Tag Archives: Overseas

How Can You Best Reduce Costs? Six Points

Situation: A company wants to reduce their cost of engineering. They are considering outsource options, both domestic and overseas, as well as remote offices in lower cost regions domestically. How can you best reduce costs?

Advice from the CEOs:

  • An emphasis on cost may be misplaced. Consider instead of where you can offer the best value to your customers or clients. Focus on and compete in best part of your market – the place where you possess the strongest advantage; then worry about cost.
  • Outsource companies can be dangerous partners. Assume you only profit from the first job that you give them and that they may be your competitor the next time around.
  • We’ve learned from the last decade of experience in Asia that cost advantages are often temporary. Salaries for top talent in India and China now approach those in the US. This experience is likely to be repeated in Southeast Asia.
  • Focus on high dollar services and opportunities.
    • There are limitations to offshore talent – especially in complex, multi-step development projects. Keep high dollar projects in-house because they justify higher prices and margins.
    • When you outsource, negotiate retainer contracts with additional charges for work above and beyond the scope specified in the retainer.
  • What do you want to be? Consider your options:
    • Become a project management company and outsource development.
    • Be a development company and just look for cost effective sources of labor.
    • Start your own outsource company – a split-off staffed by your own employees – and feed them work.
  • Before you invest substantial time or money, do a test.

How Do You Land Your Next Big Customer? Six Suggestions

Situation: A small company wants to land one additional large account per quarter. They utilize an array of marketing activities but aren’t sure where to concentrate their efforts. From your experience, how do you identify and land your next big customer?

Advice from the CEOs:

  • Landing large accounts is more of a relationship game than a marketing game. Develop a list of targets. Determine who you want to approach as the key decision maker, and work your own network and those of friends to gain a personal introduction.
  • If you and your principal target customers have operations overseas try to develop relationships between your and their overseas managers. Social networks abroad can be more accessible than in the US.
  • If you plan to introduce a new product or service, ask current customers whether they know of anyone who might be interested. This can prompt their interest or get you a significant lead.
  • Once you identify potential targets, conduct third party surveys of their industries. These can yield valuable insights into your targets’ organization and needs and help you better position your offering.
  • If a target customer has multiple divisions, initiate a relationship with a single division first and then leverage this relationship to develop additional business across the company. A number of small companies have figured out how to do business with multiple divisions of a single large company.
  • Trade shows are underutilized by many companies. Schedule meetings with target contacts In advance of the show. Even a simple visit to their booth can lead to a significant meeting. If you have limited resources, simply register as an attendee and use the show to network with potential customers.

Key Words: SMB, Customer, Acquisition, Networking, Social, Relationship, Overseas, Operations, Survey, Trade Show