ONE would be hard pressed to find someone who hasn't heard of burgeoning economic powerhouses such as India and China. This is for a good reason: India and China - prominent players in a group of developing nations with big populations and increasing consumer appetites - are emerging, underdeveloped markets with big prospects for growing businesses. Just ask Springboard Research.
The IT research firm, started in 2004, counts global delivery and regional expertise among its competitive advantages. It is a third-party research firm which provides objective opinions, research and recommendations to IT firms. CEO Dane Anderson, who co-founded the company with long-time friend Chris Perrine, feels that their brainchild's small size gives it an advantage as a 'nimble' player in the IT research industry, estimating it as one that's worth an annual US$4.4 billion.
'Our business model is shorn of the 'legacy' suffered by older research companies established from the 1960s, pre-Internet. They are held back by their size and entrenched set-up, which drive up their costs and reduce their mobility,' he said. 'We're willing to tackle and tap into these small markets for our growth.'
Springboard says its low-cost set-up - 'prices are generally 35 to 60 per cent lower' than its competitors - allows it to deliver value-added, quality analysis to clients and let them keep their market research budgets low.
Global delivery
The company uses its global delivery mechanism to 'access the best talent anywhere in the world'. It has offices in far-flung locales such as New Delhi and Casablanca, and has established research centres in India and Morocco.
Each location was chosen for its specific reach to regional consumer demographics, and cheaper labour in some. Specialised functions are outsourced, allowing each employee to contribute their full expertise to the business. For example, analysts can concentrate on their research and telephone operators on speaking to customers - something which Mr Perrine feels makes the company special.
'You don't spend time talking on the phone or doing fieldwork if you can use it on a higher-value activity like meeting customer needs,' said the company's COO. 'Our approach optimises each location's branch output.'
Without the Internet, having the company sprawled across the globe would be problematic. Springboard makes heavy use of the world wide web in its processes: to better analyse and aggregate information, and consolidate research resources.
And unlike many firms which focus on multiple industries, Springboard focuses purely on technology and telecommunications market research.
This is one factor why the company has gone from strength to strength since its inception.
The headquarters was established here after assessing the transparent business climate and relatively affordable tax and cost considerations, and it is seemingly a good decision.
Mr Anderson shared that the company saw an approximate 75 per cent increase in revenue last year, but declined to reveal details, the reason being that it is still investing on growth rather than focusing on profits. Staffing has grown from 2 to nearly 60, and 8 global offices have been established.
There's more of the pie to be had - Mr Anderson is aiming for a similar percentage of growth this year, and expects to post revenue of $5 million. And in recognition of its efforts, Springboard was recently named 'Rising Star' in the global IT market research industry by research and advisory firm Outsell. It has also ramped up operations in the Middle East and Africa quite considerably with its Casablanca research centre.
This is part of the company's long-term goal to become a global firm, something which is dependent on recruiting senior analysts to expand research coverage, as well as increasing access to funding. It wants to expand to cover the global emerging markets and move beyond its reputation of being specialised in the Asia-Pacific markets.
Listing plan
Currently a private company, Springboard is aiming for listing within the next five years, after the initial growth period is over and the business focus can be shifted to profit-making.
In the meantime, however, it is gaining revenue from firms based outside of Asia like the US, which patronise Springboard to tap on its competency of Asia-based knowledge. The evidence? Singapore-based firms now constitute only 30 per cent of its revenue.
Of course, the good growth these first few years has brought with it some attendant challenges. Mr Anderson said that as the company expands, it is important to manage the growth properly and effect a proper shifting of roles to suit an enlarged staffing structure. Most importantly, he wants to keep the 'flat' structure which has been important in giving each Springboard employee a sense of ownership in the business, while keeping grips on the entrepreneurial spirit. The transition period, however, has been a 'happy problem'. The company intends to keep to its philosophy of building a team, training and mentoring it across borders.
'We'll be keeping to our tried and tested processes. In fact, it's our business structure which will help us through this phase of the business,' said Mr Anderson.
'Ultimately, we are a service business and this is the gist of what's been assimilated into our culture: if you join our company, you can take part in the growth and we can all grow together.'
Agreed Mr Perrine: 'Other bigger firms drive big buses, but we're building our bus from scratch. That is what makes us unique as a business.'
This article was first published in The Business Times on Jun 10, 2008
