March 7, 2007

Challenges of operating alone in India

Reversing the BOT (Build operate and Transfer) model. For the longest time Indian companies offered companies to kick start their operations in india, and after three years the same company could buy the team over and run wit the ball. I don't know if this is a trend, but lately the same Companies who used the BOT model or started on their own are realizing than unless they reach a minimum of three digits the challenges of running a business in India are enormous. The numbers of companies starting their own captive centers is stable, ie not growing anywhere near growth rate in the outsourcing business. Now we're seeing companies with actual centers in India divesting of them to have a specialist manage them. The market in India is so hot that running a business there is nothing like any north american companies is prepared for.

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