Recently we were talking with an American client about an upcoming trip to India to evaluate outsourcing vendors.  They are experienced managers, who have evaluated a number of vendors for different kinds of services for their business, and they have a well thought-out vendor evaluation process.  But they’ve never outsourced work to India, and none of them had ever visited India.  Alarm bells started going off in our heads.

We had two major concerns.  The first is simply managing the travel in India.  American and European business travelers are often challenged by the double whammy of a very different culture and an underdeveloped infrastructure.  The outsourcing industry is rife with tales of prospective clients who got off the plane in Mumbai or New Delhi and then turned around, without ever making it to the vendor campus, so much so that most vendors make sure that first-time visitors are met at the airport and are provided some kind of travel support, if not actually escorted to the vendor site.  A global outsourcing sales exec told me “I would never let a client travel to India on their own for the first time!”  Beyond the initial culture shock, there are any number of relatively small issues – canceled domestic flights, missed car pick-ups, phone problems, monsoon-related road closings – that are hard to navigate in India, and can result in travelers losing whole days carefully planned business agendas.

The second challenge is more subtle, but of more importance when you are considering potential long-term vendors, and that is being able to evaluate vendors across the cultural differences.   Americans with limited outsourcing experience can easily mis-read what they are seeing.  Once visitors get past the views of roadside poverty, they may be so dazzled by a gleaming new campus that they will not question other aspects as thoroughly as they should.  Or they may misinterpret elements: they may not realize that a beautiful building in the suburbs means employees will spend hours commuting on company buses (car ownership is still quite low in India), and a more dingy-looking city building may be a better choice for certain kinds of work.  They may be put off by the poor accent or shy presentation of one manager, and not be able to properly appreciate the level of expertise or client service skills.  On the other hand, they may be overwhelmed by cultural differences and overlook clues that indicate issues that will come back to haunt them later on.   Western clients often focus questions on electricity and internet back-up, which virtually all reputable vendors have covered, and then neglect to ask for a more detailed review of employees’ education levels, which is a much harder area for foreigners to evaluate and can have a big impact on service quality. And so forth.

If you are an outsourcing buyer, and have stories about what you wish you had done differently in your vendor due diligence site visits, I would love to hear them.   Please email me directly.

The layout on the first page of today’s business section in the New York Times creates a powerful meta-message. The first article, As Wall Street Stumbles…, is about how major banking firms in the U.S. are sending key employees to international markets they see as growth opportunities. The second article, …India’s Role is Growing, is about the growth in outsourcing jobs to India, particularly for middle office banking jobs.  The two articles are clearly linked, making the point that the US banking crisis is spurring greater attention to international opportunities, both to grow top line revenue and reduce costs.

I think this is the hallmark of globalization at this time, that it is not just about selling into international markets, and not just about outsourcing operations to lower cost regions, but both, which creates, even demands, new ways of organizing businesses.   Multi-national companies with a typical “country manager” model, where each country operates as its own business, reporting to central headquarters, cannot capture the opportunities for global economies of scale in their operations.  But when back office functions are centralized and outsourced to reduce costs, companies may see emerging economies simply as low cost regions, and miss growing market opportunities.  We need new network structures that are able to leverage low cost operations and capitalize on new markets, crisscrossing functions and product offerings across geographies.  We’re just beginning to see this kind of structure in a few global companies – GE, Lenovo, Coke, Fidelity – come to mind.  While promising, it places new demands on employees and managers to learn how to work effectively in a challenging and changing global structure.

I’ve been a fan of Sandeep Sood’s wickedly funny comic “Doubtsourcing” for some years now. (He seems to be taking a breather right now, writing about big B’s campaign, but that’s another story…)

Yesterday his newsletter pointed me to an excellent short – and humorous – article in Forbes about outsourcing to India. If you work with people in other parts of the world, especially India, and you haven’t seen it yet, I urge you to check it out. Working from an anecdote about an all-too-common miscommunication with his virtual assistant, he draws some broad lessons on what it takes to make outsourcing to another country work.

