7 Important Benefits for Indian ICT SMEs to Go Abroad
Many Indian ICT businesses have very innovative products and passionate leaders and innovators behind them. These products are game-changing and have the potential to positively impact the world. However, many SMEs in India, especially in the ICT sector face major roadblocks to fulfilling their potential and developing their products and businesses to a world-class level.
They lack funds to develop their products and businesses, and do marketing and research. They lack skilled human resources in the technological field. They lack skills and abilities and a supportive business ecosystem that helps them make use of the latest technology.
Innovation is the core of ICT firms and many ICT firms in India face a knowledge gap that can prevent them from keeping pace with the technological progress taking place globally. For such firms, the answer has been to go abroad and find an international business ecosystem in which all these problems can be solved.
Here are 7 benefits to Indian ICT SMEs that choose to take their operations abroad.
1. Recruit highly trained people
ICT SMEs that choose to go global through a country known for being a innovation hub, like Finland, can easily find and hire highly skilled people with strong proficiencies in the ICT sector. They have access to a local talent pool with high standards of education and experience and will be working with the most updated and technologically skilled people.
2. International Brand Image
It is a mistaken perception around the world that Indian businesses are lacking in technological advances and provide substandard products and services. By internationalizing and setting up their business abroad, an SME can gain an international brand image that makes it easier to market their company and products around the world.
3. Technology Transfer
Firms can collaborate with local partners, universities and government agencies and begin to gain better and more advanced technology. This helps the firm develop breakthrough products and also transfer this knowledge to their home countries, benefiting the home economy and helping to raise the standard of living.
4. Local Government Support
Foreign host countries are welcoming of Indian businesses as this creates job opportunities in the host country and revenue in the form of taxation. Hence governmental agencies are very helpful and provide support in the form of information and networking to register their business, find clients, partners, employees and more. This makes it easier for the business to set up operations abroad.
5. Product Innovation
By tapping into the local innovative ecosystem and hiring talented candidates, businesses are well on their way to developing their products to a world-class cutting-edge level. This helps them compete on an international level and find clients all around the world
6. Easier market entry to other countries
Once a company has established itself abroad and gained experience, it finds it easier to move to other countries. Should a company locate itself in a place like Helsinki, Finland, it can easily gather information and move to other European countries because of the free movement and open borders within Europe. It is also easier to enter into USA.
7. R&D Funding
Once an Indian business is registered in a foreign country, it has the opportunity to secure funding for R&D for product development. In places like Finland, it is possible to gain funding even without losing equity. Thus Indian SMEs receive substantial support and gain benefits from going international.
While going global is risky and challenging, the benefits can outweigh the cost, provided Indian ICT SMEs are well informed and prepared, and take advantage of every opportunity available to them. It is advisable for firms to work with a consultancy like PrEver Consulting to navigate the difficulties of going global. Provided firms are guided on their journey abroad, internationalizing can breathe fresh air into a struggling Indian ICT SME business.