I am currently in the start-up phase of my business, and after some digging, I found that most of my competitors consist of companies located overseas that pay their employees pennies, and offer dirt cheap pricing. My company will offer similar services, but more industry specific and personalized solutions, as well as employees with extensive experience - much more than what an outsourced company can offer...but will this be enough? I dont want to throw in the towel, but how can I compete?
I can offer the validation steps to see if what you are intending to do will work:
1. Are your / your competitors customers willing to pay a premium for resources that have extensive experience?
if not, then
2. Do you still make enough money to support the business by hiring more expensive experienced employees and offer the product/service at the same price as the competitors?
or
3. Would you be able to offer something more than your competitors that they cannot because they have offshore resources that the customers value and will be willing to pay more?
If the answer to any of the three question above is a firm "YES" you have a chance of winning the market. Else, you should go with the same delivery strategy as your competitors.
The only glitch is, once the competitors start seeing you win in the market and because they are potentially sitting on more cash than you they may catch up pretty quickly to delivering from on shore resources.
Answered 11 years ago
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