Perhaps most significantly, Sandeep Sood refers several times to “global collaboration,” and not once to “offshoring.” I think it’s that mindset, the recognition that what you’re really doing is working with people in another country and culture, not sending work out, that underlies almost all successful global projects. Add to that basic understanding some detailed planning, a lot of structure, good virtual communication tools, and a large dollop of patience, humor and respect, and you can get some great results…and maybe even have fun in the process.

In addition to his commentary, there is a slide show on ten tips for outsourcing. These do not include the usual advice on contract negotiations and performance metrics! Last I checked, the link to one of them is not functioning, but you can get to the rest of the slides by manually tweaking the URL. They’re worth it.

What to eat & not eat:

The main rule is to not drink the water – drink only bottled water, or sealed beverages (like sodas or juices in bottles), or hot tea or coffee. This also means insisting on “no ice” whenever you are served a beverage. Keep a bottle of water by the sink in your hotel room, to remind yourself to use it when you brush your teeth. Most businesses have bottled water in the offices – just ask.

Other guidelines for a healthy trip are to: avoid raw or undercooked foods, especially meat, seafood and dairy products; avoid street food – it’s often safe, but why take the chance on a short trip; and eat foods that are well-cooked and hot to the touch. In general, it’s best to eat only those fruits and vegetables that can peel yourself. In the hotels business travelers usually stay at, most travelers have no problems eating fresh fruit and vegetables; they have been washed with filtered water and carefully prepared.

Note that the majority of Indians are Hindus, and most Hindus are vegetarians to some degree or another. Everywhere you go, you will see restaurants advertising either “pure veg” or “veg and non-veg,” which refer to all vegetarian, or vegetarian and non-vegetarian options, respectively.

Money:

You are not likely to need more than $100 in cash, unless you are planning to extend your trip significantly or plan to do lots of shopping. Although the usual travel advice is to not change money in the hotels, because the exchange rate isn’t very good, many business travelers do recommend changing money in the hotel in India. With the exchange rate at about 40 rupees per $1, even $100 can give you a big wad of bills (generally, you’ll need small bills for things that require cash). Counting that many bills in an unfamiliar currency, at the end of a long plane flight, can make changing money in the airport a challenge. For less than $100 or so in cash, the difference in exchange rates may not be significant. Wherever you change money, you are likely to get your small bills stapled together – ask them to remove the staple for you, because it’s difficult to take out with your finger and ripped bills are often refused by merchants.

If you are thinking about making a big purchase (such as a rug), and may need to pay for it in cash, consider bringing travelers checks with you for changing into rupees. New ATMs are opening up every day in major cities, but they don’t always work as expected. They can be out of cash, or limit you to a very small withdrawal, or to a specific number of bills. A few ATMs cannot process a PIN with more than 4 digits, or may not be able to access a U.S.-based account. You may want to bring an ATM card from another bank as a back-up.

Check with your credit card companies before you leave – most tack on a fee on international charges (which may not be itemized). Credit cards are accepted fairly widely in India, at least at the kinds of upscale hotels, restaurants and stores where you are likely to spend most of your money, and are usually the best payment system. Bring more than one type (e.g. MasterCard and Visa, or American Express), because many shops and restaurants will only accept one type or another, not all of them.

Bathrooms:

Bathrooms in upscale hotels, restaurants, stores and most business offices all have western-style toilets. Outside of those places used to international travelers, public bathrooms are quite rare, and if you do find them, they are more likely to be the squat-type toilets, and toilet paper is not usually provided. Forewarned is forearmed!

Head movements:

Indians tilt their heads and nod back and forth to indicate “no problem,” “okay,” or “whatever.” This is often done without much facial movement or smiles, and it is easy for Americans to think they are shaking their head and indicating “no.” You’ll get used to this quickly, and probably find yourself tilting your own head in a few days. In the meantime, if you have any doubt, ask the question or state what you want again, until you hear a firm “no problem” or “okay.”

