On October 31, 2023, the Reserve Bank of India (RBI) issued a master circular on the import of goods and services titled <a href="https://m.rbi.org.in//Scripts/NotificationUser.aspx?Id=12561&amp;Mode=0">Regulation of Payment Aggregator – Cross Border</a>.&nbsp;&nbsp;

According to the circular, the RBI will regulate all Indian entities facilitating online cross-border payments for the import and export of permissible goods and services. Moreover, these entities will be collectively termed Payment Aggregators Cross Border (PA-CB).

The circular comprises guidelines to streamline the existing cross-border payment framework in India. Previously, cross-border transactions were carried out through Online Payment Gateway Service Providers (<a href="https://www.skydo.com/blog/online-payment-gateway-service-provider-opgsp?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">OPGSPs</a>) as per a circular issued by RBI in 2015.

OPGSPs operate by partnering with an Authorised Dealer (Category I) Bank (AD Bank) and notifying the RBI. According to RBI guidelines, no formal license is needed to function as an OPGSP.

Hence, RBI has issued a circular to establish a concise and clear framework for cross-border payments. RBI will now oversee all cross-border payments in India related to the import and export of goods. The circular applies to PA-CB, PAs, authorised banks and OPGSPs.&nbsp;The PA-CB circular also denotes that there can’t be any new OPGSP.

This blog discusses the key provisions related to the latest RBI circular on the import of goods and services, RBI guidelines for payment gateway, and OPGSP guidelines.

Master Circular on Import of Goods and Services: RBI Bank Guidelines

The following are the key guidelines mentioned in the circular.

The following entities need to adhere to RBI guidelines/instructions provided in the circular.

Here are the key developments included in the new PACB circular.

Categories of Authorisation as per PA-CB Activity&nbsp;

Based on the cross-border payment activity undertaken by the PA-CBs, they can seek authorisation for one of the following three categories.

PA-CB, facilitating cross-border payments for Indian exporters, has to open an Export Collection Account (ECA) with an AD bank.&nbsp;

ECAs can be opened in either Indian currency or foreign currency. In the case of the latter, various ECAs have to be opened for different currencies.

The PA-CBs will credit all export proceeds in the respective ECAs. Additionally, export PA-CBs need to follow the below guidelines:

Similar to export PA-CBs, import PA-CBs have to open an Import Collection Account (ICA) with an AD bank.&nbsp;

They will collect the payment from importers in an escrow account managed by the payment aggregator. It will then be transferred to ICA and will eventually be transferred to the bank account of the foreign merchants.

These entities are allowed to directly onboard foreign merchants, e-commerce marketplaces, or other overseas entities that offer payment aggregation services.&nbsp;

Here are the guidelines Import PA-CBs need to follow.

Those PA-CB who engage in both import and export activities have to comply with the requirements for both Import PA-CB and Export PA-CB.

They also need to ensure that the maximum value per unit of exported or imported goods or services should be ₹25,00,000.

Non-banks who want to provide PA-CB services will have to seek authorisation from RBI. However, before seeking RBI authorisation, it is necessary to register with the Financial Intelligence Unit-India (FIU-IND).&nbsp;

However, RBI has issued the following net-worth criteria for non-banks providing PA-CB services.

The accounts of existing non-bank PA-CB who are unable to meet the net worth requirement will be closed by banks by 31 July 2024.

Snapshot Comparison Between OPGSP Circular (2015) and PA-CB Circular (2023)&nbsp;

Here are the key differences between the OPGSP Circular (2015) and the PA-CB Circular (2023)

Here is the process of seeking approval from RBI for existing or new PA-CBs.

Step 1: Draft the application through Form A, which includes the following parts.

Step 3: The RBI will process the application.

(RBI may raise queries related to various aspects such as shareholding, product processes, etc.)&nbsp;

Step 4: In principle approval from RBI.

Step 5: Filing of system Audit Report

(RBI may raise queries related to SAR audit observations)&nbsp;

Step 6: Final authorisation(state additional conditions that must be complied with)&nbsp;

The evolving cross-border payments environment and the emergence of several OPGSPs and other fintech entities encouraged RBI to issue the circular. Its main purpose is to ensure seamless and more transparent cross-border payment transactions.

Even though regulatory authorities are constantly working on making cross-border payment transactions seamless, transparent, secure, and quicker, businesses often face difficulties in receiving timely payments.&nbsp;

Skydo aims to simplify the cross-border payment landscape for businesses by automating various tasks and helping businesses open foreign bank accounts. <a href="https://www.skydo.com/?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=demo_click">Join Skydo today</a> to streamline your invoicing and financial management activities!

