Offshore not just for big players

Small firms will join the move to send jobs overseas, and be rewarded with startup capital
By John Challenger
|Canadian HR Reporter|Last Updated: 07/28/2005

Outsourcing work to overseas firms is normally something only big companies do, right? Actually, it is the small business sector that may one day become the largest outsourcer to foreign countries.

Small firms may be left with little choice — it will be a matter of survival, especially for those in the information technology sector where a company’s highest costs can be payroll. The movement towards increased offshore outsourcing can, perhaps, be best seen in Silicon Valley where companies and start-ups of all sizes contain costs through outsourcing. In fact, it would be virtually impossible to start a new IT or software company without offshore outsourcing.

“Companies can go to India and get highly skilled workers with PhDs for the equivalent of $15,000 to $20,000 (US) per year. You can have a team of five to six programmers in India for about the same cost as having one or two in Silicon Valley,” said Venetia Kontogouris of Trident Capital, in Westport, Conn.