Tipping:

Tipping follows different rules in India than in the U.S., but many of the service people you encounter will expect you to tip more in line with American culture, especially at high-end hotels. If you are with an Indian colleague, ask for his/her advice. I’ve asked a lot of people about tipping, and there is a wide variation in views on appropriate tipping levels, so here are some very rough guidelines about tips:

• In general, it’s better to tip as you go, not to save up until the end of your trip. You will get better service during your stay.
• Check to see whether service is included in your restaurant bills at hotels. If it is, a very small cash tip is always appreciated, but not necessary. If it’s not, you can just write in a tip of about 10% when you sign for food bills. You may also leave this as cash – it’s just harder to remember come expense time.
• People who handle your luggage should get somewhere around 20-40 rupees per bag, more if they’re gigantic.
• Give the guy who calls your car in the morning a small amount – 20-40 rupees – preferably each time.
• In business class hotels, leave about 30-50 rupees in your room for your cleaner every day.
• People who bring up laundry or food or whatever expect a small tip, perhaps 20 rupees.
• People I’ve surveyed about tips for car service drivers have really varied opinions – from 50–100 rupees per day; to one big tip (200–500 rupees) at the end of your stay; to varying tips depending on their day (less if they hung out all day at the office campus, more if they’ve taken you all over town a few times or are doing a long trip to/from another city).
• Tips for bathroom attendants/cleaners are really not required, but some attendants will try to insist on a tip, especially from foreigners. This can be annoying; it helps to remember how poor these attendants usually are, and give them a couple of coins along with a smile.

Shopping:

Things people often shop for in India include: gold and silver jewelry, pearls (especially in Hyderabad), textiles and clothing, and many kinds of crafts, such as inlaid wooden bowls or small stone or paper maché decorative items, and rugs. Ask your hosts to arrange for a shopping trip for the things you’re particularly interested in. Bargaining at most shops is an expected social interaction and part of the shopping experience – ask for advice before you get going or ask your Indian friends to bargain for you. There’s a fine line for Americans – you don’t want merchants to think they can rip you off, but you can also afford to pay more than the local standards and still have a great souvenir or gift at an excellent price. Try to find the right balance – you can tell if you are bargaining too hard when the merchant’s expression gets really sour; if he or she gives you a really big smile when you’re done, you probably should have tried for a bigger discount! You can also buy things at the fixed price stores in the hotel (for a premium).

Last word:

Have fun! Although you are traveling for business, that doesn’t mean your trip has to be ALL business. Enjoy the experience, get out and go shopping or visit some of the local attractions. If you are going for 2 weeks or more, schedule a trip or two to some other part of India over the weekends.

What to expect when you arrive in India:

For many American travelers, the hardest part of a trip to India is the time from when you leave the airplane and arrive in your hotel. You will likely step off the plane feeling groggy and tired, but it’s important to keep your wits about you at this time. Many Indian airports are out-dated, and signage is often less than clear (at least to Americans). Follow the signs and your fellow passengers as best you can. You’ll need to take your immigration forms (hopefully you filled these out already on the plane) and go through immigration, then pick up your luggage, go through customs with your bags (female travelers should go through the regular line and ignore any “Ladies and Children” section), and then find your way out to the exit. If you are okay with carrying your own bags, you can (and should) ignore anyone trying to get you to hand them over so they can carry them for you – they will ask you for $5-10 to hand them back to you, an exorbitant amount by Indian standards. You can also change money here (see note below about money), or get a taxi (if a car service is not picking you up, it’s best to arrange the taxi from a service office inside of the airport).

When you step outdoors, be prepared for a blast of hot, humid tropical air (even though it’s usually the middle of the night), and throngs of people waiting just beyond the exit. If you are getting picked up by a car service, walk out slowly, looking for the person holding a sign with your name on it and then follow them to a waiting car. Be prepared for alternative spellings of your name. If you are staying in one of the international hotel chains (Hyatt, Hilton/Trident, Le Meridien/Starwood, etc.), you will soon find yourself in a luxuriously appointed hotel aimed at an international clientele. Enjoy!

