Category Archives: Outsourcing Articles

5% of an employees time should be spent on training & refinement

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Many workers all over the place have no sense of communication or responsibility. The reason is because their managers are too busy to teach them, or perhaps because their managers don’t know HOW to teach them or what is important to teach them.

Communication skills are a typical problem for technical people.  They need regular coaching on how to get back to people. How to pick up a phone and dial 10 digits (programmers are genetically incapable of this task by the way).  How to return an email with relevant content.  How to schedule their tasks so they don’t run behind schedule. How to keep in touch with clients and let them know when there is a problem or delay instead of keeping them hanging.

“Not flaking” (not forgetting & keeping track of things) skills are important for lower level managers.  I find that lower level project managers seem to not keep track of what is going on, and clients will be kept waiting for months only to find out that no headway has been made on their projects.  Assistant managers need to be coached on how to KEEP TRACK of everything and not flake.

If you don’t currently have a mentoring and coaching program for all of your staff, you should figure out how to create one.  Your company would do so much better if you did a little training (or a lot of training).  Employee output could go up by 20% without spending an additional dime on them simply through training!

Good luck and use your innovative skills

Should you have a niche in your outsourcin​g market?

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Many outsourcing companies have various specialties that are popular.  This is normal. But, how many do their work in a special way that separates them from the pack? Would it be a good idea to do so?  Survival in business can be achieved in several ways:  Being the best, being first (having longevity in a particular industry or invention), and being different.   It makes sense to be super in any case, but being unique can get you certain types of clients more easily — clients that tend to like the specialized way that you perform your work.

Lets say that there are ten call centers in India and let’s say that they are all more or less run the same way.  They will be competing on price, and on who knows who, and not much else.  But, what if one call center developed a reputation of having flexible terms.  What if another call center had girls with very pleasing voices.  Perhaps a third had workers who received two hours a day in coaching and that they were by far the most capable and refined in the entire marketplace.  As you can see, there are may ways to differentiate yourself from the competition, and developing a long range brand identify might make sense if you do a good job of it.

There are ways to screw up your brand image.  If you try to promote your workers as the best trained, but still do shoddy work half the time, you will quickly lose your reputation.  Be an extreme of what your branding says you are, and then nobody will ever question you.  If you are cheap, then be extremely cheap.  If you are good, then be really good.  If you specialize in being multi-lingual, then offer 20 languages, and have really good people speaking all of those languages.  You get the picture!

Dedicated Workers

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There are different types of workers.  Some bring their work home with them, while others clock out at 5pm and forget about work alltogether.  Those who succeed typically feel responsible for their work regardless of whether they are in the office or not.

A portrait of a super-worker is the person who lugs a laptop with them wherever they go.  If they go on vacation, the laptop comes with them so they can stay up to date with at least some of their tasks.

Getting workers to this level of responsibility is not easy, and in many cases not possible.  But, if they are made to feel that their ultimate success or failure is tied to their reliability to getting things done, then they might start working when they are not expected to be working.

If workers feel that they will never get ahead no matter what, then perhaps they will not take any responsibility after they clock out.  Instilling a sense of long range job security, recognition, and respect being tied to stellar performance is a job that a good manager needs to master.

Getting workers to care

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It should be a science to figure out how to get workers to care.  Managers often study how to milk more productivity out of their staff, but do they study how to make workers care?  One elderly manager in the United States told me that caring / integrity is the FIRST thing he looks for in a worker. He told me that if a worker lacked skills, that skills could be taught, but that teaching integrity was not generally possible.

So, perhaps starting out with workers who care makes sense.  But, a more interesting topic to discuss is how to optimize worker caring.  There are many ways to get workers to care more.  Making them feel like a part of the company and a part of the long range membership of the company makes  alot of sense.  Some executives include all workers in profit sharing and stock options.  With huge companies, I personally feel it makes more sense to have workers reap a long term benefit if their particular department does well in addition to the long term wellness of the organizatin as a whole .

