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Software Testing & QA Online Community  >  Detail: Lessons Learned about Starting a Development Group in India, Part 1



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Lessons Learned about Starting a Development Group in India, Part 1

By Peter Clark

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Summary: Several years ago, Peter Clark's company opened an offshore software development team when offshoring was booming. Everyone was doing it, and so would Peter's company, but the results were not so great. In the first installment of a three-part series, Peter explains what happened.


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Hear more about this topic in the StickyMinds SoundByte podcast interview with Peter Clark.

In 2005, our company decided to create a software development group in India. There were several motivations behind this decision: We wanted to be able to service the South-Asia market with our products, and we wanted to take advantage of lower development costs in India. By this time, our company had been in India for nine years working with a Calcutta-based company manufacturing our equipment. We sited our manufacturing facility in Bangalore. It grew like crazy over the next few years and became one of the dominant players in material handling in India. We then expanded this business to do mechanical and electrical engineering, for both the North American and Indian markets.

Now it was time to offshore software development. Our company set aggressive goals. We would hire a development lead and bring him to the United States for training with the existing software development group. He would then go back to India and hire five or six additional software developers.

A highly qualified individual from one of our competitors was identified and recruited. We brought him over to the U.S. for three months of training. He received the same training that new hires received: a stack of user and design documentation and an engineer who was assigned to mentor him. The trainee was then assigned some maintenance work to gain familiarity with the system. He also toured customer sites to see exactly what we do.

Training didn't go as smoothly as expected in the States. While some individuals helped him, others did not. The rest of the team was reluctant to give him the support he needed. They felt that he was there to learn how to do their job because he and other Indians would soon be replacing the States-side team. Unfortunately, the trainee was isolated and never really integrated into the remainder of the American team.

At the end of three months he went back to India. We set up a VPN connection from our engineering office in Bangalore to our offices in the U.S. Our newly trained correspondent began recruiting people for his team, most of whom were his former co-workers.

His team received their first major assignment when our German subsidiary received an order for a small system in the Middle East. The engineering group in Bangalore would develop this product, including the software portion. We decided to reduce the scope of our standard product to reduce project risk. A prototype system was installed in a facility in Bangalore, and testing commenced. Regular progress phone conferences were held, and equipment was configured and integrated.

About a year into the effort, the software team in the US needed help with a large backlog of work. I requested that two engineers be sent over from India for training. They were scheduled to be in the U.S. for three months, after which they would continue to work on U.S. projects when they returned to Bangalore.

When the first engineer arrived, I gave him a simple programming assignment to assess his skills. He had been working for our company for about ten months, which he had spent working on our product. I expected that a programmer should take no more than one week to complete the assignment and that an experienced programmer could complete it in a day. After two weeks, with no visible progress, I became concerned.

I sat the engineer down and talked to him. I found out that prior to working for my company, he had no computer programming experience. His background was in electrical engineering. After he was hired by our trained programming lead, he had spent all of his time reading books on programming in C++ and reading code. He had never written any code.

I called the project lead in India who told me that he had hired three experienced people and one trainee. The person I had in the US was one of the experienced people. At that point, I became extremely concerned.

I shifted gears with the person in the States and assigned him some QA work to do, which he excelled at. Then I cancelled the second person’s trip—he was the trainee. By the time the three months were up, all of the people remaining in India had left the company, including the team leader. The person returning to India was reassigned to the electrical engineering group. Eventually the prototype system in India was scrapped after it was discovered that it didn't work at all, and none of our staff could figure out how to fix it.

In the next installment, find out what lessons Peter's company learned from this experience and how it affected the company's second attempt at outsourcing to an offshore team.

In part two, Peter will explain what he did differently the second time.

Click Here to Read Lessons Learned About Starting a Development Group in India--Part 2.
Click Here to Read Lessons Learned About Starting a Development Group in India--Part 3.


About the Author
Peter Clark has twenty years of experience in industrial automation. He currently manages teams working in materials handling, especially baggagehandling systems. A regular columnist on StickyMinds.com, Peter can be reached at pclark@jerviswebb.com.

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Comment:    
by vasudha N 11/6/2007

Since offshoring s/w development was something new that you were trying, I do not understand why there wasnt a plan to work jointly (teams in the US and india) on the first few projects to ensure offshore team could take the entire respionsibility?

 
 
Comment:    
by mona das 10/26/2007

Peter - I have worked with many offshore teams (from a developing to well established team) in India & Singapore and I can say that your story goes against what I have seen/experienced. Yes, it wasn't an easy process to setup the team / process offshore. But members of offshore team in India or anywhere else, were not inexperienced in the domain they were hired for (like you have described).

