An interview with Paul Reed, Vice President, Consulting Services, Alphasoft Services Corporation, USA

Tell us something about your company.

Alphasoft is a US based IT consulting company with three offices in the Silicon Valley. We opened our first offshore location at Hyderabad recently since costs are relatively lower here when compared to other cities. In the US we have a workforce of more than 700 employees, out of which over 500 employees are Indians. We have been doubling in size every year and Indians make up a substantial part of the company. Moreover, there are 700 more visas being processed. The company has been identified as the 15th largest and the fastest growing IT companies in the Silicon Valley.

Why did you choose India as a destination? How much are you willing to invest?

We chose India as our destination because our CEO is an Indian. There is lot of talent around and I for one, have been working alongside Indians for the last 20 years in my tenure as a software professional. I have a lot of respect for them. I appreciate their skills, proficiency and the drive of these engineering folks. Presently we are going to invest around half a million but may even stretch it to one million.

You are talking of hiring people, what kind of talent are you looking for?

We would like to hire graduates from top universities, who have been consultants for a couple of years, and have worked in top companies. We want our team in the US and India to coordinate as one while dealing with clients. We provide an environment of technical challenges and a positive work culture. Right now we are hiring only experienced personal but later we want to hire fresh graduates too.

Which are the areas that you provide services in?

We provide services in ERP, e-commerce, staffing, and quality practice. A lot of good projects are in the pipeline. The scene is what it was in the automotive industry a while ago. Though it may not be as glitzy as e-business, companies will be working on supply chain, financial services, insurance, hitech and hitech manufacturing services.

What is your set-up like here?

In Hyderabad, we now have a team of nearly 50 employees, but we are looking at around a 100 by the end of the year. In a couple of months we will be moving into our own building. We have also signed a MoU with the state to acquire land at hi-tech city.

How do you plan to train your employees?

Since we hire seasoned and experienced hands, training is not a big issue to begin with. However, later on when the freshers come on board, and new technologies emerge we will look at retooling. We strive to see that our employees are provided for in tools - configuration management tools, design management tools, engineering tools, and training them for more productivity since our clients demand sophistication.

With the lull and retrenching in the US job market, what is the future of Indian employees in the US?

The market is shrinking and it is experiencing a slower growth rate. Companies are therefore careful about IT spending. This is especially true of large companies. Since we are into staffing and consulting, we have a value proposition in a down economy. We have managed to hold our own and managed a steady growth despite all the odds.

The situation however cannot be termed as recession, as yet it is more a slow-down. Alphasoft positions itself in such a way that revenue from hi-tech manufacturing should make up for 60-70% of the total revenue. Although spending may come down, Alphasoft can still do staffing as well as take on projects. We have diversification, as there is constant need for skilled staffing. However this will definitely mean more automation too. Companies will look at squeezing the supply chain; using CRM for sales force etc. There is greater emphasis laid on offshore work because of this.

What helps you retain employees?

Our low employee turnover bears witness to the fact that our employees are happy. Nothing works so well for motivation as great projects and great clients, good compensation and excitement. No management process can substitute this with anything else.

What are your future plans?

We are a debt-free company, and we do not have any VC funding so no one can pull the plug on us. We will continue increasing our sales force because a soft economy is not the time to cut sales but to leverage the sales force. To fine-tune our sales force and strategy is our priority. Our revenue generation was more than 50 million in the year 2000. Though Nasdaq listing is on the agenda it is not going to be a rushed affair as it will only provide liquidity for our founders and help us retain people, and give us the money for acquisitions in Europe. It is not an end but a financial structure change. It is also not a panacea, and not a step to be taken prematurely. We will choose an appropriate time for this.

ARCHANA JAYAKAR

archana.hydKcareercommunity.co.in