Sales · Technology

Is there a demand on emerging IT outsource businesses?

Ilya Petrov With 8 years in the IT industry on the management role looking to establish my own business.

April 18th, 2019

Just curious what are the opportunities these days. Is it expanding or shrinking?

Dane Madsen Organizational and Operational Strategy Consultant

April 18th, 2019

Agree with @Zeeshan but you need to have a differentiator because the space is crowded. Price is not the only issue. You should also target an industry, space, or subset to get the best response. I get many "offers" for services that do not apply to me (I am a sole practitioner consultant with very specific skills and do not need such services) that just throw everything at the wall hoping one sticks.

Industry specific knowledge is a great differentiator. Do you have experience in a target space you can leverage the learnings you have developed to new clients, such as common and important tech platforms, or subsets like supply chain automation?

Language fluency (including nuances) is a killer. Knowing the local language and how the target communicates is on you, not them.

Time zone issues also are important. Can you be available when it works best for the client? They have a "normal" working day that is important to them to which you must adapt.

Special skills you do not see in competitors applicable to the target space, not only technical, but process and planning skills. Being able to clearly understand client needs, extracted from them in their parlance, then producing an understandable tech spec/scope to capture those in a narrative form so the client is sure you get what they want is a skill I see lacking in many similar companies. This also requires you to be good at bringing up issues they may not have considered so that the tech does not build them into a corner.

Finally, critical is to be able to tell clients what they need to know, not what they want to hear. I have seen many of my clients told about timelines and costs to get them to engage, only to see both badly misscoped.

Hope this helps.

Juan López Lorenzana Founder & CEO at Profit Solutions Provider, a Managed Services Provider located Mexico City

April 18th, 2019

Every company of any size from 1-2, to 50+ users needs IT Support. I have been giving IT Support from more tan 10 years , and I can see that with the adoption of the lastest trends of Cloud Services like Gmail or Office 365 the most important services to offer are backup and security. I have seen users lost all their information by ransomware and they didn´t have backups, or others that have backups that were infected and lost. I am sure the opportunity is in giving the iuser all certainty that their information is going to be secured. And you as the solution provider, must test a lot of tools that are in the market to accomplish that.

Hope the best in your new business. I'll be glad to share some experience that may help you.

Paul Garcia marketing exec & business advisor

April 18th, 2019

It depends on where you are and what portfolio of services you can deliver. There is still a steady demand for outsourced IT, however with a crowded market it becomes increasingly challenging to enter and to maintain customer loyalty.

If you identify a particular niche in which you can provide extraordinary service, you have an advantage, but if you're a me too business, it's throwing money in the wind. This is why research is so important. You not only need to understand what other companies are failing to do well, but why customers seek outsourced IT in the first place. I guarantee at least half your assumptions are wrong.

IT outsources is almost a commodity at this point. That means pricing has a downward pressure and service expectations have an upward pressure. To survive or enter you really need to understand what your competitors don't. And you have to deliver consistently, exceeding expectations, while holding prices in check. It's hard, because more often than not, there's someone willing to promise the same thing for fewer dollars.

IT outsource companies notoriously have employee retention issues. And because there are so many to choose from, customers often treat the service provider as disposable, ready to switch at any moment. Suppliers try to suppress this a little with contracts of some length, but if you've agitated your customer throughout, you can be sure they won't renew, and they'll spread negative words about you instead of sending you referrals.

My suggestion is to do a lot more research and find some area that is really underserved, not pick to jump into a saturated market. Doing so is unnecessarily hard. It might not be your favorite thing to do today, but being comfortable is not the same thing as being profitable.

Zeeshan Maniar Founder | Co-Founder E-Commerce Store Babynest |

April 18th, 2019

It's definitely expanding but so is supply (IT Companies) which makes things really difficult for a new player to enter and survive in this industry.

uday bhaskar Tech guy looking for a business guy.

April 19th, 2019

Hi, I think there is definitely demand, but instead of body shopping, we need to provide more value. We can look at Cloud and DevOps segment and help companies adopt securely. I have some ideas around this and currently trying to establish a business. We can catchup and discuss more if you are interested. I am a techie by the way.