By Sela Technology Solutions Ben Butbega: Ben@Sela.co.il www.selagroup.com
Sela Group • More than 2 decades of providing technological solutions to the Israeli and the global IT market. Sela India: • More than 7 years of operations in India. • Providing a complete spectrum of services for building and running ODC’s in India. • Located in Pune with more than 130 employees.
In the next slides we will try to understand what are few of the challenges in setting up an ODC in India and the different approaches for doing that. If you would like to set up your delivery center in India (for testing, support, implementation, product development.. ), what do you need? The needs will vary form one center to another depends on the nature of the work that needs to be done at the center.
Which is the right city for my center? • Clients, Manpower, Infrastructure, Visits, Costs. Where in the city should I locate my office? • IT Park vs. Commercial facility. • Manpower, Competition, Visitor convenience. What is the size of operation we are looking for? • What is the size of the office ? • How to support expansion in Minimum Cost? What type of office should I rent/buy (Bare shell, fully furnished, ready made)? Rent Buy Business Center Security Deposit Litigations Cost Lock In FDI Investment Local Loans
Israeli focal point/Center Manager. • Bridging the gaps between the Israeli center and the Indian center. Operations Head. • Local manager with Israeli/European/American orientation. • Aligned with the organization spirit. HR Team. • Creating (or localizing) and implementing the company HR policies. • Creating and implementing various employees engagement programs (Picnics, dinners, birthdays, certifications….), Internal branding. • Processing employees salaries, welfare, leaves. • Entry and end exit formalities. Recruitment team. • Defining the JD’s for the required position, Calling and interviewing candidates. • External branding and hiring. • Coordinating with local recruitment companies. • The recruitment team must have the support of a technical person (TL/PM/dedicated technical person).
Accounting. • Company accounting (Vendors, Clients, Taxes, Transfer Pricing…). • Employees accounting (Salaries, Insurance, PF, Tax planning, reimbursement). • Coordination with the CA. Legal. • Setting up the company. • Localizing the employment agreement (Offer letter, Appointment letter, relieving letter, HR policies…). • Protecting the IP, Vendor agreements, Client agreements… Technical Training/Coaching coordinator. • Ongoing training is a must: soft skills, technical, product, the coordinator will consolidate the training needs and will find the right solution (vendor, internal, facility…) Admin/Travel. • Running the facility (Office Maintenance, Purchase, bill payment, Inventory..) • Arranging and coordinating all the travel needs (Visa, flight tickets, Hotel, local transport…). Front Desk. Office Boys/Security.
Excellent technical and communication skills of the work force, “Don’t compromise on your needs and expectations !” Bridging the cultural gap between the Israeli and Indian work force, “What works in Israel will not necessarily work in India”. High level of retention. Work flow design to smoothen the diversity of locations. Internal processes and policies to define the expectation and the company’s professional culture.
Once the operation is in place (or in parallel) you can set up your delivery units. Depending on your needs, your product and the company knowhow, the implementation will vary from one company to another. You should pay extra attention for localizing the work procedures, processes, communication methods and training needs. Ensure that the Israeli/International teams work together as one delivery unit, keep the communication channels cheap and easy, make sure you conduct frequent meetings, daily, weekly and monthly. Make sure the employees are aware of the larger picture and create the right career path, regular appraisal and motivational discussions; training are an important component in improving the team skills, productivity and retention.
The two main methods of building your center in India can be Captive or Outsourcing. There is no right and wrong, only what is right for your organization at this point of time. Usually captive centers will take longer to build and will require a larger investment. An offshoring partner can reduce the learning curve and the time for productivity, few of them will even bear the investment for longer contracts, but will take the control and visibility from you.
Selais offering a unique model that allows you to enjoy the best of both models, reducing the learning curve avoiding the initial investment while keeping the control and visibility.
India is running forward and opening the doors for great opportunities. Good Luck! Ben Butbega : • Ben@sela.co.il • www.selagroup.com