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new software development company

I have to write a 500 word essay on the following scenario below. Can you help?

Two of your best friends Hector Ramirez and Yash Perdorna have approached you with some questions about starting up a new software development company. Both of your friends have large families who would like to invest in the company. In addition, Yash is originally from Banglore, India and wants to locate some R&D Staff there and a small sales force to tap into the Indian market. Given the situation your friends have come seeking your advice. They would like your recommendation on the type of corporate governance that they should use including any disadvantages that they need to be aware of. In addition, they would like to tap into their families desires to invest in the company but they are not sure what would be the best way to go about it. They would like a financing proposal that includes not only the advantages of the plan but also the disadvantages. Finally neither man has done much international commerce and would like to know at least two things that they need to be concerned about with it and one needs to be tied specifically to India.

Be sure to properly cite your references in your paper.

Solution Preview

It is indeed a good idea to start a software development company with back office or fulfillment/R&D operations in India to obtain comparative advantage offered by India in terms of cost and quality of information technology workforce. However, as Hector and Yash wants primarily target the US/North American market, the best way to go about it will be to set up a front end company, such as a partnership or LLC firm in North American and set up a fulfillment/back office center R&D or subsidiary in India. This has been the most popular or preferred choice of operations for software development companies operating out of US and having their development or back office center in India.

Let us first start with the issue of corporate governance. As the role corporate governance is gaining more and more importance in today's' corporate world, it becomes imperative for Hector and Yash to maintain highest corporate governance standards for their company's operations in USA, as well as subsidiary's operations back in India. This is important for couple of reasons. First of all, the prima facie clients of the company will be in USA who will need to be convinced that they are working with an ethical corporation that ensures full integrity, privacy and confidentiality of client's data and information and is not misusing client's intellectual property. This issue gains much more importance due to the fact that IP standards or governing laws are not the best in countries such as India due to corruption, weak implementation of ...

Solution Summary

Two of your best friends (Hector Ramirez and Yash Perdorna) have approached you with some questions about starting up a new software development company

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