Another aspect that is typically purposely ignored is tying the workers into how the customer feels.  Todays workplaces are segmented with the salespeople selling,, and then forgetting about the client after the sale is made.  The technical staff does its part without interfacing with the customer, and the accounting department doesn’t see a human face of the client either.  Having workers be more part of the whole transaction in an emotional sense seems to be practical.  If programmers see a client when they are happy that things went well, or frustrated when things don’t go well, perhaps they will care more.  If a salesperson is held responsible for selling the wrong thing to a client and actually talks to clients throughout the business relationship, they will have a very different attitude.

Integrating segmented companies is important in business.  Departments need to be able to seemlessly communicate with each other, and all workers need to be in touch with clients in one way or the other. My idea is very unpopular with many companies who don’t want most of their workers interfacing with clients at all.  Additionally,, most workers don’t want to be bothered talking to clients and simply don’t have the social skills to do so in any case.  But, there must be some way to have all workers get some sort of feedback of how the customer’s life is improved by their work, or inconvenienced by their failure to do what they are supposed to.

6 Habits of Successful Outsourcing Companies

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I have been talking on the phone to some of the most successful BPO outsourcing businesses in the market. I bet that you are very interested to know what I learned about their habits. There are those who beg for BPO “processes”, and those who get so much work, that it would make you dizzy. So, what is the difference?

(1) Knowledge at your fingertips
The larger and more successful BPO companies have someone knowledgeable answer the phone. The phone rarely goes to voice mail. The person you talk to on the other line can answer most of your preliminary questions, and make you feel confident that their BPO company can get the job done. The difference I see is that some companies have a very sophisticated and knowledgeable person who will talk to you, while others merely have someone “adequate”, who knows the basic answers. Some people at BPO offices I talked to sounded a bit bored, while others sounded like amazing people. I talked to one gentleman who had been a consultant who impressed me. I asked him how he learned to speak English so clearly. He told me how he did consulting all over the United States and London. He is a breed of his own, and guys like him would be too expensive for most of us to hire. But, if you want BPO business, hire someone really good to answer your phones.

(2) 24 hour phone answering?
I just talked to a company that does IT related BPO processes in Delhi the other day (my day — their night). The guy on the other end of the line sounded bored, but he spoke good English and answered all of my questions. His company had hundreds of workers, so they were doing many things right. I prefer to speak to exciting and fascinating people, but someone who gets the job done is much better than 95% of the OTHER outsourcing outfits do.

BPO Business these days is global. If you want to catch calls from other countries, it might matter WHERE your office is — however, it matters more WHEN your office is. If you have an office in Delhi and you answer your line all night long (which is daytime in America), then you can get American clients. You will need an American phone number so you don’t scare off the Yankies. Having an office for BPO in America with locals answering the phone will make you sound local, but to me, knowledge sells much more than having an uneducated blonde on the other end of the line. Have someone who can answer basic business questions who answers the phone. Don’t make prospects work to talk to a salesman. You wait on them, they shouldn’t have to wait for you.

(3) Having the staff to do the job
Big companies have large staffs. They have staffs of different levels of experience, and different specialties too. No matter what type of BPO job you throw at them, they have the availability to get the job done. If you want to get ahead in your outsourcing outfit, you had better have people who are ready to jump on new projects, otherwise you will not get the new projects. Think ahead.

(4) Being flexible
I have notice that many of the companies with 20-40 workers can be very rigid. They want tight contracts that protect THEM, but put their client in a very constricting position. I noticed that the larger BPO outfits are often more flexible about terms. Since they have such a huge staff at large companies, they don’t NEED to lock you into a constrictive contract. In any case, you should be in business to make life easy for your clients if you want to have enough clients to have 200 workers. Think like the big guys — do you think they don’t philosophize about how to please their clients better?

(5) Having higher level workers
Many companies that offer BPO in India have low-end staff, and perhaps a few senior workers who have four or five years experience. If you want to get serious clients, please consider having high-end staff available. Some projects require higher level skills, while some require a mixture of levels of skill. If you only have low-end people, you will scare off the serious clients. If you want to grow your business big, you need big clients, and big clients want smart workers. Think ahead! Big companies in India who do outsourcing have a higher percentage of high skilled people, and they are more accessible than in medium or smaller companies where those “experts” are likely to be tied up on some other project and too busy for your new clients. If you want to get clients like the big guys, give them some skilled workers. It makes all the difference.

