This rings true, but the OP's decision to burn his bridges is unfortunate. This is just how Indian bureaucracy is. It's a combination of 19th-century British Civil Service, crossed with 20th-century village socialism, implemented by 21st-century people who are just as confused as you are by the system they've inherited.
I've done and still do a lot of work in/for India -- mostly for the government and various quasi-governmental agencies. A couple of rules for having a successful outcome:
1.) Cash in advance: 10% to 25% the project fee, depending on my familiarity with the client. Expect to negotiate for 3-6 months before this is agreed to.
2.) Additional milestone-based payments, with a contract stipulating that no milestone will be delivered until the prior milestone payment has been received. Make sure that ALL project expenses are covered by these intermediate milestones.
3.) A final payment of 10%-25%, which is basically all margin. Expect to receive this 6-12 months late, and adjust your project costs accordingly.
This might sound unbelievably aggravating, but if you go in with these expectations then it's really not so bad. The bureaucracy just kind of washes over you eventually. (Oh, and tip #4: if you can at all afford to, pay somebody else to deal with the bureaucracy....). In truth, most Indians are tremendously honest people -- despite the impression that their bureaucracy gives -- and although I've endured screw-ups and delays that have been significantly worse that what the article describes, I've never not been paid. And in the end, India is a fantastic country with fantastic opportunities (and fantastic people and fantastic food), and it would be a shame to miss out on all that.
So I hope that this article (and others like it) doesn't scare anybody off India. Just calibrate your negotiations accordingly, and enjoy it!
I've done and still do a lot of work in/for India -- mostly for the government and various quasi-governmental agencies. A couple of rules for having a successful outcome:
1.) Cash in advance: 10% to 25% the project fee, depending on my familiarity with the client. Expect to negotiate for 3-6 months before this is agreed to.
2.) Additional milestone-based payments, with a contract stipulating that no milestone will be delivered until the prior milestone payment has been received. Make sure that ALL project expenses are covered by these intermediate milestones.
3.) A final payment of 10%-25%, which is basically all margin. Expect to receive this 6-12 months late, and adjust your project costs accordingly.
This might sound unbelievably aggravating, but if you go in with these expectations then it's really not so bad. The bureaucracy just kind of washes over you eventually. (Oh, and tip #4: if you can at all afford to, pay somebody else to deal with the bureaucracy....). In truth, most Indians are tremendously honest people -- despite the impression that their bureaucracy gives -- and although I've endured screw-ups and delays that have been significantly worse that what the article describes, I've never not been paid. And in the end, India is a fantastic country with fantastic opportunities (and fantastic people and fantastic food), and it would be a shame to miss out on all that.
So I hope that this article (and others like it) doesn't scare anybody off India. Just calibrate your negotiations accordingly, and enjoy it!