Whereas it was a must until a year ago, offshoring developments to India has generated enough of its fair share of operational issues to make startup teams and VCs much more cautious. Beyond local issues – like the difficulty of hiring and keeping talent, and increasing wages – getting the coordination, leadership and motivation aspects are challenging.
Ed Sim’s post comes a propos as he relates to a successful offshoring operated by one of his companies. Some key points:
- Offshore interesting and motivating projects
- Develop local leadership talent
- Hire, train and manage local staff with a long term view in mind
At the same time, SAP is going to be looking to alternatives to India because of rising costs.