[jsfg_cinti] The Delhi Model

Here's an interesting story I came across while reading the Techbooks company 
website.  The excerpts given below actually come from the Techbooks company 
website.
In October of 2000 the American CEO of the TechBooks company, Tom Cunningham, 
was crowing about the cost savings of using Indian labor (see Excerpt #1).  On 
February 14, 2003 he was replaced by an Indian, Ranjit Singh (see Excerpt #2).  

Comments?  (If you have any comments please send them to me by private email 
rather than posting to the JSFG mailing list.)

----------------------- Excerpt #1 ------------------------
The Delhi Model
October  2000

What does TechBooks of Fairfax, Va., have in common with 185 Fortune-500 
companies? A business operation that TechBooks CEO Tom Cunningham calls "The 
Delhi Model."

The Delhi Model is a business plan in which much of the U.S. demand for content 
preparation for the Internet is outsourced to more than 1,100 full time 
TechBooks employees in India. These operations feed the growing demand from 
multinational corporations, publishers and Internet companies to prepare 
content in the language of the Net. The New Delhi programmers convert text into 
Internet-ready formats such as XML, HTML, SGML, PDF and RTF. The advantage? 
Labor costs for programming are only a fraction of what they are in the United 
States. 

The labor cost differential in this model, and the fact that Cunningham can 
rightly claim that it has tripled TechBooks' revenues to $60 million this year, 
makes Cunningham a popular spokesman on the subject of business in India. 
...

Cunningham told the audience it is not necessarily easy, but it is doable. 
India, he explained, is a better market than China for such work because the 
government is supportive of business and most Indians speak English very well. 

The advantages of the Delhi Model include: 

tremendous savings on high-quality information technology labor, 
an existing westernized business culture, 
a predominance of English-speaking people, 
a democratic government and trade associations committed to reducing business 
obstacles, 
an extremely well educated population of 1 billion, and 
an adequate telecommunications infrastructure. 
...

Details at URL:
http://www.techbooks.com/newsroom/articles-delhimodel.htm

-----------------------------------------------------------


----------------------- Excerpt #2 ------------------------
TechBooks Names New CEO

FAIRFAX, VA, February 14, 2003-TechBooks chairman and co-founder Rakesh Gupta 
announced today that Ranjit Singh, former president and chief executive officer 
of Reliacast, Inc., has joined TechBooks as chief executive officer. Singh, who 
joined the company's board of directors in May 2002, succeeds Thomas F. 
Cunningham, who had served as TechBooks' chief executive officer for the last 
three years.
...

Details at URL:
http://www.techbooks.com/newsroom/news-021403.htm

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