For SW Vendors like Microsoft*, there is a shared opportunity with their partners to scale the reach of their joint solutions in new markets and access first the available customer whitespace.
For their Partners & Services firms, the access to a new region plays a big role not just for a a new revenue stream but to gain a competitive edge by updating their delivery models and accessing other talent pools.
*Microsoft GEO Expansion Program 2019.
“IT Global spending continues to grow and Enterprise Application segment leads the way in 2019 with an expected 10.3% annual growth, above the 2.6% average”.
Source: Gartner IT Global Spending 1Q 2019.
Geo Expansion Strategy
GEO Expansion is a strategy in which a business scales by expanding to additional geographic sites to access new customers and leverage the advantages the new region brings to the company.
Traditionally expanding to a new country required a large investment of resources & time, such as acquiring a local company or setting up a new operation from the ground-up.
Everscale turnkey subsidiaries lower substantially the investment required and enables an Agile operation that lowers operative costs and increases scalability, under a “safe landing” framework. Foreign Companies can run a pilot operation to test the market and scale quickly if needed.
Everscale Subsidiary-as-a-Service has built-in Enterprise SW capabilities and takes advantage of regional know-how, our group infrastructure and economies of scale, plus our partner collaboration platform.
A foreign company can use the local subsidiary for any operation the headquarter plans, as its their business. For our industry, the subsidiaries are best suited for:
Nearshore Center for US Delivery. It provides competitive pricing for delivery & support of solutions that have a mix of onsite & offsite project stages. Key advantages: Same timezone, cultural affinity, similar travel expenses & low attrition.
Expanding to Latin America via Mexico. We validate the solution fit previous the market entrance, lower the entry cost and accelerate the time to market by using our local network. Can quickly add key positions for strategic customers.
Follow & support a customer abroad. For customer rollouts in North & South America, teams can be deployed from your local subsidiary (it can be a temporary setup for the duration of the project).
We support our Partners in the new region for their Go To Market planning and execution, including the setup of delivery practices.
Our experience and operation focuses in the North America region, supporting foreign companies to start or grow their operation in Mexico and USA.