(6) Good communication
Some companies in India have great workers, and write good emails, but have a horrible phone manner. Little BPO companies in India almost always are horrifying on the phone. No respectable client would hire them to even pour a cup of coffee with their bad communication skills. The bigger companies seem to have a much better command of phone etiquette and English. However, even many huge companies in India still are far from perfect on the phone — phone manners seem to be a problem across the board in India. But, I will say one thing: the larger BPO companies are MORE LIKELY to have staff with good English and good phone etiquette than the smaller companies.

Don’t interview the salesperson

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Don’t interview the sales person.

If you do business with high tech companies, or other outsourcing companies, the salesperson is the worst person to talk to.  They only care about scoring a sale, and will answer yes to all of your questions.  If you talk to the technical manager, they might say no to all your questions, but at least that is honest.

In the long run, you will be dealing with project managers, staff members, and perhaps the boss himself. But, after the sale is made, the salesperson is out of the picture, so why deal with this person in the first place?

Sure, you are forced to deal with the salesperson, but you can ignore everything they say (recommended), and then have your second interview with a real person who gives real answers.  You need to interview all members involved in your work if you choose to hire an outsourced company.  If you can’t communicate with the programmers, or if the call center workers don’t communicate the way you like — you will be sorry — and the salesperson will not be in a position to help either.

Can a techie be trained to be a people person?

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It is so common in companies that the customer service people have nice personalities, but are idiots when it comes to anything technical. They will get the answer wrong 90% of the time, making them nothing more than a pretty voice on the other end of a pretty phone.  Sure, it is nice to talk to someone nice, but how long will you be patient if they give  you wrong answers most of the  time.

On the other hand, there are people who are technically gifted. These folks tend to be very anti-social. Getting them to say hi audibly can be a challange.

So, my philosophical business question of the day is:  Is it easier to train a sociable person to be technically competent — or is it easier to train a technically savvy person to have a good personality — or ANY personality for that matter?

I think that people are not so neatly defined as I make them out to be, and everyone has a different configuration of traits and unique qualities.  I think the answer here could be on an individual basis, but I am learning more towards educating the sociable types.

My experience tells me that antisocial people can not learn to act like humans.  I tried for years to get programmers to have conversations and invited them to many dinners (that I would pay for), and they refused every time.  It didn’t matter if they were Americans, Indians, Chinese, or Martians, their personality traits were the same — anti-social. So, we have to take those who are considered to be “a people person”, and train them how to be a little less idiotic when someone asks them a technical quesiton.  My experience tells me that there are “people people” who are also very gifted technically, and many who can engage in deep thought and sophisticated problems.

I remember a guy named Josh who was the most pleasant person I think I have ever met. He gave very intelligent marketing advice, and gave great answers to questions that were completely outside of his training as well.

If you take ten people people, and train them how to really understand technical issues, you might find that three or four can really excel at answering technical questions.  They might need double the training that their technically experienced counterpart might need, but if they can retain the knowledge and use it for a few years, then the training pays off.

Hiring people with great personalities?

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Hiring people with great personalities?

Most companies follow the same hiring strategy. Hire anti-social geeks to do technical work, hire a people person to do customer service, and those are the basics.  But, you tend to create large divides in companies that are built like this.

I always realize the vast difference in the feeling when I leave the room with the sales, marketing, and customer service people and go into the room with the technical people.  It goes from friendly to  depressing in only seconds.  My question is, what would happen if you employed a new strategy — a strategy where you create a work culture that is really friendly.

Employees choose where to apply to, and good employees have many choices.  India’s economy has a labor shortage (for the first time in recorded history), and good workers have many choices as to where to work.  So, if you have a company that has a reputation of being fun to work for, then you might be able to attract the best workers even if you don’t pay the most.  Remember — job satisfaction is high on people’s lists these days.

So, what if you had an attractive office, and hired people with great personalities — even the computer nerds would have colorful and engaging personalities (if that is possible — there is a first for everything).  You would be really mastering the art of attraction here.  You would attract great workers, and your workers would quit less, because they liked working there.  You would also attract more clients.

