Questions

An offshore development center in India I've been working closely with for four years is wanting to place developers with NA clients. The client would manage the developer directly or could contract a PM if needed. The developer will reside in the ODC under HR supervision. And, the client would have a U.S. counterpart (partner) to board and service the client. I am considering being that partner or introducing a partner to the ODC client. I have a pretty good idea of the pros/cons, but would love feedback from the community. One other component, the ODC can make arrangements for the Indian developer to reside at the clients location for up to six months under a work visa.

I am an American and I own and directly manage an India-based development center since 2011. We have provided both on and offshore labor from India to American client companies, so have direct experience with what you are asking about.

This is a tricky arrangement, but one that can pay off in certain circumstances. With the current uncertainty around work visas, everything we knew before has to be reconsidered. That is the first challenge; understanding that new US government policies could negatively impact your business model. Aside from that, the obstacle is in finding the value and preserving that for your client to see. When all the costs settle, the outplacement model really only works well for the larger players who dominate this service sector. I'm not sure how many placements you have, but I think you'd need at least 25-50, growing at least 1-2 new placements per month, to see this as a profitable model. If you can't place this many, you may want to examine the costs and potential revenues again and stick with standard outsourcing. If your clients really want these services, you could also invest some of your funds into enhanced presence off-shoring techniques.

If you want to discuss this further, let's setup a 15 minute call to discuss.


Answered 2 years ago

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