Globant Case Study

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1. Discuss the nature of the challenge the team faces as they seek to build a global company. What are the strengths and weaknesses of their model? Challenges faced by Globant: • Finding suitable IT workers: When outsourcing IT workers the three most important aspects Globant looked at was; overall capabilities, total cost and ease to communication. Finding adaptable and capable IT workers was a major challenge to Globant, as overcoming the language barrier from country to country was perceived to be challenging. • Competitive Challenges: Mature markets can pose difficult barriers to entry due to existing competition. Competition with the firms that already have long term established relationships with their customers was one of Globant's major challenges as they were a newer IT company in a field where many of their competitors (such as India) had been in the industry for approximately 5 – 7 years, with a solid reputation in the industry and low labour costs due to the fact that they had perfected their business model. Those relationships between the readily established companies represented a great deal of invested time and resources and are extremely difficult to break the great barrier to sales with those customers. • Maintaining their existing customers while expanding and selecting target market: Globant became worried that would not be able to handle the number of new customers coming and spreading themselves out to thin, so geographically they focused on their good reputation with existing customers in the US markets where they had already established a base and then over time spread to other areas without losing touch with the customers or losing their good reputation. Globant chose four main areas they were going to target namely; high-Tech, Travel, Telecom and financial services. Globant's Strengths: • Convenience Lower Travel Costs: Globant

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