Q1. RBI’s master circular on the import of goods and services and cross-border payments applies to which entities?

Ans. AD banks, PAs, and PA-CBs involved in the online processing/settlement of cross-border payment transactions related to the import and export of goods and services have to comply with the guidelines mentioned in the circular.

Q2. What are various compliances according to RBI payment aggregator guidelines for cross-border payments?

Ans. All PA-CBs have to follow the guidelines provided in the circular dated October 31, 2023. Additionally, they also have to follow the various guidelines for payment aggregators mentioned under a circular issued by RBI on March 17, 2020.&nbsp;The circular includes guidelines related to customer grievance redressal and compliance with Baseline Technology Guidelines to ensure fraud prevention and risk management.

Q3. How can PA-CB seek authorisation for facilitating cross-border payment transactions?

Ans. AD banks do not need to seek authorisation to facilitate cross-border payment transactions. However, a non-bank PA-CB can seek authorisation from RBI by sending the application to the Department of Payment and Settlement Systems (DPSS), RBI, Central Office (CO), by April 30, 2024. PA-CB entities must fulfil the minimum net worth criteria before applying to RBI.

 Know more about RBI's circular that mandates payment aggregators to seek authorization for facilitating cross-border transactions by April 30, 2024.

BI’s PACB Circular: Key OPGSP Updates of 2024 to Note 

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Kunal Shah. Nitin Kamat. Bhavish Aggarwal.

Many aspiring entrepreneurs and businessmen look up to these successful company founders. The persistent thought when you observe them is how can you become a successful founder yourself?

Perhaps, you should start early at 19 years like Ritesh Agarwal of OYO? After all, he did build one of the world's largest hotel chains, operating across multiple countries. Deepinder Goyal scaled Zomato to over 25 countries. He focused on setting the <a href="https://www.skydo.com/blog/six-proven-strategies-to-propel-your-it-service-business-growth?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">long-term strategic direction</a> and identifying growth opportunities in international markets. You can do both or none.&nbsp;

In the realm of tech export businesses, innovation, and global reach are at the forefront. Thus, founders play a critical role in navigating the complexities of international markets. But how can you achieve this?

Here’s a list of specific roles and responsibilities that successful founders embrace. These are the open secrets to entrepreneurial triumph.

Foundational Roles of a Tech Export Startup Founder

In your tech startup’s early stages, you find yourself juggling multiple roles. Given the resource restraints, you must manage them and do it well. These roles include the following.

By wearing many hats, you will gain a deep understanding of all verticals, enabling you to better train your second line of leaders in the future. Moreover, the willingness to embrace different roles instils a sense of resourcefulness and agility, enabling you to pivot when necessary.

Let’s understand how you can execute some of these roles in detail.

The vision represents your startup’s long-term aspirations and purpose. It will influence every decision you make and give direction.

Generally, founders craft a roadmap and approach to realising the vision by analysing the competitive landscape, identifying target markets, and defining the company’s unique value proposition.&nbsp;

This <a href="https://www.forbes.com/sites/forbescoachescouncil/2020/12/15/how-to-develop-your-corporate-vision/?sh=6065ffe31396">Forbes article</a> is useful for creating a step-by-step vision.

A well-crafted strategy to execute this vision statement provides a framework for decision-making, resource allocation, and prioritisation, ensuring your startup moves toward its vision with purpose and focus.

A talented and dedicated team is the driving force behind achieving ambitious goals and surpassing expectations. Michael Gurdley’s <a href="https://twitter.com/girdley/status/1507707700741697537">Twitter thread</a> sums it up quite well. Founders must fulfil this crucial role by building a cohesive and high-performing team.

Once you have a team, it is time to lead them well. The following tips will help you sustain your team members.

Speakers like Simon Sinek have repeatedly professed that <a href="https://twitter.com/simonsinek/status/1359944838226001925?lang=en#">money is the fuel</a> that enables businesses to reach their goals. Ashneer Grover’s book Doglapan further supports this statement and explains how a large part of his work growing BharatPe (and now Third Unicorn) is securing funding - round after round.&nbsp;

If you need to raise funds for your business, follow these tips to get started.&nbsp;

Bootstrapping and Alternative Funding Sources:

In addition to external investments, alternative funding sources such as grants, accelerators, or crowdfunding help you get cash without diluting equity. Assess the viability of these options and use them wherever possible.&nbsp;

Regardless of your source of funding (investor or bootstrapped), regular financial management is crucial. These vital steps include the following.

