Offshore startups

Most of the IT companies with a sound offshore model had started their operations in two fundamental ways. One, start with a business solution supported by IT for a manufacturing concern in west. Build it well, make it a success, partner with that company, make this solution a successfull one and adapt the solution for other companies with similar requirements. As the cash flows, extract generic knowledge of providing business solutions and expand your network. This process is not as easy as it sounds. The first step is always difficult. It requires huge effort from the IT solution provider to grab the project. Who will trust the IT company that never provided any solution before? Ofcourse, the easier way would be through contacts. If someone already worked at client's place whom the client knows and can trust, then there is a good amount of possibility for the IT company to get a footing. The second way I would say is identify a gap in the industry, try to bridge that gap with the help of a new product. Now, to get this product in right shape, partner with a company that needs this product most. Once the product is stable, start licensing it. License and maintenance revenues will feed the company.

Though the above two models are red ocean strategies (scroll down in my blog to find out about red and blue ocean strategies), it is quite difficult to find the right market to sell.

-- PS: I may be publishing an un-finished post.