to find a reliable and reputed global IT outsourcing partner to minimize risks & enhance productivity. The entire study can be downloaded (PDF) from here. Reference • Chakravarty A., Grewal R., Sarker S., Sambamurthy V. Choice of Geographical Location as Governance Strategy in Outsourcing Contracts: Localized Outsourcing, Global Outsourcing, and Onshore Outsourcing. Cust. Need. and Solut. 2014;1(1):11-22.

The original Silicon Valley, which is a nickname given to the Bay Area of San Francisco has become a name associated with a number of tech hubs across the world. All of these cities and zones house international IT companies, biotech enterprises, R&D centers and businesses. These tech hubs have changed the demographics of those cities and immigration from around the world have made these cities more cosmopolitan and international. If you run a tech business, you probably will have to visit any of these cities frequently or you probably already live there. Silicon valleys of the world not only house important tech companies, but they have a charm of their own, far removed from the Internet and silicon chips. Most people, who visit these cities, tend to overlook the local significance and touristic charm as they believe that these cities are mostly important because of the tech companies. Nothing could be more wrong than this assumption. Each of the silicon valleys listed below are amazing tourist destinations, which a discerning CEO or head of the company can discover in the lap of luxury. Thanks to new money generated from tech companies, most of these cities are known for their boutique hotels, spas and places where you can relax. Apart from that, we shall discuss the unique charm of each of these cities. San Francisco The original Silicon Valley, San Francisco, needs no introduction. It is the second largest city in California and is known for its mild climate, fog and the all-too-famous bridge. The city has always been a vibrant metropolis where the bohemian thrived. Writers, film makers, artists and intellectuals have made San Francisco their home for times immemorial. During the gay liberation, San Francisco became the centre for all activism and protests. The thriving Castro district is a great way to relive those days, some of which are filled with pain as well, because of the AIDS disaster of the 1980s. Nevertheless, San Francisco is still the most progressive and liberal cities in the U.S. With an amazing selection of bars, nightclubs, restaurants and museums, there is never a dull moment when you are in this city. Just make sure that you do not arrive here in the middle of winter as San Francisco tends to be colder than you would expect a Californian city to be. Campinas This Brazilian city is hardly known outside tech circles and even among IT professionals. Hence, Campinas will need a quick introduction. The irony is, Campinas is very similar to San Francisco in a number of ways. It is located next to a metropolitan city just like San Francisco is. Sao Paulo is just a few hours away from Campinas and that metropolitan region is the commercial nerve of Brazil. Campinas is home to UNICAMP, one of the most prestigious universities in not only Brazil but all of South America. With its mild climate, museums and a vibrant bar and nightlife scene, Campinas is one of the most exciting Brazilian cities. You could choose to discover the little known Brazilian cuisine and attend a Bossa Nova concert in one of the bars. You could also take a moment to admire all the beautiful colonial Portuguese buildings that were built hundreds of years ago. Campinas will surely delight anyone who loves culture and history. Cape Town and Stellenbosch Stellenbosch is near Cape Town and is considered to be the silicon valley of not just South Africa but all of Africa. However, when you are in Stellenbosch or nearby Cape Town, you need to remember that you are in one of the most beautiful cities in the world. The natural beauty that surrounds Cape Town is truly out of this world and is not something that you would get to see anywhere. The cliffs, the mountains and the blue seas might remind you of Rio de Janeiro but Cape Town is a completely different ball game. When you are in Cape Town, make sure that you also taste all the exotic wines and discover colonial buildings which are perfectly maintained. Cape Town has had a difficult history like the rest of South Africa but it is one of the most vibrant cities in the world today; and above all, it has the best climate that you could ever imagine. It is mild, windy and cool. Bengaluru Bengaluru does not need a lot of introduction as a silicon valley either. It was Bengaluru that put India on the map of Informational Technology. Ever since the 90s, Bengaluru has grown to be a chaotic urban sprawl denuded of trees and green patches. It is no longer the pensioners’ paradise it once used to be and it is also no longer the garden city as it was once described. Urban development and unsustainable growth are some of the darker sides to IT industry and that can be witnessed in Bengaluru. In spite of its problems, Bengaluru still has a live bar scene and has many old pubs to visit. Take time to visit the nearby national park and grab a drink at one of the pubs. There is also a lively underground music scene, which is, usually, not found in other cities of India. Nearby places like Ooty, Coorg and Goa provide escapes from the chaos that Bengaluru is today. Hong Kong The megapolis, which continues to remain autonomous within the larger Chinese territory, is one of the best kept secrets of the world. Hong Kong might be a modern sea of skyscrapers. However, it also has much to offer to people who would like to discover Chinese architecture, ancient temples and a vibrant bar scene. Hong Kong is known for its glitzy clubs and malls, which are often some of the best in the world. Being a tourist destination itself, Hong Kong offers visitors all kinds of entertainment. Whether you want to shop, dance, drink or eat, you will be able to do everything in Hong Kong. Moreover, it is a world class