Some clients interact a lot with the employees at particular companies, while others interact mostly by email.  For the clients who talk with people, imagine how they will feel if YOUR company has personal people at every level of the company. Most companies won’t let you talk directly with a programmer, but what if YOUR company has friendly programmers who actually don’t run for cover when a client is around?

In today’s business world, people often ignore the personal aspect of business, and this is the worst mistake they could make. Deals are won and lost, often because someone doesn’t like someone else!  Sure, they want someone who can get the job done, but they might also want to feel comfortable with the people involved.

I wish someone would try this experiment and get back to me — but, someone already has. Cliff Bar hired gung ho and enthusiastic people to run their energy bar company.  For those of you overseas, Cliff Bar makes health bars that have oats, chocolate, and fruit flavors, and they use brown rice syrup and other ingredients to hold the bars together. Hikers and outdoor enthusiasts typically love to eat Cliff Bars (me included).  The result was that they had a company where everyone was happy and felt good coming to work, even if they only made minimum wage!  Can you create this atmosphere at your company? It is worth a try.

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Power in business is about having choices

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Power is about having many choices

I was watching television last night, and an old businessman said, “You don’t get power, you take it”.  This is somewhat true.  But, real power is all about having choices, and good choices.  If you have a million dollars, but there is only one place that serves food where you are, and they want half a million for a hamburger, your money will soon run out. So, money alone is not power.  However, if you know how to use your money, then you have a lot more power.

On the other hand, if you only have $50,000, but there are twenty places selling hamburgers all competing with each other, and you can get your hamburger for 20 cents, and hopefully a good quality burger too, then your money will last a long time.

We live in a strange world, where money is not backed by anything. A few decades ago, American currency was backed by a gold standard. Now, it is backed by nothing, and the money supply can grow when banks “create” more money to loan out. Sure, there are laws regulating how fast they can create money, but money is just arbitrarily created, and the money itself has no inherent value.

One year you might have $100,000, and the the price of gasoline could become $20 / gallon, and all your money will be lost paying for gas.  Another year you could have $200,000, but then fall ill, and your medical expenses could take your last penny.

How does this apply to your BPO business?

In a BPO business, your power is your ability to hire good people to work for you. Rather than just hiring people and settling on them, it is better to hire more people than you need so you can get rid of the underperformers.  Most workers in any country these days are underachievers, and you need to avoid these types like a disease.  Seed and weed is the agricultural expression to describe what I am talking about.

Hiring BPO companies

Also, if you are hiring outside BPO companies to work for your company, don’t just settle for one. Do a lot of shopping around and take notes about their performance. You don’t know a company until they have worked for you a little bit. Then, you will have an idea of how they perform.

The main point of this article is to put a lot of effort into making sure you have choices, and knowing how good those choices are — otherwise you are powerless and helpless!

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Zen and the art of pep talks

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Zen and the Art of Pep Talks

Being a manager is more than just about showing up for work and assigning work to your various employees and subcontractors. It is more than just checking up on people, and more than just about shaking hands.  Psychology is a huge factor in being a manager, that can not be overlooked.

Working at a large company or tiny company doesn’t always make sense in terms of who does what and why.  In an entrepreneurship, the sole proprieter does all tasks in the business, unless they require some technical expertise in which case he hires an IT firm to help him. In a larger outfit, workers graduate to be managers if they are any good.  In a way this makes sense, because you need to be an expert on the work you do before you can supervise it. But, supervising is a completely different skill set, and they don’t teach this in school.

At school, if you studied business, you might study marketing theory, management techniques, and accounting. But, try out your skills in the real world with real people, and you will quickly realize that you are up against much more than what the text book said. You need to not only manage the actual work people do, but manage their attitudes as well.  What you might not realize, is that if a particular someone has the wrong attitude, your whole department could be doomed!

There are different types of attitude challanges that an employee might have and as a manager, you need to be able to quickly identify what type of psychological roadblocks the employee has, so that you can give them a pep talk that teaches them not only how to get through their roadblock, but how critical it is that they do.  Many employees don’t realize how serious an attitude problem could be.  It can kill a work relationship, and is contagious as well in many cases.

