4 benefits of networking: takeaways from the BPIAJ launch

Although the world of business can be a cutthroat affair, a business can improve its standing in the market if it is prepared to co-operate with other players.

Yesterday, 20 September, the official launch of the Business Process Industry Association of Jamaica (BPIAJ) was held in Kingston, Jamaica. The BPIAJ will represent the interest of the business process outsourcing and IT-enabled services sector in Jamaica, and will be a critical focal point and partner of the Government in growing and strengthening Jamaica’s outsourcing industry.

As expected, there were tributes, illustrious speeches and a general recognition of the significant milestone that had been achieved by launching an outsourcing industry association – the first of its kind in the English-speaking Caribbean, and a sign of a maturing sector. However, the launch of this association has been years in the making; and while the outsourcing sector is a multi-billion industry with several blue-chip players, there are a number of takeaways to which the average start-up or entrepreneur may relate.  Here are four benefits of networking or cooperating with other industry players.

1.  Sharing experience is invaluable

Entrepreneurship and starting a business can be exhausting, but also extremely isolating. In addition to the time and focus required to get the business off the ground, many entrepreneurs are wary of (or even avoid) associating with persons they perceive as competitors. Although that posture might appear reasonable, the ability and opportunity to share experiences – war stories, useful tips, encouragement, etc. – can be invaluable in environments where there might be few avenues for business advice or support. Sharing experiences not only helps persons to improve their businesses, e.g. to avoid certain pitfalls, and revisit critical strategies, by extension, it can also raise the quality or standards of a particular industry or niche area, thus strengthening the individual business’ and the collective’s competitive advantage.

2.  It can be easier to influence change as a collective

With very few exceptions, and to varying degrees, most countries worldwide do not provide optimal conditions for business creation and/or development, e.g. there can be a lengthy business registration process, complicated business filings, high taxes, etc. Although the lone voice lobbying for change might be considered courageous or admirable, frequently, there is greater strength in numbers.

Being part of a group, be it formal or informal, can be especially useful when there is need to engage Government, particularly in the Caribbean, to implement certain changes. Policymakers tend to be reluctant to support initiatives that appear to benefit the odd individual. They are more inclined to consider favourably proposals for which there has already been a general consensus on the issues and way forward, by the affected parties.

3.  It can be more lucrative to negotiate as a collective

Following from the previous point, the individual entrepreneur or business can also benefit considerably from the collective bargaining power that a group might enjoy. Similar to a trade union, this clout can be used across a broad range of situations – from advocating for change, to bulk purchasing on behalf on the group members.

It is important to highlight that the Caribbean Community (CARICOM), the Organisation of Eastern Caribbean States (OECS), and even the Eastern Caribbean Telecommunications Authority (ECTEL), all allow their respective member countries to take advantage of the benefits that can be derived from economies of scale and scope, when they share a common interest.

4.  Your true competitors might not necessarily be local industry players

Too often, businesses owners or entrepreneurs limit their focus to other players in the local market, who they fear could steal their business ideas, or gain a larger share of the market. Although other businesses in the same market might indeed be competitors, that view might be a bit myopic. Thanks to globalisation, and the impact of the Internet on business and customer interaction, a broad range of processes and services do not have to be resident in country in order to be delivered to the customer.

For example, although many in the ICT/tech community consider “outsourcing” a bad word, the fact of the matter is in order for businesses to remain competitive they must manage their operating costs. As a result, outsourcing has been a widely employed in cost management strategy. However, its use is still escalating, to the point where businesses are prepared to contract out all aspects of their operations, save those deemed critical, and must be kept in-house.

This ability to outsource a wide range of business processes, such as finance and accounting (including payroll), legal, human resources, and logistics, is now possible due to the availability of quality and affordable telecoms, especially high speed broadband. Hence the true competition against which a business may need to strategise may not necessarily be in the same country, as highlighted in the video clip below:

In summary, businesses must be prepared to network and cooperate with their fellow players in order to better position themselves against international competition. This competition may come in the form of international companies looking to establish a presence in new markets, but also from local customers offering contracts to businesses based overseas, which may have more attractive and cost effective offerings than those being made in country.

Image credits: JAMPRO;  Master isolated images & Teerapun (FreeDigitalPhotos.net)

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