How to start an IT outsourcing company

There are so many different IT outsourcing companies in India, it makes my head spin — and so does the long flight to India!

But, how do people get these operations off the ground? (no, not the flight… the companies). It is hard to start an IT company. There are many types of skill sets that you need to run one, and you are lucky to have even one of the 20+ skill sets. You need great business skills, great people skills, sales skills, organizational skills, scheduling skills, hiring skills, analytical skills, investment skills, and also technical skills. So, where do you start?

My recommendation is to start an IT outsourcing company in one of two ways.

(1) Work for someone else and get to a management position for many years. Then, you will have technical and management skills. Those are critical for having your own business, although you will need a lot more skills than what you learn on the job. At least you will have some foundation for starting an IT outsourcing company.

(2) Work as a freelancer. Freelancers learn a lot about business skills. You will learn your skill, what to charge, how to organize your time, and maybe even how to hire others to help you when you have an overflow of work. If you hire the wrong person, your reputation will be ruined — so be careful!

What specialty should you choose if you are going to be starting an IT outsourcing company?

If you are smart, you will specialize in whatever you know most about. If you are excellent with databases, then stick to that. If you are an ASP whiz, then specialize in ASP. If you are great with Java script, then specialize in that. If your clients need other languages as well, you might hire additional help with related services so that you can offer one-stop shopping. But, try to offer a more economical deal for your main specialty, so that you can attract and keep more business.

Where should you get an office?
When starting off, there will be many challenges and hurdles. I suggest starting with a low budget. Get a cheaper office and keep your expenses low. To attract good workers, you might keep the office very comfortable and be nice to them. If the office is too horrible, and you treat your workers too horribly, then you will lose them and be out of business!

How many people do I hire when starting out?

Stick to hiring yourself, and use freelancers or on call help until you have enough business to justify hiring the 2nd person. Sure, that is not glamorous advice for someone to hear, but that is the truth, and you can not afford to pay 20 salaries when you have zero clients, right?

Good luck starting your IT outsourcing company.

Be an expert at this field BEFORE even thinking about starting up…

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