Doing Business in India - 10 Commandments
The below are general observations of doing business in India. With every generic rule, there is always an exception but being an Indian born and raised in India, I concur to these observations yet once again many years after I left the country.
- 1 Timing: People are late (always) to show up for meetings by at last 20 mins, personal or not. If someone tells you they will be at a certain location for diner at 8 PM, they will most likely show up late. Getting things done on time is rare and thus missed deadlines are common. Work typically starts around 10 AM, 2 hours later than western counter-parts. Allot 25-40% additional time to anything anyone tells you. That's just how the culture works.
- Interaction: Just because you sent an email does not mean you will get a reply. It depends on who you send the email to and at what hour. You're better off getting an answer by walking over to whoever it is you need to talk to. The hierarchy system is rampant contrary to western style of work-environment. Your superior is a "sir" and the big cheese is typically addressed as "boss". You need to take permission before you speak to your superiors in many cases. In most cases, you cannot leave your desk until your supervisor has left the office. You could be swatting flies but you have to stick around. Oddly enough, is cases I noticed, people stick around as late as possible as a show of dedication to the company - even when they don't actually do real work. The supervisors expect that. Coming home at 9 / 10 PM is common.
- Ethics: Like the Japanese, most businesses still expect their employees to stick around till they retire. I know this trend is changing slowly. You are expected to work long hours when you 1st join the company and are given the grunt work. Family is second work is first (again - very similar to the Japanese). Almost everyone I know from school and college is in this situation. Compared to US and European standards, there is zero work-life balance and overall quality of life is poor in the corporate world. This includes working for multi-national US based firms too.
- Personality: Indians are happy people. They really don't have any issues in life. They like to please. Sometimes this becomes a problem when they agree with everything you say and say yes to everything you need - whether or not they understand underlying risks and dependencies or whether or not they even have the capabilities you seek. One needs to diligently make sure clarity of communication and expectations are maintained at all times. Like Italians and Spaniards, Indians are loud animated people. If you have never left Maine, you will be in a culture shock.
- Regulatory & Business Environment: Getting site licenses for construction, incorporating companies, labor contracts, obtaining permits (there's a permit for everything), etc involves state regulators. Red tape, bureaucracy, convoluted laws and political interference is rampant. As much as people like to say its getting better, I would say its just getting more polished and at different levels. You pretty much need to bribe everyone from the "watchman" who guards your premises to your mail delivery guy to your support staff to the banker who will finance your expansion strategy. The word bribe is a grey area as sometimes you are blatantly asked to be put cash on the table before your work gets done and sometimes its a part of some religious matter. The latter is tricky because you need to decide how much and when to give out cash in order to continue business as usual. There are also random unscheduled Government declared "bandhs" (or closures/curfews) - defying which can be dangerous at times depending on the situation. If you have been to Mexico or Nigeria, you will know exactly what I am talking about.
- Religious Etiquette: India is a land of culture and over 100 of them. All unique in history and rich in their teachings. Thus, there are a lot of holidays and many reasons why someone would take time off. I have seen everything from people showing up one day with a shaved head for a sales meeting to folks with various marks and piercings on their body to folks wearing traditional clothes for a closing. Fyi . . . these guys I am referencing are Tier 1 M&A professionals from big ibanking houses to top CIO's of major corporations. This is something one needs to respect and understand.
- Logistics: India severely lacks basic infrastructure that we in the developed world take for granted. Roads, electricity, connectivity (Internet, telecom, wireless, etc) can depend from place to place even in major cities like Bombay. This will (and is already) change overtime but in a place as small as India with 1+ billion people, there are bound to be challenges related to commuting and communication support. But it will be a while before we can expect highways and traffic congestion to ease. Commuting in cities like Bombay and Bangalore is similar to Hong Kong, London, New York or Penang. A distance of 5 miles could easily take an hour. Basic internet connectivity is still a pipe dream for many and costs 3 to 4 times as much as what developed countries might typically pay (will change in the next decade with massive investments in WiFi and Wireless Broadband). Driving in India is challenging because basic civic sense, discipline and respect/consideration for others is a foreign concept. It is partially due to the infrastructure and partially due to lack of education and driving standards for giving out licences. If you thought the St Mary's round-about in Milan was a death sentence, try the Haji Ali circle in Bombay. Small traffic infractions are gotten away with by bribing the cop right on the street so its the price most people expect to pay to drive how they do in India.
- Communication: Most people I know do not have a voice mail or a call waiting service on their cell phones (because it costs more). So you can reach someone only if they want to be reached. If someone needs to reach you, they will call you and hang-up - its called "missed call back". Which means if I see I have a missed called from you, I will call you back. Inbound calls are free but outbound calls are charged (by virtue of airtime + $ or both). While on the phone, people can suddenly start talking to others without notifying you otherwise (not as common but enough for me to notice). It is common for people to have second names and call you by that name. It is also common for people to whistle, shout or clap their hands in order to address someone - even if I am literally right across the room. This is a cultural and a socio-economic thing - do not take offense.
- Food: Like the Japanese, most business conversations happen over food. Food is at the epicenter for everything. It is common for subordinates to invite their boss(s) over for lunch/diner at their house. Indians are some of the best cooks in the world (no exceptions - everyone of them including the maid next door) and they are proud to show it. 1 office of 50 employees can represent 50 different cuisines. Experience and explore that and don't find it strange that someone spent 6 hours cooking for you for 1 meal. Respect that - because food is a bonding thing. Did I say it is also one of the spiciest cuisines in the world.
- Class System: In the US, my friends are those I cherish and spend time with for who they are not what they are. In India, its the opposite. The rich mingle only with the rich and so on. The age old class system still exists and my guess is that it will continue to for a long time. You will never see a partner at a law firm hang out with the peons - even over cricket. Your social standing is defined based on who you interact with and who your friends are and where your kids go to school. Think Hollywood/LA meets Upper East Side here.
posted by Janak Joshi @ 12/01/2009 03:15:00 PM
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