The document discusses the challenges of building a global software company from India. It outlines issues in hiring the first US employee, funding US operations, product management splits between India and US, engineering challenges with cultural differences and distance from markets, and ensuring proper marketing, sales, support, and operations functions when teams are split globally. Suggested solutions include bringing on co-founders in the US, raising $500k-$1M initially, having product managers travel frequently, using cloud services to reduce IT costs, and maintaining strong communication across teams.

1. Company Confidential 1
Challenges of Building a Global
Software Company from India
Samir Palnitkar
Jatin Parekh

2. Company Confidential 2
The Presenters
Samir Palnitkar
President, ShopSocially
• 22 years of experience
• 5th startup.
• 3 started in US (I2P, Obongo, Ingot)
• 2 started in India (AirTight, ShopSocially)
Jatin Parekh,
VP of Product Management, AirTight Networks
• CoreObjects, IMR
• Founding Member at AirTight Networks

3. Company Confidential 3
1 min Attendee Introductions
Your Name
Name of Company
Year of Founding
What does the company do?
How many people?
Funding Status?
Approximate Revenues <$1M, or >$1M
Why are you trying to go global?

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Suggested Agenda
• Interactive Presentation
• 15 min break
• “We ask, you answer” session
• Open Q & A

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Ground Rules
• Leave all mobiles switched off except during
the break
• Please limit “air time”
• Be succinct

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Why are you going global?

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Let’s Get Started with the
Challenges

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The Team

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Challenges
• How to hire your first US employee?
• What should be the background?
• What do you pay them?
• What will they do?

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Some solutions
• Bring on a co-founder or an employee with a high
equity stake
– The person must have his/her “skin in the game”
• Must not ne his/her part-time activity
– Find someone who will take less cash
• You should have a history with the person
• You should trust the person completely
• They should be prepared to do what it takes. No
set role.
• How are you solving this problem?

11. Company Confidential 11
Funding

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Challenges
• Where do you get the money to hire a US
team?
• How do you pay for US marketing costs?
• How do you pay for a US office?

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Some solutions
• Raise money – at least $500k, ideally $1m.
– Less than that you will not be able to sustain the US office
• Start enough cash flows before expanding into the US
• Do some services to generate cash
– Set up a contract with a company to get paid on a contract
basis
– Give them a non-exclusive lifetime license
– CAUTION:
• Too much services revenue can derail product focus
• Too much customization for early customers can make product
very narrow
• How are you solving this problem?

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Operations & Logistics

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Servers & IT
• What we did earlier
– Discrete servers and dedicated hosting centers
• IT a huge pain
– Software and demo delivery through CDs
• Everything should be online
• The only viable option is cloud services
– Reduced cost
– Reduced IT maintenance cost
– Complete elasticity
• Hire the best network administrator / manager you can find
• Questions
– What are you doing today?
– How much do you pay?
– How do you reduce costs?

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Product Management
A huge challenge

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Product Management
Sales Marketing
Business
Development
Post-sales
Customer Success
Product
Management
R & D Quality Assurance
Collateral
Development
Customer Support
Global Split

18. Company Confidential 18
Challenges
• Where is PM to be located?
– Near customer OR
– Near R & D
• What is its focus?
– Customer focus OR
– R&D focus
– How to manage undue R&D or customer influence?
• Where is the decision making?
– Outside India
– In India
• Are decisions clearly communicated?
– How are they communicated?
– Are the motivations behind each decision clarified?
– Do engineers understand the “higher purpose”?

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Some Solutions
• Frequent Travel for Product Managers is a must
– Once every 2 months
– Customer visits are necessary
– Difficult personally
• Prioritization and estimation must be very clear
– Clear prioritization from the US team
– Clear estimation from the engineering team
• Drive a strategic direction for the product
– Get executive and sales buy-in
– Resist defocusing for tactical wins (specific sale, engineering shortcut, etc.)
• Frequent Calls across the border
– At least 2-3 times per week or more
• Priorities must be clearly published
• How are you solving these problems?

