François pecher input for you - ict symposium 2010

Case StudyCase Study

Cultural and organizational aspects of collaboration with India

By François Pecher

Cultural and organizational aspects of collaboration with India

By François Pecher

Thanks !!Thanks !!

Many thanks to

CEFORA

to give us the word during this

ICT SYMPOSIUM 2010

Many thanks to

CEFORA

to give us the word during this

ICT SYMPOSIUM 2010

Input For YouInput For You

IFY in Letters and Numbers

Chaussée de Gand 1434, B-1082 Brussels

WWW.inputforyou.be

Created by François Pecher and Philippe Moortgat in 2006

CEO, Bernard Coppens

Activity, Bulk scanning, document indexing.

Man power, +/- 100 in Belgium and +/-100 in India

Daily scanning capacity, +/- 400.000 pages

Important customers, UZ Leuven, BNP Fortis, GZA, UZ VUB…..

Outsourced activities to India, Indexation, Scanning, Software development, IT platform maintenance.

http://www.inputforyou.be/

Brief HistoryBrief History

1998 First visit to India

1999 First joined Venture (B.I. Europe)

2002 Closing of B.I. Europe

2003 First scanning job (P&P consultants)

2005 Creation of Input For You

2006 New joined venture in India

2007 Preliminary study on outsourcing ICT

2008 Platform maintenance outsourced

2009 Software development outsourced

2010 FIRST EVALUATION

India in NumbersIndia in Numbers

1990 2002 2004 2006

Population (Mil) 846 1055 1090 1122

Universities 184 261 304 407Professional Colleges 886 2340 2751 3201General Education colleges

4862 8361 9427 10377

Per Capita Income in €At 2000 prices

212 301 437 560

Source : TATA, Statistical Outline of India 2007-2008 Central Statistical Organization India

Indian IT services industry


In US $ bn. Industry Size

Export Market

Domestic

Market

2000 12.2 6.2 6.0

2001 13.4 7.6 5.8

2002 16.1 9.9 6.2

2003 21.6 13.3 8.3

2004 28.3 18.3 10.0

2005 37.4 24.2 13.2

2006 47.8 31.9 15.9

X 4.0 X 5.2 X 2.5

Source : TATA, Statistical Outline of India 2007-2008



In US $ bn. OnsiteServices

Offshore

Services

Total

2000-01 3.5 2.7 6.2

2001-02 3.4 4.2 7.6

2002-03 4.3 5.6 9.9

2003-04 4.8 8.5 13.3

2004-05 5.4 12.7 17.9

2005-06 6.9 17.0 23.9

X 2.0 X 6.2 X 4.0


Indian IT manpowerKnowledge Professionals

Employees

Indian IT manpowerKnowledge Professionals

Employees

X 1000 2003-04

2004-05

2005-06

2006-07

Software Export Sector

296 390 513 707

Software captive in user organization

318 352 365 378

IT enable services

216 316 415 545

Total 830 1058 1293 1630


Indian IT manpowerNew Entrants

Indian IT manpowerNew Entrants

X 1000 2003-04

2004-05

2005-06

2006-07

IT Graduates 55 58 64 68IT Diplomas 25 36 39 41Sub-Total 80 94 103 109Growth 15% 9% 6%Engineering Graduates

40 40 40 40

Non-Engineering Graduates

30 30 30 30

Growth 0% 0% 0%

Total 150 164 173 180Growth 9% 6% 4%


Indian IT services destination

Indian IT services destination

US $ Mn. % Share to total

America 12,107 67.4

Canada 159 0.9

USA 11,769 66.5

Europe 4,093 23.1

UK 2.478 14.0

Germany 400 2.3

Netherlands 250 1.4


Historical backgroundHistorical background

India, Colony of the UK for more than 2 centuries

Same legal system as in Britain.

Same organizational system. (railways, train, measurement)

English, national language in all India

Same educational system

Member of the commonwealth

Facilitated peoples exchange (UK and US)

Cultural BarriersCultural Barriers

Lack of knowledge between CEU and Indian peoples.

Languages

Market size

Access to countries

Enterprise culture

Religion

Food

Differences in enterprise culture

Differences in enterprise culture

In India, more hierarchical levels.

Indian Pyramid against European flat structure.

Size of enterprises completely different.

Productivity, +/- 2 for 1 against European companies.

Lack of capitalization in small enterprises.

Work conditions.

Work infrastructure.

Understanding of each other!!

Understanding of EU businesses.

What is needed on our sideWhat is needed on our side

Offshore project leaders

Strong analysts

Team leaders

Perfect understanding and speaking of English.

Opening to different culture.

Time to build associations, ventures, business.

Peoples ready to travel and work out of normal scheduled time.

ConclusionsConclusions

It takes more time than expected.

Expectation not always at meeting point.

Great experience.

Still a lot to be developed in this sector.

Challenging.

Nice country and nice people to meet.

Thanks