Begging:

Coming out of the airport and walking to your car, you will likely have your first encounter with children (and sometimes adults) begging you for money. There are lots of different views about this, and how you respond is up to you. The most common advice is that you do not give any money, just smile, say “sorry” and keep going. Keep in mind that if you give money to one child, you are likely to be quickly surrounded by a dozen children all pulling at your clothing and trying to get your attention, which can be overwhelming. Your car may also be followed through the city, and you may find yourself surrounded again at your next stop. If you do decide to give money or small treats to people begging, do it carefully – just before leaving someplace, or from your car window when the light is about to change.

Travel within India:

If you are traveling to multiple cities in India, it’s best to travel with colleagues and to arrange your route in advance. Domestic flights are typically small planes with frequently changing routes, and getting stranded by yourself is usually not much fun. You will also need to arrange for taxis, or more typically, a car service that provides both car and driver. The challenges of driving in India are many, and drivers are not only take you where you need to go (while you work or sleep), they can also be a great source of information and take care of various errands while you are working. There are also a few modern highways in India now, so if you are traveling between Mumbai and Pune, for example, you may want to drive (not yourself, but with a car and driver).

• Traveling by car has some advantages: you can see some of the countryside, it’s usually less expensive than flying if you are going with another colleague, and you can go just about any time you’d like. (Some experienced travelers will drive from the airport in the middle of the night, right after they arrive in India.) On the other hand, rest stops with western-style bathrooms are not that common (obviously somewhat more of a problem for women), and you are dependent on your individual driver to stay awake (especially a challenge in the middle of the night) and to find their way.
• Traveling by plane is usually faster, but adding in the driving time to/from the airport, security and luggage handling, etc. can change the equation. Pros: you may save some time over driving, you’re never far from a bathroom, you’re in the hands of an airline company vs. an individual car driver. Cons: it’s more expensive, there are often only a couple flights per day, and you don’t get to see much scenery along the way.

During monsoon season, ask your Indian colleagues for advice. Roads are often slowed way down or closed because of flooding and flying may be the better choice.

What your days will be like:

Perhaps the most important thing to understand before you go is that your Indian hosts will almost surely help you navigate between offices, hotel, restaurants and shopping. They have probably hosted many American business travelers before, are aware of the challenges for first-time visitors, and you will probably not have to negotiate logistics or Indian culture any more than you wish. On the other hand, you may choose to engage with the local culture to a greater degree, taking a walk along the city streets, doing some sightseeing, shopping, etc. or even using your business trip as a springboard for vacation excursions to other parts of India.

If you are going to visit any of the major IT companies, you will probably stay in a hotel in the center of the city (whether it’s Bangalore, Hyderabad, Pune, Chennai or others), and will need to take a car out to the company’s campus, usually set at the perimeter of the city. Ask your driver how long the trip will be (one or two hours is not unusual, especially with the traffic in Bangalore!), and bring along a snack, visit the restroom and charge up your laptop before you go, so that you can be comfortable and productive. Don’t be alarmed when your driver goes through the city and out into the countryside along small roads, through herds of goats and past occasional cows. When you reach the campus, you’ll go through a guard checkpoint, and then will be directed to a main reception area. Introduce yourself and ask for your contact. You may have coffee and lunch brought to your meeting, or you may go to the canteen for lunch. These typically serve simple Indian fare, with a few entrees, both vegetarian and meat, as well as rice, bread and a sweet. Usually there are also cafés here and there where you can buy some snacks or drinks at other times, too. All of the food, though, is likely to be prepared for Indian tastes, even if it looks like an American sandwich, so you may wish to bring a couple of your own snacks if you really don’t enjoy Indian food.

At the end of the day, your hosts will ensure that you connect with your driver for the return trip to the hotel. Typically, your hosts or colleagues will have arranged for a group dinner at a local restaurant, and will make sure that you have transportation, too. You canalso eat dinner at a hotel restaurant, or make a foray into the surrounding area for dinner. Ask your colleagues and the hotel staff for advice; the hotel staff will often call a cab (or a rickshaw, if you’re feeling adventurous), give directions and negotiate the fare in advance.

Hotel breakfasts are usually buffet style, with a wide assortment of pastries, eggs, fruit, and some Indian specialties. Waiters are thrilled to get a small tip, even though meals are typically charged to your room.

Next up – Part 3: Practical Tips