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Engineering
Usually located in India

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Challenges
• Split engineering
– Who to have in the US?
– Who in India?
• Too much distance from the market
– Motivation problem
• Cultural Differences
– Timeliness
– Team elasticity (frequent hiring and firing in the US)
– Team malleability (work expectations, growth expectations)
• Too many exit points for engineers
– MBA, Studies abroad, peer pressure to work for a big company, better
salary, relocation due to marriage
• Ready-made talent is not available e.g. as in Silicon Valley

22. Company Confidential 22
Solutions
• Keep only customer facing engineers in US
– Rest in India
– Keep core R&D in India
• Bridge the distance from the market
– Internal marketing a must
– Frequent updates
– Frequent motivational discussions with India employees
• Cultural Differences
– Coach your employees
– Write a guide on the cultural differences
• Exit points
– 1-1s with engineers every month (difficult, but must)
– Keep them thoroughly informed of any positive developments
• Hiring
– Hire young and groom. Keep hiring fresh talent.
– Churn is a fact of life. Minimization is the only option.
• How are you solving these problems?

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Marketing
Can be a split function

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Challenges
• How to split?
– Conferences, Public Relations etc. in the US
– SEO, SEM, Social Media, Graphics & Collateral Creation,
Website Maintenance out of India
• Expectation Mismatch
– US teams are very “look” oriented
– India teams are very fact oriented.
– India teams are not perfectionists
• Communication is a challenge
– Specs are often interpreted differently
– Perspective is very different
– The quality of collateral has to be extremely high.

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Some Solutions
• Split
– Keep all things that require a handshake in the US
– Keep operational items in India
• Expectation Mismatch
– Teach India team to be perfectionists
– Bring in a “look” oriented perspective
– Engineers should avoid contributing to marketing
• Communication Challenge
– Use a versioning system to share collateral (Dropbox)
– Have frequent calls (not all US team members are willing
to talk in the night)
• How are you solving these problems?

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Sales

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Some Challenges
• The split is very hard to decide
– Sales must be located close to the customer
– If your product requires a handshake, then you need a US team
member
– Even if it does not require a handshake, you need a member
who can stay up in the night and take return calls
• Things that can be done remotely cannot be done
effectively because of lack of coordination
– Prospecting
– Cold Calling
• Coordination between sales and engineering is missing
• Motivation and sense of belonging for the sales engineers is
missing.

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Some Solutions
• Stay close to the customer (virtually)
– Many sales are done on the phone. No need to meet.
– Get a US phone # and redirect to India cell (google voice + localphone)
– Be ready to respond if the customer calls back
– Don’t use Skype, works badly
• Prospecting and cold calling can be done
– Prospect via LinkedIn
– Do cold calling campaigns from India
• Coordination
– Use Salesforce or a similar tool
– Get engineers to talk directly with sales engineers without an
intermediary.
• How are you solving these problems?

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Support

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Challenges
• The Split
– Who goes where?
– What should be in the US, what in India?
– How does the support team talk to engineering?
• Communication
– How to synchronize between the teams?

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Some Solutions
• Split
– Keep some customer support staff in the US OR
keep some staff in India on the night shift
– Phone connectivity should be very good
– Support team should communicate frequently with the product
manager and the engineering team
• Communication
– Use of a CRM is a must (e.g Salesforce)
– Regularly create a list and send to engineers. Discuss problems
with them live.
– Create a core customer support team within engineering on a
rotation basis.
• How are you solving these problems?

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We ask, you answer

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What is the biggest challenge
facing your organization?
How are you solving it?

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How do you decide product
priorities?

35. Company Confidential 35
How do you do your online
marketing?

36. Company Confidential 36
How do you generate leads?

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How do you attract new
employees?

38. Company Confidential 38
How do you handle employee
attrition?

39. Company Confidential 39
How is selling in India and US
culturally different?

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Open Q & A

41. Company Confidential 41
Thanks
Samir Palnitkar
(samir@shopsocially.com)
Jatin Parekh
jatin.parekh@airtightnetworks.com