Globant Case

Globant Case

Question 1

Some of the challenges the team faces as they seek for global company are

Increase knowledge in Tier 1 IT service.

Hire proper personnel for the job.

Maintaining current customers while expanding to a new market segment.

Lack of knowledge about Argentina among many potential clients.

Outsourcing vendors needed to prove to their prospect clients that they can provide great service and that support important projects.

Large competition, large and small companies and the competition continues to grow.

Many of those competitors have years of experience in the field as well as loyal customers with a strong relationship.

Prospect clients often hesitate to outsource and were more reluctant to engage into offshore firms.

Multiple competitors that specialized on the same services and same market segment.

Low labor cost and growing labor pool.

Security and privacy vs Outsourcing.

Some of their strengths and weaknesses were:

Strengths

they felt confident that they had a better cultural fit with the US than Europe, Southeast Asia, China and Western companies.

Some of their competitors had no presence in Latin America.

They plan to offer IT and Consulting services together.

Travel experience may help reduce travel cost.

Weaknesses

IT services are the least likely to outsource with less than 2%.

High standards for selecting outsourcing vendors but they had very little to no experience.

No bidding experience

Referrals may not be a good option for this industry. (Clients dont always appreciate a sales pitch over the phone).

Question 2

Sales Cycle in Offshore Services

Request for proposal sent to potential vendors or direct request based on a previous working relationship, reputation, or referrals.

Possibility that it requires bidding; the lowest will win.

After the customer agrees with the proposal, perhaps a live presentation, reference checks and pilot engagement.

What...