Alliances Around the World Cultural Roundtables - India
Subhojit Roye, CSAP Principal, Strategic Alliances
Tradeshift, Inc.
3rd March 2016
1. RelevantBasics2. Implica3onsofPartnering
3. BusinessRela3onships4. CaseStudy5. Keytakeaways
Agenda
India:ThelastBRICstandingIndia is set to become one of the fastest-growing economies in the next few years. GDP in 2016 is expected to grow 8%, significantly stronger than China - though, from a lower base.
http://www.worldbank.org/content/dam/Worldbank/GEP/GEP2015b/Global-Economic-Prospects-June-2015-Table1.pdf
India:Amatchlessbusinesspartner
http://www.nasscom.in/india-value-proposition
1. Value-to-weightra3o2. Highvalue-addedorIPdrivenbusiness3. Typeofpartnercompany:
– Global,Local,andGlocal– WesternvsIndian
RelevantBasics
• Therecouldberadicalchangestoassump3onsandini3albusinesscase:
– Yourcollaboratorhaspoten3altobecomeacompe3tor.
– Yourprospec3veacquisi3ontargetmayevenbuyyouout!
• Poten3altoimpact:
– IP:Patents,copyright,licensingandfranchising– PhysicalAssets,Know-how,Brands,Talent– Long-termbusinessplans
Implica3onsofPartnering
General:
• Indiaisavastcountry,andwhileitiseasytogeneralize,thereisimmensediversity
• Butthemorethingsseemdifferent,themoretheyremainthesame
– Indiaisthe“servicesback-officefortheworld”forIT,BPO,R&D,Engineering
– Concernsaboutlanguage/culturearenolongerrelevant.(Peopleunderstandyou)
• Beawareofdifferencesacross3mezonesandincurrencies(Rupees/Paise)andnumbering(Lakhs/Crores).
BusinessRela3onships
Sociale-que0e
● Understand levels within a company. Respect seniority. (Be aware of hidden or informal influencers)
● Be gentle. Never loud, arrogant or false. (Better to be trusting)
● Meeting start times and durations are not always followed. (But you should remain punctual)
Commitments
● A “nod” can mean a “yes”, but also a “no”? (Always confirm your understanding).
● Ask whether "I can do it" means "best intentions" or "I WILL make it happen”
● Define “success”, “failure” and what is “acceptable”. (Plan contingencies, and escalations)
BusinessRela3onships
Laws,IP,Taxesandcompliance● Laws are complex – vary by state, sometimes by city and can change suddenly
● IP/ Patents: There are a lot of safeguards, but do take care to protect yourself
● Foreign currency: Assume exchange rate fluctuations, explore locking-in rates
● Taxes are complex– understand implications to your business model.
● Be aware of Double Taxation Avoidance Agreements (DTAA) that can impact transfer pricing, royalties, margins.
● Take care about repatriation of funds and profits
● There is increased pressure from government and from social media to be transparent
BusinessRela3onships
Ini-aldriverforTescotoenterIndia:
● Lowcostsourcingforitssupermarketsworldwide
Currentsitua-on:
● Bangaloreisnowtheirsingleglobaltechnologyandretailopera3onscenter
● 50-50JVwithaTatacompanytoenterIndia's$500bnretailsectorwith12stores
CaseStudy
Ques-onsforourbreakoutsession:
1. WhatpointsaboutIPshouldoneconsiderwithpartnersinIndia?
2. Whatlevelofsupportshouldoneexpectfromgovernment?
3. Whatare“unexpected”benefitsonecangetthroughpartneringinIndia?
1. Themorethingsseemdifferent,themoretheyarethesame
2. Therecanberadicalchangestoassump3onsandini3albusinesscase
3. Bepreparedtobesurprised4. Rela3onshipscanrundeep,personalandverylong5. Indiaisincredible,enjoytheride!
Keytake-aways
Dhanyawad!Thankyou!
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