Often companies underestimate the process involved in setting up and managing a
development center. Lot of multinational companies who had started the development centers
in India in the last few years are not reconsidering their decision due to the issues they have
at the development center related to Human resources and cost control. Recently an IT vendor
based in India acquired the subsidiaries of 2 US companies.
After a long research on the challenges faced by the subsidiaries in India, we developed a
model for setting up the development center that will reduce the time, cost and risks involved
in the setup of the subsidiary in India. This paper discusses the need for a detailed setup
methodology and the broad issues or steps to be considered while setting up a centre.
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