Working in India Dr. Wolfgang Messner Roundtable Internationalization BICCNet Munich, 18th January 2011
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Working in India Dr. Wolfgang Messner Roundtable Internationalization BICCNet Munich, 18th January 2011
India opened its economy in 1991; my experience working and living on the subcontinent started just four years afterwards Dr. Wolfgang Messner Deutsche Bank 1995: first projects with Indian software engineers 1998: Expatriate assignment as program manager to India since 2002 married to Pratibha Capgemini India Head of exposure and Offshore experience Delivery DACH 2007-09 Expat assignment 2005/06 as delivery director Visiting Faculty at IIM-B Copyright © 2011 Dr. Wolfgang Messner. All rights reserved. MESSNER_WORKING IN INDIA 180111.PPTX 2
In India, the IT and BPO services industry contributes 5.5% to the GDP; export to Continental Europe has a share of 12% Major IT and BPO locations in India Tier-I cities • Bangalore • Kolkata • Chennai • New Delhi NCR (+ Noida, Gurgaon) • Hyderabad • Mumbai (+ Navi Mumbai) New Delhi NCR Big Northern Triangle Kolkata IT/BPO exports from India Entire market size: USD 49.7b (FY 2010) Mumbai Hyderabad APAC Rest of World Continental Small Europe 7% Southern Triangle 12% 2% Bangalore Chennai 18% 61% UK USA Copyright © 2011 Dr. Wolfgang Messner. All rights reserved. MESSNER_WORKING IN INDIA 180111.PPTX 3
Workplaces are organized in an open space concept with individual cabins for higher-ranking employees Copyright © 2011 Dr. Wolfgang Messner. All rights reserved. 4 MESSNER_WORKING IN INDIA 180111.PPTX
The size of the industry offers possibilities to industrialize offshore IT delivery thereby going beyond factor cost savings Offshoring and Industrialization Professional Offshore Delivery • Delivery excellence through quality control • Lean delivery • Domain experience through • Efficiency increase training, projects, and • Quality increase customer intimacy Offshore • Intercultural awareness Industrialized IT Factory • Governance of development process along assembly line • Factor cost reduction (in-built quality) Industria- • Better availability of • Pre-fabrication, re-use, lization resources and common tools & templates • Specialized resources • At every step, best input leads to best output, and best end product One could theoretically reap benefits through industrializing IT delivery in the Western world as well. However, only the project and resource concentration in India creates the necessary leverages. Copyright © 2011 Dr. Wolfgang Messner. All rights reserved. 5 MESSNER_WORKING IN INDIA 180111.PPTX
India‟s IT industry has grown by a factor of 10 within the past ten years and is projected to grow further to 10m employees by 2020 IT industry growth and challenges Supply vs. demand Corporate training shortfall centers Employees (thousand) Stress on the education system 2,500 2,500 “Scrape the barrel 2,286 a little deeper” 2,196 Fast-track Career disalignment 2,010 2,000 promotions and India vs. West salary hikes Software 1,621 993 958 (export) Quality frameworks 860 1,500 Scarcity of and certifications 1,293 experienced 690 middle managers 1,058 1,000 513 BPO 830 768 (export) 390 738 670 700 296 553 522 205 415 500 430 316 284 170 180 216 230 162 Domestic 190 106 500 525 market 70 352 365 378 450 246 285 318 198 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Financial Data: Nasscom Analysis estd. Year Copyright © 2011 Dr. Wolfgang Messner. All rights reserved. 6 MESSNER_WORKING IN INDIA 180111.PPTX
The rising importance of India in the global world creates a feeling of „new worth‟ within India – and is nurtured through campaigns Times of India commercial with Amitabh Bhachan The New India • Pulsating dynamic new India • Buys out foreign companies • History is turning a page • It’s time to fly! Copyright © 2011 Dr. Wolfgang Messner. All rights reserved. MESSNER_WORKING IN INDIA 180111.PPTX 7
When working across borders, culture seems to be the most neglected source of challenge; but differences are real and felt Cultural perceptions What Germans think about Indians What Indians think about Germans • Polite, indirect • Quality-oriented • ‘No’ is difficult; always say ‘Yes’ • Cold, aggressive, brutally direct • Unreliable • Serious, no sense of humor • Dependent on others • Reliable, punctual • Not open to problems • Perfectionists, dedicated to work • Passive, need clear instructions • Work-life balance (vacation) Source: Intercultural trainings conducted by Wolfgang Messner Copyright © 2011 Dr. Wolfgang Messner. All rights reserved. 8 MESSNER_WORKING IN INDIA 180111.PPTX
These differences are driven by values and attitudes; they are invisible at first glance, but impact the work style the most Comparison of Indian and German Values Collectivistic Individualistic people-oriented society task-oriented society • Family • Punctuality • Hospitality • Orderliness • Spirituality • Quality • Respect for Elders • Individuality • Dependability • Education Indian values German values Only when we are fully aware of our differences, we can develop synergies and work together to a successful cross- cultural relationship. Copyright © 2011 Dr. Wolfgang Messner. All rights reserved. MESSNER_WORKING IN INDIA 180111.PPTX 9
In order to successfully work in India, first and foremost, it is important to consider both the Indian as well as the home culture as equal Qualities Required for Working in India Competences Components of intercultural competences • Non-ethnocentrism. Does not consider own culture to be superior Affective competences to others • Open-mindedness. Open towards new ideas and experiences • Empathy. Able to put him/herself in others‘ places and to share their emotions • Cultural awareness. Knows that behaviour is culture-bound and Cognitive competences may differ from person to person • Self-awareness. Knows him/herself well, propensity towards introspection • Self-confidence. Is not shy or insecure • Realistic expectations. Has realistic, detailed expectations of the host country and its inhabitants • Motivation for success. Has a strong orientation towards pragmatism and useful action • Tolerance for ambiguity. Able to handle uncertain and contradictory Behavioral competences situations • Communication skills. Able to communicate skilfully in the host language • Respect. Appreciates and tolerates his/her counterparts Source: Gelbrich K (2004) The Relationship between Intercultural Competence and Expatriate Success. Die Unternehmung, Vol 3/4 (58) Copyright © 2011 Dr. Wolfgang Messner. All rights reserved. MESSNER_WORKING IN INDIA 180111.PPTX 10
Thank you for your attention! Dr. Wolfgang Messner Principal Head of Offshore Delivery Capgemini Deutschland GmbH Carl-Wery-Str. 42 D-81739 München / Germany Phone: +49 151 4025 0875 Fax: +49 69 9515 2518 E-Mail: wolfgang.messner@capgemini.com wolfgang.messner@gmail.com www.wolfgangmessner.com Dr. Wolfgang Messner, 10 Elm Bank Mansions, The Terrace, Barnes, London – SW13 0NS, U.K. Copyright © 2011 Dr. Wolfgang Messner. Email: wolfgang.messner@gmail.com All rights reserved.
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