GEO Expansion Strategy
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 & Solution Providers, the access to a new region plays a big role not just for a new revenue stream but to gain a competitive edge by updating their delivery models and additional talent pools.
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 cost and enables an agile operation that scales along, under a “safe landing” framework. Foreign Companies can run a pilot operation to test the market with local prospects and grow quickly if needed.
*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.
We support the entrance in the region of SAP Partners & Solution Providers by enabling a framework that lowers the resources needed, so it can be used to pilot the region or support a temporary customer roll-out in our several locations.
This safe landing framework handles regional compliance and minimizes risk for the foreign company. It can handle a 1-person team to full +500 employee deployments.
The Subsidiary also provides a local advisory role for Go To Market Planning, Solution fit validation, and adding senior key roles when needed for the first business opportunities.
Our experience and operation focus is in the North America Region, supporting foreign companies to start or grow their operation in Mexico and USA.
A Subsidiary is a company in a new country controlled by the headquarter. The scope of the operation will depend on the strategic plan for the new region.
Everscale’s enables a unique operational framework called Subsidiary as a Service, which has a similar approach as a Software as a Service (Saas) Model:
- Obtain the benefits immediately. Companies don’t need to wait months to start benefiting from the solution, they can start in days for a faster time to market.
- Less expensive. With Saas, the startup cost goes down abruptly as you don’t have to install infrastructure or hire an inhouse team to support it. By sharing common resources, you don’t need to hire local specialists full time, you use specialist as needed, as a shared service.
- Scale when is needed. Don’t need to buy the full solution and a package of users that you don’t know when you will start using each functionality and how many users you will actually use. Adjust accordingly with our economy of scale.
- Shorter contracts. Not sure of a long-term commitment, sign shorter periods and pay monthly as it is used.
- Any company can access it. Saas was created so Small & Medium Enterprises could access the solution benefits that the big corporations had (more on M&A Alternatives).
A Subsidiary as a Service has the added advantage that is a safer path when entering a new geography, as Everscale minimizes potential risks & liabilities of the region.
Everscale enables a unique framework for a specific industry with full capabilities, which includes a scalable local operation team with industry savvy executives for GTM strategies. It can add delivery teams with different engagement models.
When a Subsidiary-as-a-Service is recommended
- When the company is not ready to commit to a certain market for more than 5 years.
- Planning to start the operations with less than 20 employees.
- Need a team and resources quickly, instead of waiting 2-3 months.
- Prefer to pilot the region, before investing a large expansion budget.
- Need temporary capabilities in other technologies.
- You need industry specific knowledge for Sales Executives or Consultants, that a Regular PEO doesn’t provide.