Friday, February 22, 2013

Mr CIO, BYOD brings Hidden and the Unspoken advantages to your India office

(Reproduced from with permission)

There is consumerization of IT, there is huge productivity gain and so is huge cost savings for the organization as employees are getting their devices (BYOD). All are fine, well understood and there are many articles proving (& disproving the fact)  but there is a twist to this when it comes to India.
India has the usual gains plus as bonus, as in all respects, has some unique gains in BYOD which may not apply to the developed world at all.

Customs-STPI-overseas-No-Tax route
Generally in big organizations, captive centers and MNC offices, all laptops and desktops (and servers and even software) are actually ordered overseas via a route what I call “Customs-STPI-overseas-No-Tax route”. This is how it works. You are usually member of a govt organization called STPI (stands for Software Technology Parks of India) and because govt. encourages software exports ($$$ Dreams) they don’t tax the hardware used to manufacture (or produce or create...use whichever word you want to use) software. So you need to order these laptops overseas and then do a US$ billing and then get the invoice and apply these invoices to STPI for approval and then once approved pass on these to get customs (another govt. department) approval and then send it to the company which ships the laptop and then they ship them to the nearest airport and then customs clearance required where in you submit the documents which were pre-approved by Customs and STPI combo and then after due & thorough verification of papers (not the consignment) the boxes are sent to the ordered address (in this case the company which wanted these laptops) and then apply with STPI informing that the boxes (consignment)  have come, and requesting them to come come and ensure that the consignment is actually what the paper said and what we applied for and once they come (whenever they can as they are also very short staffed and 1000s of companies to deal with) and verify the consignment (a process called bonding) and these laptops/desktops/servers/software etc are ready to use. Wow ...if you were not aware of this, probably you are already sweating.

To do all these there is a separate department of shipping and handling in the company and they won’t work directly with the Govt agencies (do you know why? Send me an email and I will buy something may be a book via amazon or flipkart for the first 3 right answers) but they use clearing and forwarding agencies whose rates are exorbitant (again, do you know why? :-)) and by the time all these are done and the time consumed, the cost expensed and the whole process can make anyone (not used to these) really sick. Of Course this elaborate process employs many and very profitable for few middlemen and some few for obvious reasons.

Imagine this process say used for probably some 10,000+ companies may be with average size of the company to be 400+. The number will be astronomical and we don't know who all losing the it the govt. (because no tax) or is it the company by paying quite a huge sun to get these laptops here or may be both, and worse the lost time (& hence lost opportunity cost)  and hence lost productivity due to it.
Now imagine the laptop becomes dated and old and has to be removed from service. You guessed it right...pretty much the same procedure to be done in the reverse order :-) Apply, approval, send it back or donate...again all sorts of checking from Customs and got it!!

The BYOD and the Cloud Effect

Now imagine what happens if BYOD (& Cloud services) comes to India in its true sense....huge savings to the company and huge cost cutting as your don't need the specialized customized shipping and logistics department and you don't need those middlemen charging hefty fees and you don't need those red tapism. What a huge time and cost savings and what huge gain in productivity. Just the cost savings will be good enough to subsidize employee buying his/her own device and these cost saved a % of it, can be ploughed back to provide very good security because of enabling BYOD in the organization. (Guess i7’s peregrine guard and its integration with AD and EAS will provide complete BYOD security and you are done :-)

Another Dimension!!
If this is all w.r.t process and cost and savings etc, there is another dimension to this BYOD story which works well in India.
Most employees commute in company provided transport or if you are rich and lucky, chauffeur driven car. It takes approximately 2 hr each way which totals to 4 hrs per day just in the traffic and if BYOD is implemented in its truest sense, additional 4 hours of work at almost no cost (other that data cost..but did you know that there are already solutions coming to provide wifi access in the company vans and busses and paid by the companies)

Volla - seems like BYOD is made for India only :-)

Manjunath M Gowda
CEO, i7 NetworksAgentless BYOD Control”, @i7networks

No comments:

Post a Comment