It is election time in India and many companies abroad have wondered what the scenario is going to be, especially when it comes to Indian economy. Before we speculate on future matters, let us understand where the country is right now. Indian currency devalued and experienced a lot of panic last year, when it fell against the dollar drastically. The rupee has stabilized so far but its performance has obviously not been stellar. The country has also been witnessing a lot of melodrama, which sort of diverts the attention from real economic problems to something that isn’t quite necessary. India looks bullish and it might be a good year to invest With all that in mind, India still looks bullish and the coming months are going to be exciting for those who plan to invest here. No matter which party makes it to the power seat, certain economic policies will remain the same and one does not have to expect drastic changes in spite of the noise. All major political parties of India know that IT is one of the biggest revenue earners for the country and nothing need to be done that will scare away investors. With that in mind, we list a number of reasons why India is actually a better place to outsource work to now than ever before: The rupee is weak India was in news last year when the rupee fell so hard that most analysts feared a point of no return. The currency has stabilized but still remains weak against the dollar. At around 60 rupees for a dollar, the rupee is cheaper than it ever used to be. This is good news for companies who want to outsource work to India. Much can be bought and outsourced for the same dollar than a year or two ago. Rupee devaluation is, obviously, not a permanent factor that you need to be looking at but in the short term, you will be able to get some work done for a lower cost; and that is never a bad thing. More graduates are unemployed Indian engineering graduates have increased by several folds. In India, most people finish a technical degree before they even think about their careers. While that is not the best way to look at one’s career, it leaves a lot of people desperately looking for jobs that they are well-trained for; and there is an opportunity for overseas employers who are looking for less expensive IT graduates. Freshers and even experienced IT workers are ready to work for a lower salary than much of the world elsewhere. Moreover, Indian companies are not able to hire all the IT graduates and there is always a ready pool that is willing to work. Infrastructure is being built in major cities As it is the time for elections, most cities are beginning to see a lot of infrastructural projects being taken up. In order to woo the voters, political parties have started grand infrastructure projects so that investment can be attracted. While this is nothing but political cronyism, it works well for the business community. No matter who is in power or who comes to power after the elections, the infrastructural projects will be continued and completed; and that will help not only Indian companies but also companies that plan to outsource work to India. Better infrastructure will be available in smaller towns too, outside New Delhi, Mumbai, Kolkata and Bangalore. Economy is getting stable While the Indian economy was in a freefall, it has stabilized now and is beginning to improve. Though the rupee might not become as strong as it was against the dollar, economic prosperity will occur, thanks to the number of infrastructural projects that have been taken up. Indian economy is also likely to see an upward growth in the coming months, thanks to an increased focus on fiscal issues. Certainly, things are not perfect in India. When it comes to Indian economy, things are far from being perfect. Nevertheless, there is room for optimism and when it comes to outsourcing, it, actually, might be the best time to send work to India. A cheaper rupee and a number of IT graduates will ensure that overseas companies have all the opportunities to increase productive and save costs.

IT outsourcing has reduced costs, improved production and boosted revenue for most companies. By outsourcing non-core IT functions, companies have managed to focus on their core activities and ensure a better financial report. However, IT outsourcing is not perfect. There are a number of risks associated with outsourcing your critical IT functions. What risks can IT outsourcing pose and how can you deal with them? There could be security risks, data related risks and sometimes, even financial risks. However, it is not outsourcing that must be blamed for these problems. Instead, IT outsourcing glitches and interruptions happen even if you keep your IT functions in-house. The key is to take necessary precautions before something undesirable happens. A lot of people have also wondered why there are so many software glitches these days, when there were very few initially. The answer to this question is as simple as that of why there are more people now than a hundred years ago. There is more number of people outsourcing ever more IT functions and non-IT functions are being computerized, increasing IT functions tremendously. Naturally, we hear of reports of software glitches and interruptions. Nevertheless, there are a number of things that you could do in order to reduce the number of software glitches. Here are a few: Ensure high IT quality and governance IT governance is a very important part of IT outsourcing. Even before you outsource your work, you need to have IT governance set in place. If you are not able to write your own IT policies, speak to an agency that specializes in IT governance. IT governance involves policies and rules about how best to handle a company’s IT functions. Automate software development Software development can be automated, if you choose to invest in the right tools. There are a number of tasks that do not need manual coding. A computer will be able to do a lot of things that earlier required an IT developer. Software development can be undertaken by automated systems in order to reduce costs and also to make sure that human errors are ruled out. Automate software testing Software testing can be done using simulators. While manual testing is required, it is always good to run software programs on simulators as well. These are quick and effective methods to make sure that your software program is running the way it should. Instead of spending a lot of money on manual testing, you could outsource it to an organization that is equipped with superior simulators. Focus on IT governance IT governance must be given special focus and policies need to be updated time and again. The level and complexity of IT governance should depend on existing laws related to security and data as well. It is mandatory to consult specialists before writing IT policies for one’s own company. With an effective IT governance in place, glitches and interruptions can be avoided mostly. Increase the levels of IT security There is a lot of attention given to IT security lately. IT security needs to be understood from a number of perspectives. The country where your outsourcing partners are located might have excellent security systems in place. However, they might come under attack from third parties. Make sure that your outsourcing partners have good encryption systems. It is important to make sure that IT security is given the importance that it deserves. A lot of thought and deliberation must go into IT governance and IT outsourcing. It is not recommended to go ahead with IT outsourcing and just forget about it. There are a number of things that you as a client can do in order to make sure that your outsourcing partners are doing what needs to be done to stop interruptions and glitches. Always remember to speak to your partners before you sign agreements related to IT outsourcing. A little planning and a few questions can take you a long way in ensuring that your IT and data remain safe & secure. With so many threats in place today, it is always better to be careful; and that requires a little work from you before outsourcing your IT functions to an agency.