In any situation when there is money to be made quickly, all kinds of folks rush in. VCs and other financial folks are the first to zoom in. They come in with OPM ( Other People’s Money , pronounced as opium ) and it can be as heady as the real thing and make folks do and think weirdly.
OPM props up new entrants who can indulge in the right rhetoric with little execution savvy and experience in the industry get into the business. Top level executives join them hoping to get a career break together with stock options piled in. They see financial freedom. Employees join in based on the antecedents of the top team. OPM makes the folks all around have a ball all the time. HR policies go out of sync with industry practices.
Clients get to them for want of a better due diligence process. VCs once invested are all interested in making their investments look good and bring work to their door. But ultimately, IMHO lack of experience shows. It separates the men from the boys.
Customers come for the sell speil but stay for the execution and delivery execellence.
Slowly a kind of burndown starts occurring. Bad news starts hitting the press. Folks say, ‘Oh…the BPO was another fad and died away’. What happened was that bad investments started showing their true colors. The good ones pick the remains, if desirable, consolidate and grow.
What remains for the folks who were part of the OPM group are the fond memories of the parties that they enjoyed in the ‘good old days’.
Venkat
