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IT offshoring – How small and mid size firm can be successful June 7, 2008

Posted by Bipin Agarwal in IT Offshoring - Future Direction.

There are lot of small and mid size IT firms every where. On a revenue basis these are firms from 1M to 200M dollar in revenue or have 50 to 5000 people. When country such as India and others are primarily focused on exporting their services, it is critical that these firms can differentiate and focus their effort on a well defined market in order to be successful. This is even more important if there is a desire to have a business risk management or an exit strategy.

How do small company stay relevant in the long run? There are couple of options, one – join the party with the large company by selling some portion of the company, in return you get access to their HR, Legal, finance, marketing, operational processes, and sales network. Two – merge with another small company to focus on at least two or three niche market. Three – rapidly expend in the niche market to become the dominant player.

Given the uncertainty in the global economic environment, technology innovation, at this time I am more inclined to be a seller of the small and mid size company.


Bipin Agarwal



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