Startup closes India R&D Office
Riya decides to close their Bangalore R&D office and consolidate engineering in Silicon Valley. India was getting to be too expensive to deal with the hassles:
Coverage in InfoWorld:
http://www.infoworld.com/infoworld/article/07/05/29/riya-wage-inflation-sinks_1.html
CEO’s blog discussing the decision:
http://munjal.typepad.com/recognizing_deven/2007/04/episode_26_indi.html
One of my clients has been outsourcing a large software development effort to an Indian team. The time zone differences, experience level of the staff, and turnover have been a big drag on productivity.
May 29th, 2007 at 10:31 pm
[…] Chris Maeda » Blog Archive » Startup closes India R&D Office “One of my clients has been outsourcing a large software development effort to an Indian team. The time zone differences, experience level of the staff, and turnover have been a big drag on productivity.” - heard this a few times in the past few weeks (tags: India outsourcing R&D timezone) […]
June 3rd, 2007 at 3:24 am
Does Lou “Mr. Outsourcing America” Dobbs of CNNfn know about this? Oh yeah, let us not forget that old boy Lou quit his job at CNN back in the 1990s because he thought the swagger to join a “dot com” when “dot com” was in vogue. When Space.com didn’t make Mr. Dobbs a multi millionaire, he went back to CNN with his tail between his legs asking for his old job back again. Now all he does is create cacophony as he incessantly sensationalizes topics such as outsourcing (if he doesn’t sensationalize then he will once again be out of a job). ’nuff said!
June 3rd, 2007 at 3:26 am
errata:
because he thought he had the swagger to join a “dot com”
July 18th, 2007 at 12:39 pm
It has been my experience that few companies are ever really happy with their outsourcing solutions.
Rumor has it that there is a lone company out there which fully documents their specifications to such a fine level of detail that they just email it to India and it comes back better, faster and cheaper.
However, the for the rest of the companies, the communication lag and the lack of business understanding makes even simple tasks like web page creation become cumbersome.