Imagine that in a room, there is one employee who doesn’t like being there and gives dirty looks to everyone.  Let’s assume that the others are not so pleased to be there either. The negativity spreads and circulates around the room — you can’t have that.  The manager can try to give regular pep talks to the most negative employee to get them to be more cheerful.  You could focus on how well that employee is doing, or how exciting the next project down the line is going to be.  Focus on positive things, and the positivity will spread — by definition. If the negative employee is incurable, or too high maintenance (pep talks don’t come cheap these days), then maybe it is time to say good bye.

What if you have a customer service rep who feels helpless even though they are an expert in their field?  This happens all the time!  I have a phone rep who is amazing, but lets customers walk all over him. Then, he gets all bent out of shape after they walked all over him.  I had a long time with him today and explained that he is the king. He has the knowledge, skill and experience, and these other people who are bothering him can barely tie their shoes. I said, “They should treat you with respect otherwise you shouldn’t even waste a nanosecond with them”.  I asked him if a professor, police man, border control agent, or other authority would let a civilian talk to them like customers talk to him — and he thought about it and said, “I guess not”.  Then, I said, “So why do you get upset when these ignorant types start antagonizing you?”.  I told this guy that HE was the authority, and that he sets the terms, and other people have to conform to his standards — or the discussion is over.  After this pep talk (which actually took over an hour in its entirety), my rep had a completely different perspective, and felt 200% better — just like that.

You might have a third type of situation where a good employee is just not giving 100%.  You could compliment this person on what their achievements have been, and what you think they can do next month.  Let them know that a little more effort could change their whole life — and that this is big.  It could mean promotions, more respect, and a completely different life in the future, and all it takes is another perspective, and a little extra effort.  The main ingredients here are enthusiasm, and the fact that the change you are asking for could have such huge results, that people’s whole lives could be permanently changed as a result.

Pep talks are life and death for a manager. If you don’t know how to do this, you need to study this like you study for a mid-term.  In a sense, giving good pep talks is sales work.  You are convincing someone to do something that they wouldn’t otherwise do, and giving them earth-shaking reasons why it is so important to do that thing you are proposing.

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Secrecy as a business strategy

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How good is secrecy as a business strategy?

I noticed that many business owners I know are very secretive.  There are many things they can’t tell me, and other things that they won’t disclose until a later date.  Many people think that if you tell them too much, you will expose your business secrets and lose a lot.  Many people think that when you go for a business lunch or coffee that you should keep the conversation very limited and hide a lot of information. One company refused to give me any information as to how they operated and asked me to read their FAQ page which also had very little information.  So, is it good or bad to conceal information?

The Feng Shui School example

My best example of this topic is of my Feng Shui teacher.  This teacher was one of the world’s foremost experts in his field, but also a good businessman.  By the way, The ancient Chinese art of Feng Shui, is a topic I love to write about, and it concerns how your building and natural (or unnatural) environment effect your health, life, and business.  This teacher told us how one of those “other” teachers gave out all of his feng shui secrets in the first two lessons, and nobody came back for the third lesson.  So, my Feng Shui teacher decided to only give out a few secrets per class, and really go into detail about his personal experiences analyzing charts of particular houses and businesses who had particular attributes that corresonded to those particular secrets or shall we say, “rules”. In any case, he devised a system where there was class one weekend per month, and you could keep coming back for two years, and then take the entire seminar series all over again to deepen your knowledge.  His school was booming.  The only flaw in his system was that my questions were not adequately answered, and the solution offered was for me to wait a year and retake the particular class I didn’t understand at great expense.  I said good bye.  This strategy of giving out secrets a little bit at a time is very culturally Chinese — fast enough for some — too slow for many.

Giving secrets as a way of developing trust

The business world revolves around trust — or the lack of it.  People give big money to those they trust, but nobody trusts a stranger or a crook.  Knowledge is hard to find, so people like to associate with those who give them knowledge.  If I want to attract a client, my strategy is to solve their problems, and then I will win them over.  People come to me with a question, and I will try to give them an answer that is much better than they expected.  Then, I invite them to email me if they have any more needs.  People love this, and then are very willing to spend money buying a place on my directory.  So, giving out precious knowledge can get you huge returns and helps build lasting relationships.

