Discover How Powerful Offshore Cost Savings Drive New Start-Ups

Many of the top tier Venture Capital firms in Silicon Valley are beginning to convince more and more of their portfolio companies to outsource. This can mean anything from outsourcing software programming to India, manufacturing to China or Customer Service work to the Philippines.

Accel, a top silicon Valley Venture Capital firm is driving a large movement of venture capitalists to quickly, sensitively move their portfolio companies to tie in to cheaper offshore workers.

In fact, according to the San Jose Mercury news “droves of venture capitalists have boarded planes for flash visits to China and India to test the waters for alliances, investment opportunities and potential employees. Silicon Valley Bank, for example -- which underwrites loans to local start-ups -- arranges such visits.”

Top venture capitalist like John Doerr is actively wooing the Indian community to work with his companies start-ups.

In Accel's case, the VC believes that they and other VC’s are responsible to prepare their portfolio companies for global competition, which means among other things outsourcing. Doing this brings their investments maximum returns.

According the San Jose Mercury news, a recent internal survey of 45 of Accel's portfolio companies showed that 38 percent had undertaken moves to hire abroad. By 2005, the plan is to knock that up to 75 percent.

This does not mean that there are no risks. Many times projects can be delayed or problems created because of language problems and long distance management challenges.

The best way to overcome the challenges are for experience executives to manage the overseas operation. Secondly, all teams both in the U.S. and overseas must communicate with one another quite often.

FundedPlans works with several of the leading outsourcing firms. Ask your FundedPlans expert to learn more about how these experts can make a meaningful, affordable and powerful customized difference for you and your business.

Click Here to read the next FundedPlans Exclusive Article