Offshoring web design to Bangalore

Abstract

The name of my company is Appelsin Web Design (AWD). The business model itself is simple – to exploit the price difference on web design by serving clients in Norway and outsource web design to India. So far I have outsourced all my projects to two workers in Mumbai, and I have been the mediator of the projects. I have no other employees in Norway. During these two years I have learned a lot about managing web design projects, but also about the difficulties and challenges that follows in this business, also known as information systems offshoring (ISO). I have now come to my 5th and last year of my education, and now it is time to scale up my business in order to make it robust and profitable so that I can make a living out of it. After my graduation in 2011 I want to work with my company on a full time basis, and perhaps hire people also. In order to expand my business I want to discuss the important question about which entry mode to choose. Should I continue to outsource web design, or should I establish a subsidiary (FDI) and create my own organization? Based on my research on the IT industry in Bangalore, I will decide whether or not if I should continue to offshore web design services, and if the answer to this question is “yes”, which entry mode to use in the Indian web design market.