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The 3 Competitive Advantages of Start-Ups and Emerging Companies in Offshore Outsourcing

Author: Andy Schachtel

Posted: January 14, 2011

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Entrepreneurs running start-ups or emerging companies face a number of daunting challenges in gaining traction for their businesses and competing with established companies in their field: They may have limited capital, little brand recognition, few experienced staffers, no distribution network, credit or good will with suppliers.  However, new and emerging companies do have the advantage of being able to create new systems from scratch using the latest concepts and technologies without being weighed down by outmoded infrastructure or organization.  Here are 3 key advantages that start-ups and emerging companies possess in the implementation of an offshore outsourcing strategy in a country such as the Philippines.

  1. Outsourcing is more readily accepted by local staff.
  2. One of the biggest problems that established companies face when they begin an outsourcing project is getting local staff members onboard for the transition.  Colleagues may be losing their jobs; or at the very least there are shifts in focus and responsibility and changes in operating procedures that are forced upon local workers.  And if local and outsourced resources cannot work well together toward a common goal then the project is doomed from the start.

    New companies are able to integrate outsourcing from the very start and create a modular approach to their processes that allows for teams to be located remotely yet integrate seamlessly through robust communication networks.

  3. Money is not wasted on outmoded infrastructure.
  4. New companies have the luxury of building their systems from scratch with the latest technology.  Older companies may be resistant to investing in the latest infrastructure because of heavy investments already made in existing technologies.  Offshore outsourcing has benefited enormously from new technologies such as VOIP that enable enhanced remote collaboration for a fraction of the cost of traditional telecommunications.

  5. The process is more likely to be handled by senior management
  6. In today's economy, companies need to make decisions quickly and adapt to markets that change more rapidly than ever before.  Outsourced processes are no different: they often require adjustment and re-calibration to meet changing market requirements or evolving technologies.  Larger companies may be slow to adapt, leaving their outlying outsourced processes to age and become outmoded.  Start-ups and emerging companies are more likely to have upper management focused on all processes and able to make quick decisions to optimize their outsourcing.

Sourcefit Philippines, Outsourcing Blog: The 3 Competitive Advantages of Start-Ups and Emerging Companies in Offshore Outsourcing

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