India Business Proposal

Date: April 8, 2012

Memorandum for CEO

Subject: Proposal to Research and Make a Recommendation on the Feasibility of Expanding BizTech services into India

BizTech has been considering expanding services into the subcontinent of India. With its expanding IT industry, India is a natural choice to support the expansion of BizTech. This proposal provides a brief overview of India and develops the framework for a more formal research report.

Problem

The salary an IT specialist educated in the United States on average is $77,000 a year (Bureau of Labor Statistics: Occupational Outlook Handbook, Computer Systems Analysts, 2012). We need to find a location that is easier on our bottom line, with the same caliber if not better of services provided. India where conducting business with foreign companies is a privilege, and an IT talent pool that rivals the US; will increase our customer service capabilities and allow for growth of BizTech (Chapel).

Country Overview

After completing some research, we believe India is logically/strategically the next step in BizTech international expansion. India has an estimated population of 1.17 billion and an annual growth rate of 1.38%. The capital city, New Delhi, is the third most populated city; following Mumbai (formerly Bombay) with 16.4 million, and Kolkata (formerly Calcutta) with 13.2 million (Bureau of South and Central Asian Affairs, 2011). India speaks 18 official languages, the two most prominent are Hindi and English.

Driven by a more open market economy and capitalizing on its large population of educated English speakers, India has become a major exporter of information technology services and software workers; India has established itself the preferred location for companies wishing to outsource their IT and support functions. By 2020 projected to be a US$225 billion industry, the Indian IT industry has been pivotal to getting India recognized on the global map (IBEF: India Brand Equity Foundation, 2011).

Audience

Our report has multiple audience members:

* Gatekeeper: The CEO of BizTech, must approve the proposal before passing it on to the board of directors for review and/or action

* Primary: The BizTech board of Directors, the board of directors make the decision whether of to pursue further research or cancel this project.

* Secondary: Any BizTech department effected by the expansion to India (Human Resources Finance).

* Auxiliary: BizTech customers

* Watchdog: Governing bodies of both the US and India, such as the SEC and State Department. Additional firms seeking to do business in India.

Topics to Investigate

With further research, we plan to answer the following questions in detail.

1. What does BizTech need from India?

* Culture- How can BizTech successfully assimilate to the Indian culture while maintaining its identity?

* Economic stability-Does the economy provide stability to ensure years of successful business?

* Legal Issues-What does it take to operate in India?

2. What can the Indian market deliver?

* Market Assimilation- Can BizTech adapt its business model to the Indian culture?

* Competitor Analysis-Who is our competition locally and abroad

* Location-Where in India should we set up (a) office(s) to expect the best return?

3. What do we need in terms of workforce?

* Employees-Will a blend of both Indian managers with American oversight best serve the company? What ratio should the blend be?

* Employment Outlook- What is the current outlook for Indian employment? Is there an adequate workforce in available?

* Employee Expectations-Indian workers expectations will differ from Americans, but how different are they?

Methods and Resources

It is expected most of the information pertaining to this venture will be collected from various website. Below is a listing of websites that have proven to be beneficial.

(2011, May). Retrieved April 6, 2012, from IBEF: India Brand Equity Foundation: http://www.ibef.org/industry/informationtechnology.aspx

10 reasons why one should do business in India. (2011, September 9). Retrieved April 8, 2012, from rediff.com: http://www.rediff.com/business/slide-show/slide-show-1-10-reasons-why-one-should-do-business-in-india/20110909.htm

Bureau

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