Because of a surge in outsourcing contracts coming in from the US, the Wadhwani Company of ^-Hyderabad has grown 115 per cent in the past year and 600-plus per cent in the past three years. A large portion of this growth is attributable to Sharma Subramonia's philosophy of hiring the best possible computer systems people and giving them the freedom they need to do their jobs.

Most of Sharma's personnel operate as part of work teams that analyse, design and implement computer systems for clients. First, the company will get a call from a potential client indicating that it needs to have a computer system installed or special software written for its operations. Sharma will send over one of his people to talk to the client and analyse the situation. If it turns out that the Wadhwani Company has the expertise and personnel to handle the job, the client will be quoted a price. If this price is acceptable, a Wadhwani work group will be assigned the project.

An example of a typical project is the manufacturing client who called three weeks ago and wanted to purchase five personal computers for his firm's engineering staff. The company wanted these machines hooked up to the main computer and to have a dedicated connection to their Houston, Texas office. Additionally, the firm wanted its computer-aided design software to be modified so the engineers could see their computer-generated drawings in a variety of colours, not just in monochrome. The Wadhwani group installed the entire system and modified the software in 10 working days.

Sharma realises that the growth of his enterprise will be determined by two factors. One is the creativity and ingenuity of his workforce. The other is the ability to attract talented personnel. 'This business is heavily labour intensive', he explained. 'lf someone wants a computer system installation, that may take 100 labour hours. if 1 don't have the people to handle the project, I have to turn down. My expansion is heavily dependent on hiring and training talented people. Additionally, 1 need more than ju hard workers. 1 need creative people who can figure out n( approaches to handling complex problems. lf 1 can do then two things, I can stay a jump ahead of the competition. Otherwise, I won't be able to survive.'

In dealing with these key factors for success, Sharma has initiated three changes. First, he has instituted a bonu.^,_ system tied to sales; these bonuses are shared by all of the personnel. Second, he gives quarterly salary increases, with the greatest percentages going to employees who are most active in developing new programs and procedures for handling client problems. Third, every six months the entir staff goes for a long weekend to a mountain area where they spend three days discussing work-related problems an ways of dealing with them. Time is also devoted to social events and to working on developing an esprit de corps among the personnel.

QUESTIONS

1. In what phase of the venture life cycle is Sharma's firrr currently operating?

2. How are Sharma's actions helping to build an adaptive firm? Give three specific examples.

3. if Sharma's firm continues to grow, what recommendations would you make for future action? What else should Sharma be thinking about doing in order to keep things moving smoothly?

4 Do you have ideas about how Sharma could acquire more of the US outsourcing business?