4. Nurturing Customer and Business Relationships

Customer service is everybody’s job - including the founder. Elon Musk is famous for <a href="https://www.indiatimes.com/trending/social-relevance/elon-musk-replies-to-customers-complaint-on-twitter-554800.html">addressing customer complaints</a> himself. Similarly, many organisations like <a href="https://basecamp.com/">Basecamp</a> have policies to have everyone work in customer service roles for a few days every year.

In the global landscape of tech exports, establishing trust, understanding diverse cultures, and delivering exceptional customer experiences are essential for success. Founders can do three things to help their case:&nbsp;

In fact, the father of capitalism, Adam Smith, writes in his book <a href="https://admiredleadership.com/resource/the-infinite-game/">Wealth of Nations</a>:&nbsp;

“We only need to attend to the recipient of our product or service, and the interests of the company should come second. That maxim is so perfectly self-evident that it would be absurd to attempt to prove it.”

Founders of tech export startups often serve as the public face of their companies, playing a crucial role in marketing and sales efforts. Your personal brand and reputation will impact the company's image and future. Here’s how.

As the human species evolved with time, founders must evolve as the business grows and faces new challenges. You must adapt, learn, and develop your skills to effectively lead the company. Follow these tips to evolve as a founder.

Learning from the Greats: Insights from Successful Founders

Some of the greats shared their wisdom on how to cultivate the right mindset to run a business. Let’s understand their mindsets that created successful organisations.&nbsp;

1. Jason Fried: <a href="https://amzn.eu/d/54N9U3s">Rework: Change the Way You Work Forever</a>

Authored by the co-founder of Basecamp, he explains how minimising distractions and providing ample time for deep work enables teams to produce high-quality outcomes.

2. Naval Ravikant:&nbsp;<a href="https://navalmanack.s3.amazonaws.com/Eric-Jorgenson_The-Almanack-of-Naval-Ravikant_Final.pdf">The Almanack</a>

A successful angel investor, Naval emphasises bootstrapping and creating a cash flow-positive business rather than relying solely on external funding.&nbsp;

3. Dharmesh Shah: <a href="https://www.onstartups.com">Cultivating Company Culture and Driving Customer-Centric Growth</a>

Dharmesh emphasises that the company's values must align with its actions, fostering transparency.

4. Sridhar Vembu: <a href="https://thoughteconomics.com/sridhar-vembu/">Self-Reliance and Long-Term Vision</a>

The Zoho founder advocates for minimising dependencies on external factors, such as venture capital, and focusing on building a sustainable business that can weather market fluctuations.&nbsp;

5. Girish Mathrubootham: <a href="https://www.forbesindia.com/article/take-one-big-story-of-the-day/girish-mathruboothams-billiondollar-dream-for-freshworks/66911/1">Customer Service and Constant Innovation</a>

The co-founder of Freshworks focuses on providing exceptional customer experiences as the foundation of building a successful tech export startup. &nbsp;

6. Clayton M. Christensen: <a href="https://amzn.eu/d/1LHUTFB">The Innovator's Dilemma&nbsp;</a>

This book explores the challenges companies face in disruptive innovation and how to navigate them.

7. Phil Knight: <a href="https://amzn.eu/d/cwPQpi5">Shoe Dog</a>

This memoir by the co-founder of Nike offers insights into entrepreneurship, perseverance, and building a global brand.

8. Peter Thiel: <a href="https://amzn.eu/d/9c9g8EC">Zero to One</a>

The author, a German-American billionaire entrepreneur and venture capitalist, provides insights on startups, innovation, and building successful businesses.

9. Eric Ries: <a href="https://amzn.eu/d/bYZnupC">The Lean Startup by Eric Ries</a>

This American entrepreneur focuses on lean principles, experimentation, and rapid iteration in startups.

10. Ben Horowitz: <a href="https://amzn.eu/d/dwnXHwy">The Hard Thing About Hard Things</a>

As an American businessman and investor, Ben offers practical advice on navigating the challenges of building and leading a startup.

Incorporating these insights into your tech startup can contribute to developing a strong foundation and a path toward long-term success.

Q1. How can a founder set a clear vision and strategy for their startup?

Ans: A founder can set a clear vision and strategy for their startup by defining core values, understanding market needs, and fostering a collaborative team culture. Regularly reassessing goals and staying adaptable ensures alignment with evolving business landscapes.

Q2. What is the significance of team building for a startup founder?

Ans: Team building is crucial for a startup founder as it fosters a collaborative environment, enhances communication, and aligns the team with the company's vision. A cohesive team is more resilient and innovative, driving the startup's success.

Q3. How can founders evolve and adapt as their startups grow?

