Case Study: Swiss-Indian Software Development

Share this...

Swiss-Indian Co-operation in the Area of Offshore Software Development

In the mid 1990s, large corporations in Europe and the USA realized there was a huge lack of skilled software engineers. The need to solve the Y2K problem within a short timeframe, combined with unsuccessful education policies of the respective governments were two of the major causes for the increased demand. In addition, the gaining impetus of globalization produced a common management dogma:
„Speed up at high tech but low cost, and grow along large scales.”

Also Subcom of the erstwhile National Transport Group (NT Group) followed this trend. To quote a senior manager’s public presentation: “The Customer is demanding more, faster and at better prices while Subcom is struggling to recruit specialists in reason- able time to satisfy this demand.”

The demand was met with  supply from India, where it was mainly the private sector which promoted its capabilities. The Indian suppliers offered their  ser- vices with a high sense for customer satisfaction and very attractive pricing (supposedly  up  to  60% cheaper than in the client’s economies). The offered know-how was said to be mature  and  readily  avail- able.

Subcom’s strategy to overcome its  resourcing  prob- lems was to enter a strategic co-operation with  a newly formed company called Indian Software  Ser- vices Company (ISSC). In 1999, a  frame  agreement ‘for the provision of computers services’ was signed, followed by a MOU  (memorandum  of  understand- ing) on the formation of a joint-venture and, subse- quently, a business co-operation agreement. The joint-venture agreement was signed in the year 2000, through which ISSC was to hold a block of shares of 60%,  and  Subcom  40%.

About the Author: Waseem Hussain is the Founder & CEO of a services company with a specialization on business with India. Before, he was the business manager of a globally operating outsourcing company, after heading a joint venture between a Swiss and an Indian software development company. His key strengths are quickly grasping the clients’ situation, crafting executable strategies and implementing steps towards success. View his short bio