Catalytic Softwarea U.S.-based IT outsourcing firm with offices in both Redmond, Washington, and Hyderabad, Indiawants to tap

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Catalytic Software—a U.S.-based IT outsourcing firm with offices in both Redmond, Washington, and Hyderabad, India—wants to tap India’s large supply of engineers as contract software developers for IT projects. However, instead of just outsourcing projects to local Indian software development companies, as is the common practice of U.S. companies, Catalytic has developed a self-contained company community near Hyderabad. Spread over 500 acres, the community of New Oroville is a self-sustaining residential and office community designed to house about 4,000 software developers and their families, as well as 300 support personnel who supply sanitation, police, and fire services. The goal of this high-tech city is to knock down barriers that large-scale technology businesses encounter in India. By building a company community, Catalytic is trying to ensure that it has enough qualified employees to staff around-the-clock shifts. The company expects this facility to attract and keep top professionals from all over the world. Building a company town also solved the problem of transportation, which can be challenging for such a large workforce. Because of the terrible state of the local roads, the commute from Hyderabad—25 kilometers from New Oroville—would take almost an hour. Catalytic provides private homes with private gardens, all within a short walk of work, school, recreation, shopping, and public facilities. Each house includes cable television, telephones, and a fiber-optic data pipeline that connects to the Internet so that employees can work efficiently even at home. (Employees are awarded bonuses for working over-time.) New Oroville was designed to include four indoor recreational complexes, six large retail complexes, and ample green space, including five parks for outdoor exercise and recreation. You have just completed a job interview with Catalytic Software for a position as project manager and have been offered a 25 percent raise to join the company. Your position will be based in Redmond and will involve managing U.S.-based projects for customers. The position requires that you spend the first year with Catalytic in the New Oroville facility to learn its methods, culture, and people. (You can take your entire family or accept a pair of three-week company-paid trips back to Redmond.) Why do you think the temporary assignment in New Oroville is a requirement? What else would you need to know in considering this position? Would you accept it? Why or why not?

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