Outsourcing firm enjoys close proximity to Fortune 500 companies
By: George Spohr
WEST WINDSOR Cordiant Technologies Americas Inc., an outsourcing company that opened up shop here earlier this year, is growing rapidly, its president says. And this week, the company is launching new product-development services for small- and mid-sized independent software vendors.
Cordiant, which opened a decade ago in India, says its location here has helped it gain software clients.
"For long term success, software product companies looking to outsource should consider Indian partners, like Cordiant, whose sole focus is software product engineering," said Dennis M. Paul, the company’s president.
Overseas, Cordiant is currently expanding its product development facilities with a new lab located in the International Technology Park in India. The ISV Innovation Lab, which will be solely dedicated to outsourced product development, will be fully functional in the first quarter of 2006.
The company established the base in Princeton Overlook Center, off Route 1 south, so it could be in close proximity to its North American customers which include the Tobacco Merchants Association, the U.S. Small Business Administration and World Vision International and to enhance its offshore delivery capabilities in the region.
The greater-Princeton area was attractive because of the number of tech-savvy organizations in the area, easy access to high-quality employees and proximity to Princeton University, Mr. Paul said. In addition, the company has targeted local pharmaceutical and healthcare organizations.
Companies typically opt for outsourcing to save costs. According to Mr. Paul, there is a definite cost benefit to outsourcing projects to Cordiant Technologies versus outsourcing to U.S. technology firms. Apart from direct cost benefits, Cordiant Technologies’ clients benefit from 24-hour development cycles.
There are also non-cost benefits of outsourcing, he points out. Outsourcing of non-critical activities frees up an organization’s IT staff to focus on the business. For example, Cordiant Technologies was able to create a Web content management information portal for the Princeton-based TMA. That helps the organization manage all of the vital information for the worldwide tobacco industry.
Cordiant Technologies also works with a number of independent software vendors in the U.S. The primary benefit to them is quick delivery of products to the market.
"The large talent pool in India helped in a big way," Mr. Paul said. "Our ISV partners could not have ramped up their development and testing staff so quickly if they had opted to build their team in the U.S. It would have taken them several months to do that, instead of a few weeks that it takes us in India."
Cross-border outsourcing can be risky, however. Before entering into such arrangements, firms need to check references and satisfy themselves that the outsourcer has a consistent, proven track record of delivering to its customers. They need to consider specific country risks to ensure that economic, social, and political conditions will not adversely affect service delivery. They also need to confirm that the outsourcer can comply with all applicable U.S. laws and regulations.
Another key concern is information security. Firms need to insure their intellectual property and corporate data is safe with the provider.
To mitigate this risk, Cordiant Technologies has an information security management system, an organizational security policy, as well as technical guidelines for the network administration. The company has specific guidelines for employees on safe and secure practices at the workplace. Its network design includes firewalls, intrusion detection systems and anti-virus protection. Finally, it created a business continuity plan and disaster recovery plan to keep essential business functions running in case of a disaster.
Special Writer Sherree Decovny contributed to this story.

