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outsourcing for startups?

Filed in archive Entrepreneurship by tj on February 26, 2004

Fast Company also covers recent developments in outsourcing. What's surprising for me is that outsourcing is presented as a tool to make any company more competitive. Outsourcing can only produce results in certain environments and mostly it does not deploy many cost savings for small scale startups.
Often internal processes are far from fixed and knowledge about the whole company or product matters much. There is often not much to give somebody else in India (beside inbound calls maybe). So I wonder about this statement:

"Two-thirds of the portfolio companies at Mayfield Ventures, another VC firm, already have offshore operations. And Mayfield won't consider funding new companies without an offshore strategy, says partner Yogen Dalal. "All startups need to be as efficient as possible in getting their developments to market with the least amount of money," he says. "If they can do that by utilizing talent overseas, so much the better."
For more info about outsourcing see our new Outsourcing Weblog.


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