Data Processing - Viable Business Idea?

[darrinm81]

Hello Forum,

First post but long time lurker. Looking for some feedback/guidance on an early idea.

We are looking at establishing a data processing business. We would target UK based businesses requiring high volume data entry and conversion work. We have already identified some potential customers seeking UK/EU firms to undertake this work.

We would look to outsource most/all work we receive to reduce costs and be competitive in the market. We are aware or various international operations that could process our customer data.

We know similar businesses exist but see some opportunities of being the conduit for linking UK firms to low cost labour.

We are very early stages of brainstorming but looking for some input on dealing with outsourcing client jobs overseas. Is this a feasible model should we be able to offer our customers something extra?

Can anyone recommend some places to get an idea of which overseas firms are reliable and worth approaching?

Thanks.

 

[Moneyman]

Anyone big enough to want to outsource dataprocessing would already look overseas and I cant quite see where you would be needed in the equation?

 

[businessfunding]

It's not really clear what you are adding to the equation.

as far as I can see your are effectively becoming a data input broker, but you don't have any contacts in the data input world. By the time your margin is added, would there be any real advantage to the client?

 

[darrinm81]

Thanks for the comments. Agreed there is always a possibility that customers may try and go direct to the outsourcing firm to conduct the work.

However we have seen several fixed price contracts being offered where it seems the customers doesn't care who does the work, as long as it can be completed within the period specified in the contract.

For example, contract may be 12 months paying £50,000. All the files can be shared electronically so no requirement for staff to be on site.

It is these contracts we would be trying to gain. We'd hope that if there is a contract market out there, then maybe we could also service small to large firms.

We are trying to work out all the parties involved to confirm if firms would be willing to pay us a premium to be that broker/conduit.

 

[Arhob1]

As others have said the Indian and Chinese etc data input firms will already be bidding for those tenders direct so not sure how you would undercut them.

A market for you might be smaller companies who have a load of data work who arent aware of what is possible by outsourcing (to you). But once they realise there is a benefit and they have gleaned all the benfits from you what is to stop them cutting out the middleman altogether.

Fundamentally you need some USPs that mean people will come to you and not others. I doubt that will be price so you need some other added value.

Good luck.