09
Mar
10

The offshore model


Much of Indian software companies thrive on software exports and outsourcing. The concept of the offshore model was first fully implemented by the much tainted figure of Satyam Computers’ founder, B. Ramalinga Raju.

In 1987, he founded Satyam Computer along with his brother B. Rama Raju and brother-in-law D.V.S. Raju, taking the company public four years later. That year, he won his first offshore contract from U.S. tractor maker John Deere & Co.

The Hyderabad-based start-up had signed up its first major offshore customer in June 1991, applied to VSNL for a dedicated satellite link in August that year. Using this link, Satyam wanted to execute a re-engineering contract, worth $1 million, for John Deere by remotely working on Deere’s IBM mainframes located in Chicago

For proof of concept, Satyam rented a house across the street from the development centre of its first Fortune 500 customer and named it Little India. Staffed by 10 pioneering engineers, Little India connected to John Deere through a 64 kbps satellite link. The engineers weren’t allowed direct interaction with their customers, and they worked only at night to simulate the way offshore engineers would do their jobs.

The project was implemented successfully. John Deere executives were also convinced, and the global delivery model was born – a model that created significant performance and cost benefits.

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So what’s this blog about?

Another attempt? Well yes. Attempting to figure out another sustainable model (there are some other attempts going on parallel-ly). Well, we have a lot of questions in mind. we read up stuff, we do some research to find answers to these questions. This is an attempt to publish that little 15-20 minute research.

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