Giving out secrets helps — but, how many secrets is the right amount?

If you are too secretive, people might not trust you.  In my experience, companies that have secrets, often are hiding a lot of information. I have never had a good experience with companies or groups that systematically keep me in the dark in regards to critical information.  But, if you give out TOO MUCH valuable information to someone, they could steal your business secrets and use them against you.  In my experience, giving valuable information to others will get YOU ahead as much as it gets the recipient.  Just don’t give them any information which could result in them putting you out of business or directly competing against you.  You always have to keep some of your secrets to yourself no matter how generous you are!

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The concept of lower middle management

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The concept of lower middle management

It is a well known fact that labor in India is plentiful, especially technically accomplished labor. But, with a short supply of qualified management to go around, many companies in India are very disorganized.  If workers are not managed properly, they will submit work as completed when many steps in the work were omitted or done incorrectly. This has been my personal experience. American workers do this too, but not quite to the extent that workers in India do.   In India, the salary for a skilled project manager or middle level manager can be the equivalent of US$40,000 per year, or perhaps 1.5 Lakhs per month in India.  This is roughly 7x the rate that a company would pay for a single experienced call center rep or programmer. My numbers could be off because I have not been in India for a few years, but the numbers are close enough to make my point.

So, there is no solution, right?  Not so.  India has plenty of people who love to nitpick others, and mind other people’s business.  Even those who are not techno-saavy might be qualified to micromanage others if they have good organizational skills.  The older generation in India typically lacks technical skills, but many have good thinking and organizational skills, and would be very qualified with a little training to micromanage workers.  Additionally, this new class of micromanagers that I am proposing might  be able to perform work tasks at even LESS than the cost of the programmers or call center staff members since no technical expertise would be necessary.

The key here is to teach these lower-middle managers how to make check lists of what to check. If a worker has a particular assignment, being able to find the records of what was assigned, when it was to be finished, and what the specifications are would be the first step.  Checking to see that everything had been accomplished to specs would be the next step.  Creating evalutaion statistics and saving them would be the most valuable and final step.  These micromanagers (nagging pests) could revolutionize companies by letting them know who the reliable workers are and who the unreliable ones are.  Score sheets could be assigned to workers each month.  Maybe Praveen might be a 90% accuracy rate for his work and get a promotion while Surrendra might only get a 20% accuracy rate and be fired.

A joke to finish this post!

I’ll send this article with a joke — but, a realistic one.  Ramesh shows up at a job interview to be the “nagging representative” or glorified micromanager — whichever you call it.  The boss reviews Ramesh’s resume, has a brief chat with Ramesh, and is not so impressed. The boss says, “Don’t call us, we’ll call you”.   The next day Ramesh’s mother shows up and barges into the office.  She has a checklist of all the things her son is good at and she rattles off the checklist.  She then says, “You were supposed to call Ramesh at exacly 1pm IST today, but we never heard from you, how are we supposed to rely on companies like yours?”.

Needless to say, the boss was very impressed with Ramesh’s mother’s organizational skills and thought she would be perfect to manage his workers even though she didn’t know the first thing about programming.  So, the boss said, “You’re hired! Welcome aboard. When can you start?”  The mother said, “Ramesh will be here bright and early tomorrow morning”. The boss said, “No, I can not hire that clown, I am offering YOU a job — you are perfect.. You are organized to a T, and you don’t allow anyone to get away with a single flaw, not even a missed phone call”.

Then Ramesh’s mom Vidhya goes to have chai with the neighbors — Mr. and Mrs. Reddy.  Vidhya said, “I can’t believe I got a job… I am the head nagging agent for Krishnatech Infosoft!”.  Then Mr. Reddy said, “Oh, I am not surprized, you are excellent at nagging”.  Then Mrs. Reddy said, “Prakash, watch your mouth!”.  Then Mr. Reddy said, “Oh sorry, what I meant was that you are very … assertive and punctilious”. Mrs. Reddy responded, “Please forgive Prakash, he has had a few cups of masala chai too many today!”  Vidhya said, “I know people accuse me of nagging too much, but now I can get PAID for nagging — the boss said he needs this type of personality, providing I don’t over do it!”

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