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Smaller businesses now looking overseas.

Publication: Crain's Detroit Business
Publication Date: 15-MAR-04
Format: Online - approximately 1151 words
Delivery: Immediate Online Access

Article Excerpt
Byline: Laura Bailey

Attempting to cut costs, small businesses are following the lead of big companies by forming joint offshore partnerships or by finding overseas vendors.

The potential 50 percent-plus saving on labor costs is huge, but so is the learning curve for a small company venturing across the water for the first time, said Robert Verdun, CEO of Southfield-based Computerized Facility Integration L.L.C.

CFI has vendors in several Indian cities who do data entry, Verdun said, but before getting it right, CFI suffered through two failed attempts at partnerships since 1996 with companies in Russia and India.

Building any offshore relationship is painful in the beginning, agreed Wayne Burkan, COO of Logic Solutions Inc., an Ann Arbor-based software and software services company that started an office in China about two years ago to do internal software development.

"Even two years ago, it was only the (original-equipment manufacturers) and tier-ones; in the last six to nine months, we've seen a major push by small and midsize companies to establish relationships in...

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