I think for your organization, it failed because of the bad bad hiring process. Even with an engineering background, people do well in programming or testing, if they have right experience or skills for it, either it's in India or in US. ...Read On

Author's Response:
10/27/2007    
At the risk of giving away part of the next column - the problem wasn't that the India team lead hired people who lacked domain experience. Quite the opposite - he hired personnel who had domain experience but lacked the technical experience. Only one of the people he hired had any sort of prior computer programming experience. Instead, they had experience programming Programmable Logic Controllers (PLCs) using a rather esoteric programming language called "ladder logic". Look to my next column for more information on this topic.

 
 
Comment:    
by Surekha M 10/26/2007

Peter, That was an interesting article!

"Right" team and good working environment, seem to be some important parameters for success. Challenge lies in getting such an ideal team in time - with members who own what they do, who have interests/intentions aligned to the business need of the organization, and who feel accountable for what they do!

Working conditions is yet another aspect that includes, in this case, a healthy environment, ensuring effective training, minimizing or helping get over culture differences etc.

Looking forward for the next installment of the article.

-Surekha.

Author's Response:
10/27/2007    
I couldn't agree with you more. Please see my future columns for more on this topic.

 
 
Comment:    
by Anuj Malik 10/25/2007

This looks like nothing more than a flawed hiring process, where people at your organization failed to match the opportunities at hand to the resources that would be required to get the work done. Though not sure how the person excelled at doing QA work, if he is not from this domain. From what i understand, after being in the industry for close to 5 years and in the QA domain for the same duration, you need to have a lot of skill to get the QA work done. Curious to know what you make of it though.

Author's Response:
10/27/2007    
I agree with you whole heartedly. I will discuss the hiring process used for the original team in future columns, along with what we did to address this gap.

Regarding how this person was able to do Q/A work - the test plan, test cases and test scripts were developed by my full-time Q/A lead. The person involved had significant domain knowledge, so they were able to slide right into a junior role. I hope that this answers your question.

 
 
Comment:    
by John Cook 10/24/2007

Peter - Interesting article... a lack of problem domain expertise will often hobble any offshore development team, qualified or not. And, the added overhead in communications to rigorously specify complex solutions more than offsets any perceived cost of labor advantage. All that said, I'm really hoping that the second installment won't try to convince the reader that Extreme Programming saved the day.

Author's Response:
10/27/2007    
As I said in another comment, the problem wasn't a lack of domain experience - it was a lack of technical experience. Also, I won't be giving anything away by saying that the solution wasn't eXtreme programming.

 
 
Comment:    
by Sanat Sharma 10/24/2007

Peter, I think the episode that you mentioned in your so called “first lesson” is not so convincing. If your Indian resource has not continued working with you, you cannot blame to the entire software developments center in India. I believe that in India, people are looking for two things in job. First is the money factor and other is the stability factor. If your company or any company from anywhere in the world is not able to provide any one of the factor to Indians, there will be an indefinite state of mind for the software engineer. Better to provide any of these two factors (Money or Stability) to an Indian Software Engineer for a long...Read On

Author's Response:
10/27/2007    
I am not blaming the Indian development team for what happened. As you will see in future columns, most of the blame lies with myself, and how the team was managed.

I agree that retention is a very serious issue that must be addressed in starting an Indian software team. With wage inflation running about 10% per year, it is difficult to stay in front of the wage scale. I also agree that Indian software engineers are highly motivated by stability and opportunity for advancement - both technical advancement and organization advancement.

 
 
Comment:    
by MG Hariharan 10/24/2007

First thing is Indian Software team does not have job insecurity They are being recruited very fast If there is no scope for future development then they immediately resign and go to greener Pasture. They vaue growth more than immediate salary benefits. I think this is a cultural problem

Author's Response:
10/27/2007    
There is a great deal of truth in what you are saying. See what we do to address this concern in future columns.

 
 
Comment:    
by Johanna Rothman 10/23/2007

Peter, this is worse than any of my experiences regarding the capabilities of the people, but not the output. It's so difficult to define enough of the requirements for remote people to deliver something of value. I'm looking forward to the next installment.

 
 
Comment:    
by vijay shinde 10/23/2007

Hi Peter,
That is really a worst experience. I am eager to know what you did differently second time. I think your company failed to bring the offshore team into practice. You are saying that trainees from India were treated as threat to co-workers in US and were not co-operated as expected, so definitely there was some sort of job insecurity feelings in Indian team and you failed to create friendly work culture. That might be the big reason for vanishing your Indian team.
Instead of starting a new center directly you could have taken help of local company as a joint venture and after some years your own subsidiary.
You can...Read On

 
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