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Bridges Between Spain and India

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by Louise J. Schubert

A recent article in the Spanish newspaper “La Vanguardia” (March 3rd), with the heading “Haciendo negocios en India” or “Doing Business in India” by Jordi Joan Baños, the local correspondent in New Delhi, www.lavanguardia.es/blogs/india.html, made me sit up with interest. I found it fascinating to read advice for Spaniards on how to avoid pitfalls in a country which from my Anglo-Saxon viewpoint and my own personal experience, shares more than one characteristic with Spain.

In August 1993, just a year after arriving in Madrid, I was asked to take an assignment in Agra, famous for the Taj Mahal, the Fort and wonderful marble handiwork. I worked with the newly established local management team of the hotel “Novotel”, in preparation for the imminent opening which was planned for the autumn.

The hotel was still under construction 'the Indian way'. It was an amazing experience for me; there was not a single machine on site. Everything was done by hand - and there were plenty of them.  Women were working side by side with men, transporting loads of cement on their heads from one area to the other. In the meantime, their toddlers and babies slept on material spread out on the floor, in what would one day be the main lobby.

I had already participated in a number of hotel openings in the UK and Spain but I had never seen anything like this one. The project was a joint venture between the Indian group “Oberoi Hotels” and the French multinational “Accor Hotels”. 

Years later, in 2007, I had the good fortune to return to Agra as a tourist and to see the almost 15-year-old hotel, no longer a Novotel, but a Hilton. I could pick out some of the rooms that I had worked in and indeed the hotel had already been refurbished, probably a couple of times. 15 years is a long time in the life of a hotel. The campsite where the “builders” had lived, (basically entire families were to be found) was now a very smart entrance and garden area.

Agra had changed with more asphalt roads, smarter shops and fewer rickshaws and bikes on the very busy highway. The five -star hotel, The Sheraton, where I had stayed and at that time the best hotel in town, no longer had the same privileged views over the Taj Mahal. It had also been dwarfed by even better 5-star hotels that had entered the marketplace.

The article I refer to above makes the following recommendations:

 

  • In India one needs to show warmth, patience and rigor in the selection of local representatives, and to be suspicious of anyone who says “yes” to everything
  • It is important to remember that the local currency (rupees) cannot be taken out of the country and yet the Indians are able to do what they please with their money in many of the countries that they visit.
  • The person who says “no” is the one to be taken seriously as he or she will probably stick to agreements and fulfill promises made.
  • Topics to be avoided in conversations are religion and Pakistan.
  • For westerners new to India, be prepared to be shocked once you step outside your “luxury” hotel. Life is very different even in the neighbourhood adjacent to the hotel. Constant harassment from beggars, beating down prices in shops, traffic from “hell” (the word “infernal” is used) and buildings that to our standards bring to mind a demolition site.
  • Staff selection needs to be run by a local expert; otherwise many mistakes will be made.
  • Corruption is a part of everyday life and according to the level of ownership in a project, a varying proportion of total costs need to be added to pay for commissions (bribes) and “tips”.
  • Labour Law requirements for companies with over 20 employees are avoided by setting up smaller companies with up to 19 employees. In these cases there are virtually no legal restrictions.
  • In well-established companies, strong traditions of loyalty and strength of personal relationship exist. In the “young generation” of companies the opposite is the case, lack of loyalty is a major characteristic.
  • The number of local feast days is very high (although comparable with Spain). The many different religions all need to be taken into consideration. The concept of an annual summer holiday is not common. More emphasis is placed on special family celebrations such as weddings and longer religious festivals.
  • Very few people have current accounts and the modern shopping centres are full of people window shopping, rather than buying.
  • The emerging middle class is still a drop in the ocean compared to the total population and less than 5% of households have a car.

 

Probably one of the biggest pitfalls for anyone new to India is an under-estimation of the scales of size and distances. Religion and spiritual values are ever present and for many this life is a mere stage in a much longer journey.  Their acceptance of death is a shock to many westerners and despite the terrible living conditions of millions of humble people, smiles are on people’s faces. One cannot visit India and remain untouched by the paradoxes of beauty, serenity and spirituality on the one hand and squalor, chaos and human misery on the other.

NextlevelI would love to see closer cooperation between Spanish and Indian companies. There are many opportunities, especially in the development of infrastructures, production of machinery, the automotive industry, chemicals and agriculture. Spain has changed so much in the last 30 years and much of this learning could be usefully exported to the growing Indian economy. Climatically, Spain and India are used to extremes and especially this year, Spain has been suffering its own version of the monsoon.  The Indians themselves know very little about Spain. It is very difficult for them to obtain visas for study or for tourism. The only way to practise Spanish, for those that are motivated to study the language, is with the ever increasing number of Spanish tourists who visit the main cultural sites. If relationships are to improve then it seems it needs to be a two-way process. There are no direct flights between the two countries. Spaniards are increasingly interested in Indian culture and people like the late Vincent Ferrer and the work of his foundation (www.fundacionvicenteferrer.org) have done much to highlight the difficult conditions of life in the villages.

There are lots of lessons still to be learnt and hopefully these will bring different types of wealth to both countries and growth for both in the future.

 

The article has been submited on 29th March, 2010, All Rights Reserved ©, SCIBC Business Review

LSchubert About the Author

Louise is English and works as an organisation consultant and executive coach with a particular interest in helping individuals and teams face change and overcome blind spots. She is fascinated by cross-cultural issues and helps others to discover how differences can be positive. She is a founding partner of Schubert Consulting which is based in Sant Cugat, just outside Barcelona in Spain.

Southern Europe has been home for Louise for the past 18 years. She first moved to Madrid, where she lived for 6 years, she then spent 12 months further south east, in Athens before arriving in St Cugat in 1999.

Louise began her career back in the late 70’s in hotel and catering management. After changing direction and specialising in training and human resource development, she held management positions in Human Resources for Liberty of London (retail) and with Novotel (part of the French group Accor), in England and Spain.

Amongst other academic qualifications she has an MSC in Organisation Consulting from Ashridge and is accredited as an Advanced Executive Coach with the Academy of Executive Coaching, both in the UK.

Louise is able to work in English, French and Spanish, she speaks German and has a good working knowledge of Catalan. Louise is married to Werner, who is Austrian, and they have twins: Natasha and Christian who were born in Madrid.


 

Comments  

 
+2 #2 Daniel - SCIBC 2010-03-30 09:49
Quote:
I would love to see closer cooperation between Spanish and Indian companies. There are many opportunities, especially in the development of infrastructures , production of machinery, the automotive industry, chemicals and agriculture.

The good thing is that SCIBC is organizing a conference promoting outsourcing & offshoring from India & China that will have place 21 of September 2010. More details soon on our web.
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+2 #1 Magi Foraste 2010-03-30 06:23
You are very right in your comments. It is really like that!

I travel very often to India, as we have a factory in Bangalore. It is amazing how fast India is changing in the last days!!
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