Increasingly companies are investigating how to decrease their costs by moving operations to India. At the same time, companies would like to bring their products to the 1B+ people in India of which 450M are in the growing middle class. How? 'India is worth pursuing and yet it is not easy,' says Boli Medappa, principal of India360 (www.india-360.com), a consultancy that helps firms successfully do business with India. Boli, a seasoned executive with extensive experience creating and managing businesses in India, the US and Europe, shared her wisdom on Wednesday May 21, 2008 with a group of Boulder, CO business people who graduated from top MBA schools.
There is great opportunity in India and that is why over 125 of the Fortune 500 firms are operating in India. The top biotech, pharmaceutical, telecom, and information technology firms from Oracle to GE to Merck have operations. Should your firm be there too? Perhaps, but don't try to go on your own. There are many challenges in operating in India including: lack of infrastructure -- not enough power, roads, or airports, political instability, corruption, regulation, and more.
Here are Boli's Seven Steps to Successfully Doing Business in India:
1. Conduct intensive due diligence.
2. Influence regulatory change.
3. Choose your states wisely.
4. Manage corruption. Say NO and make sure your choose partners who will do likewise.
5. Understand the antiquated labor laws.
6. Opt for neutral country arbitration.
7. Engage qualified lawyers, accountants, and consultants.
Even though I have extensive global experience having previously managed an AT&T International division offering customer premises equipment in dozens of countries, I recommend you get sage advice so that the value proposition will more likely be sustainable. Here's what I learned -- contact Boli!
by Theresa M. Szczurek (www.TMSworld.com)