Gemstone Systems used Talentica to set up its own development center in India using the
Build-Operate-Transfer approach.
Background
GemStone Systems provides data services solutions for enterprise customers. It
is recognized worldwide for its unique competency and patented technology in object management, virtual
memory architectures, high-performance caching, and data distribution technologies.
The Challenge
Gemstone wanted to expand its R&D operations in India. While its top management
wanted to reap the benefits offshore development, its Engineering Team was not entirely convinced.
This was because Gemstone had a technologically complex product. Moreover, it had no experience in outsourcing development,
even locally in the US.
Gemstone was looking for a risk free way to setup an initial team in India, convince some of its own management
about the feasibility and benefits, and then go ahead and expand India operations.
The Solution
Gemstone leveraged Talentica's Build-Operate-Transfer service, BuildODC, to quickly set up a team in India. The initial team
consisted of experienced developers (all IIT/REC graduates) hired specifically for Gemstone as per
its requirements.
The offshore team adopted the product development methodology followed by Gemstone’s development team in USA. Access
to the source code and bug system was provided through a secure infrastructure.
Communications were mainly through scheduled weekly status calls for each product team as well as daily
informal discussions between the two teams on design and implementation issues. Although bulk of the
communication was through e-mail, members of both the teams also used voice and internet messenger services
as needed.
Quarterly visits by Gemstone's Product Managers & Engineering Managers to India ensured that the offshore
team always had a clear vision of the product roadmap.
Once Gemstone was convinced that the Offshore Model worked for them, they set up their own subsidiary in
India and exercised the transfer option. All Talentica Employees working for Gemstone were transferred
to Gemstone India.
Even after the transfer was completed, Talentica helped Gemstone transition
the management.
A risk free way to setup a subsidiary in India
Gemstone could defer capital investment for setting up its own subsidiary in India till it was convinced of
its success. It also learned a lot about hiring and retention of people in India and processes required for
successful dual shore product development. Since the transfer option was priced in the initial contract itself,
there were no valuation surprises.
The right people to work
The entire team was selected as per Gemstone’s requirements of experience and qualifications. Hiring of developers
was restricted to graduates of the top colleges in India (IIT’s and REC’s). Thus, Gemstone got developers with
the qualifications it required, instead of having to manage with a team built from pre-existing resources with the
Indian partner.
Full Management Control
With a dedicated team, managers at Gemstone had the freedom to manage and reallocate developers between tasks as
per their needs.
Higher productivity and quality
Team members hired for Gemstone were worked exclusively for them. This ensured that Gemstone continued to get maximum
productivity after the initial domain knowledge transfer.
To learn more about what
we have to offer, write to us at info@talentica.com
 
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