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View Full Version : what do you think of this?


jolly
07-12-2001, 06:09 AM
I want to open an i-development center just related to internet solutions like software, hosting and web web development.
The concept is somewhat like call center.
From i-development center anyone can outsource all the services.
Any one can give work from all over the world and this companies will do the development for these companies.
As I know lot of companies in India are doing the same things for the last few years.
In India the labour is very cheap as compared to othere countries like US or Canada. This will increase the margin of profit for the companies. And a wide range of services.
Please give your feedback.

brav0
07-12-2001, 07:22 AM
I want to open an i-development center just related to internet solutions like software, hosting and web web development...

As I know lot of companies in India are doing the same things for the last few years.

And I want to start a company that makes databases. As I know lot of companies in USA are doing the same things for the last few years, like Oracle, Microsoft, etc...

Too bad I don't have a business plan, in-depth knowledge of the industry, money to invest, an experienced management team, and afterall, seems like I am not even sure about my own idea since I am asking complete strangers in a forum dedicated to a completely different subject.

SoftWareRevue
07-12-2001, 07:27 AM
BRAVO ! !

:D

jolly
07-12-2001, 07:31 AM
There are more than million hosting companies and million development companies in this world.
And all these companies have there own prices and rates. As labour is very costly in US or canada so these companies outsource.
And what about if company can provide all the services under one roof with round the clock support at cheaper prices from the market.

BC
07-12-2001, 08:15 AM
You may think you can do it, but it has already been done....... If you have ever heard of ASPs (Application Service Providers) they do exactly what you described. However, recent surveys have shown ASPs aren't generating enough business and profit to be viable, simply because of the amount of investment + costs required, as well as a lack of understanding of the target audience (or simply poor targeting).

Unless you can demonstrate a proven business acumen, a profitable business plan, have all the technical expertise to handle any outsourcing problems that occur, etc. etc. the idea will implode faster than how a certain insurance company imploded in record time....... (i.e. not very long at all!)

jolly
07-12-2001, 08:23 AM
Could you please tell me something in detail about ASP.
There are so many reason why ASP are not doing good. The most important is the labour. If ASP is in US where the labour is pretty expensive.
Then comes the service if ASP can provide good service.
Please name few ASP you know.

BC
07-12-2001, 08:32 AM
Originally posted by jolly
Could you please tell me something in detail about ASP.
There are so many reason why ASP are not doing good. The most important is the labour. If ASP is in US where the labour is pretty expensive.
Then comes the service if ASP can provide good service.
Please name few ASP you know.

Actually labour wasn't my point, because labour only makes up a small portion of the overall picture. It's the costs/investments, infrastructure and the targeted marketing that play a major role in ASPs. If you lack one of the three above, your ASP will fail - simple as that. Service plays a major part, but that doesn't necessarily bring in customers.

With investments/costs, we are talking about millions of dollars to startup, and that means either raising it on your own, or relying on angel investors (who have generally stopped investing in ASPs, such is the breakdown in the ASP model) to get you started.

You're essentially talking about an Alabanza model (without the outsourcing), which may make sense.... But have a think about the number of servers they run, the automation tools they have, the solid infrastructure they have to run their systems..... And have a guess how much they required to start up, keep cash-flow positive, while maintaining 100% service levels/uptime/etc.

You must also be familiar with the latest buzzwords (B2B, B2C, P2P, client-server architecture, 3-tier, e-infrastructure, etc.).

You should have a look at http://www.internet.com/sections/asp.html for more info on ASPs and you will get a number of ASP companies from there.

I used to work with an ASP/e-commerce company, so I would say I have a pretty good idea of what is required for an ASP to succeed. And trust me, I personally wouldn't do it. Far, far too much investment costs + work required.

Summary : Good idea, a b*stard of an implementation.