DISCUSSION ON COLD CALLING OFFSHORE
ON cold calling for business development partnerships a discussion on Linked In centered around the following question
What is the best way to approach companies to discuss partnership between companies? Our business is content conversion which is an excellent value added service to data management software, but the business development folks just blow you off. Any suggestions?
Some important reactions to my response posted in the comments below
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@Krishnan: In my opinion, the geographical gap has nothing to do with the BD trying to creating the right match in IT business.
ReplyDeleteI agree.. The internet has opened up enormous opportunity knocked down numerous old barriers including geographical. So I agree the geographical gap is no longer a hurdle. The hurdle that remains is the SAME hurdle that an 'onshore' provider would face except that an onshore provider cannot compete on price... BUT is price the ONLY benefit an offshore provider can offer? What other benefits can an offshore provider offer that onshore provider cannot compete with?
@Krishnan: Do you mean to say there could be a communication issue like language, accent etc?
This was an issue but today telemarketers from India are fine.. I have no problem understanding.. PLUS often it's something I WANT to hear MORE about.. SO I learn a bit and we even have a bit of laugh... and now with linked in... I'm sure many will speak, write and spell far better than I do. So no not seeing a hurdle there.
@Krishnan: Robert, could you be more specific?
Okay.. (as I mentioned earlier).. the reason I ask is that it was brought to my attention two weeks ago that an Offshore Provider will beat an Onshore Provider on price but still faces hurdles accessing a buyer in Europe, US and Australia.. O/Provider IS:-
* competing on price with best practice in china, india, brazil, phillipines, croatia
* competing on government attitudes to security, IP
* competing against timezones that are more convenient
* competing against providers with better access to local (onshore) knowledge (laws, regulatory practices etc etc)
* competing with exiting preferred offshore providers that have packaged a deal
* competing with offshore providers (that went say the Sharon Drew Morgan way) and have got full buy in from all offline decision makers, policy makers, stakeholders, existing contracts with existing onshore providers etc
In short the 50% price advantage suddenly looks like it could get eroded
I did some quick research last week and notice an additional hurdle that an offshore provider might face is around an onshore buyers fears of stepping into the unkown AND/OR fears due to a past experience such as
* Inaccurate work effort estimate
* Poor Onshore Management
* Poor Provider Qualification
* Critical Stakeholders Bypassed
* Internal Misalignment
* Eratic Decision Process
* SLA not reflect what matters point to point end to end business objectives NOT kept PACE with change STIFLED clients business
* INDecision InflexibleOneSizeFitsAll Missed Our Business Value Mark
* Failed to facilitate the buying decision FIRST so overlooked the extent of internal change issues that needed to be addressed
* Failed to get offline behind-the-scenes-issues squared that was needed to get buy-in
Another comment I noticed was around the fierce competition that offshore providers faced forcing them to bid at prices that put themselves at risk... not just themselves but also put the onshore client at risk because everything was cut so fine that the slightest mishap could cause the project to tank... and this served NEITHER party... that it would be better to take eyes off price alone... be happy with 10 to 15% saving... AND shift eyes back on becoming partners, stakeholders in the objectives of the clients business.
So I'm thinking even if the Offshore BD lucks a 'send-me-some-info'... the sale still has quite a few hurdles to clear before it is a sale.
Admittedly the above was quick research and I not verified or ratified... It was just something to get a feel for what issues are out there.
So I guess this is what I was getting very curious about ie
(i) WHAT are the top 5 hurdles offshore BD's are experiencing given that they are using Krishnan's 'consultative' approach today? (ii) how are they cleared?
Krishnan R.V. says
ReplyDeleteSome really good points, Robert.
I agree with you about the challenges faced due to: Government attitudes, timezone advantage, near shore/Onshore service providers having an edge.
...
But about the Local Law and Regulatory practices, the Offshore providers are quite careful about adhering to these regulations. This being a sensitive issue, Legal aspects are always consulted.
Regarding:
* Inaccurate work effort estimate
* Poor Onshore Management
* Poor Provider Qualification
* Critical Stakeholders Bypassed
* Internal Misalignment
* Eratic Decision Process
* SLA not reflect what matters point to point end to end business objectives NOT kept PACE with change STIFLED clients business
* INDecision InflexibleOneSizeFitsAll Missed Our Business Value Mark
* Failed to facilitate the buying decision FIRST so overlooked the extent of internal change issues that needed to be addressed
These aspects are quite possible with an Onshore provider too... And I regularly come across complaints like "With an Offshore developer, we don't have the convenience of having a developer/Programmer Across-the-room with whom you could work face-to-face"
Now what if a company in New York finds two good IT providers in California and Bangalore, India?
I don't see any reason why they shouldn't choose the Bangalore company because the company in Bangalore would offer quality IT solutions at a good price.
And one thing that is commendable about companies in India is their willingness to work in the US timings whenever required. It is as good as hiring a US based service provider because the company in India is available throughout the US work hours.
And about the fierce competition and risky prices, it sure does happen. When Offshore companies pop-up in millions, such a risk is bound to happen.
It is up to the Onshore client to wisely select the right Offshore service provider. They must be wary about false clientèle details, employee strength, infrastructure etc. mentioned in the Offshore companys' websites. And very importantly, they must seek the reference of the existing clients of the Offshore company.
In my company, we insist that our potential client must verify with our existing clients in USA about our work and Quality standards. This is the final phase in the Sales pipeline because once we win their trust, the Sale is bound to close.