Start Up Blog

The truth about digital offshoring

Posted in entrepreneurship by Steve Sammartino on June 13, 2010

BRIC nations (Brazil, Russia, India and China) are the buzz word in business for good reason. In the good news for us small entrepreneurs is that access is no longer limited big players. The internet has made it possible to have a global work force from launch date, and the same cost advantages that multinationals have had since they started exporting labour to China and other parts of Asia since the 1960’s. Anyone can do it now.

Before you worry about the ethics of ‘off shoring’ there’s some stuff we should know. Exporting labour overseas is ethically sound. It is beneficial both to the recipients and the providers of such work (us). The average computer programmer earns around $1000 a month in India. In the USA and Australia it’s more like $7000 a month. Unethical? Not really. The $1000 a month versus the average in India of $85 gives new information workers in India and very high standard of living.

When we inject money into developing economies we are increasing the living standards not just for our employees, but for their economy in general. In addition we have the option to pay them above market rates to create strong loyalty. We have the option  treat our people well and create important cultural exchanges and relationships.

Other peoples time is what we must leverage for startup success. A simple business fact time immemorial. Only now we have both currency advantage and access. The issue of moving jobs overseas is a crock. We live in a global age, an internet economy. We all buy goods everyday from overseas. Geographical barriers simply wont exist shortly. So we should just get on board. Protectionist attitudes are outdated. No one is sending kids down mines with digital offshoring. If local people are getting put out of jobs, then they’ve been earning too much for what they’ve been doing anyway. Their outplacement is inevitable.

Startup Blog says:

• Outsourcing is available to everyone, not just powerful companies
• Off shoring improves living standards
• Off shoring is ethical and important culturally
• We must embrace it, or get left behind. There is no choice.

twitter-follow-me

Revenue

One of our jobs in business is this:

“Make it as easy as possible for people to give us their money”

It’s already hard enough to convince people to buy our product or service, so why some businesses minimize payment options is beyond me.

cash-only

photo by Mike Monteiro

Cash only, just doesn’t cut it these days. Regardless if we are on line, business to business or in retail, minimizing the payment options has this simple repercussion: It minimizes revenue.

Live example is a café in Melbourne called ‘Journal’. I had a company breakfast there and they wouldn’t accept my credit card. They even had the audacity to say ‘Who doesn’t carry cash on them?’ Answer: plenty of people. That’s fine. I’m never going there again and they missed out on around $100 this week.

Startups ought make it easy to collect revenue.

Steve – founder rentoid.com

Tagged with: , , ,
Follow

Get every new post delivered to your Inbox.

Join 1,240 other followers