Ans: Founders can evolve and adapt as their startups grow by staying open to feedback, continuously learning, and delegating tasks effectively. Embracing change, staying agile, and fostering a culture of innovation are key to navigating the challenges of growth.

Q4. What role do founders play in customer service and relationship management?

Ans: Founders play a pivotal role in customer service and relationship management by setting the tone for customer-centricity, gathering feedback, and addressing concerns. Building strong customer relationships not only fosters loyalty but also contributes to the startup's reputation and long-term success.

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The Blueprint for a Successful Tech Export Business

Starting a new tech export business is like building an Iron Man suit from scratch. You need to plan brilliantly like Tony Stark to develop cutting-edge technology, a strong business strategy as sturdy as the suit's armour, and the determination to soar high in the global market, just like Iron Man himself.

But when planning to start a tech export business, you need to think about market competition, legal and regulatory compliances, business strategy, financial planning, and much more! Most tech business owners don’t know where and how to embark on the rollercoaster of launching a tech export business.&nbsp;

According to a <a href="https://www.embroker.com/blog/startup-statistics/">study</a>, the tech startup industry has the highest startup business failure rate, at 63%. How can you avoid such a pitfall?

Let’s navigate through the eight essential elements you need to have in place before launching your tech export empire.

#1. Identify the Market Opportunity: Your Roadmap to Success

By conducting a comprehensive market analysis, you can effectively identify the challenges and untapped opportunities within the market. Start by identifying the customer problem that your innovative tech solution can solve and make that your starting point.

For instance, say, you specialise in cybersecurity. Through market research, you discover that small businesses in the US market struggle with affordable, user-friendly cybersecurity solutions. This unsolved problem presents a golden opportunity for you to develop cost-effective and intuitive cybersecurity software designed specifically for small businesses.

#2. Global Market Analysis: Identify Profitable Niches and Target Groups

A business's success depends on reaching and selling to the right people. If your business targets the wrong market, it will waste its time and resources on a group of people not interested in its products or services. You can rise to the challenge and accomplish your goals with these fundamental steps:

#3. Build the Right Founding Team: Invest in Human Capital

Imagine starting a cricket game without a well-coordinated team. The batter and bowler may possess exceptional individual skills, but without a strong foundation of teamwork, their efforts would likely fall short. Similarly, for your tech export business, assembling the right founding team is crucial for long-term success when launching a global business.&nbsp;

According to <a href="https://www.forbes.com/sites/adigaskell/2020/02/06/why-startups-need-to-get-the-founding-team-right/?sh=60eb3c6a5cde">Rotman's research</a>, "A founder's characteristics are important, but what's more important is that person's ability to bring a bigger and more experienced team with them"

A team requires individuals who possess complementary capabilities and share mutual trust, a shared vision, and common values. These elements are the cornerstones that lay the groundwork for a thriving business.

#4. Map Out a High-Level Business Plan and Financial Strategy

Here are some tips to assist you in developing a robust business plan and financial strategy for the initial years.

#5.&nbsp; Ensure Regulatory Compliance for Smooth Business Operations

The stakes are higher in the tech export business, with intricate international tax regulations, export control laws, and data privacy requirements all posing significant risks for tech exporters. It's essential to stay vigilant and make sure every aspect of compliance is addressed to avoid potential issues down the line. Here are some key aspects to consider:

Other Regulatory and Legal Considerations

#6. Technological Setup: Leveraging Tech Tools for Competitive Advantage

The <a href="https://quixy.com/blog/top-digital-transformation-statistics-trends-forecasts/">Gartner report</a> shows that 91% of businesses are involved in tech initiatives, and 87% of senior business leaders consider technological setup a top priority. Enhancing productivity and communication ensures smooth business operations in a competitive market. Here are some tools that can help you achieve company zen.

1. Tech Tools or Software to Boost Your Productivity

To enhance productivity, incorporating project management software like Basecamp or Jira can help streamline tasks, allocate resources efficiently, and track progress. Additionally, investing in automation tools can reduce manual efforts and improve efficiency in various areas, such as data entry and customer support. 

UiPath and Zoho Forms are well-known for their efficiency in data entry, while Zendesk and Intercom have gained popularity as top-notch customer support tools.

2.&nbsp;Tech Tools or Software for Effective Communications

Effective communication is the gateway to success for your business, and harnessing the power of top-notch collaboration tools is the key to that gateway. Platforms like Google Workspace, Slack, or Microsoft Teams allow team members to communicate seamlessly, share files, and collaborate in real-time, regardless of location. Furthermore, video conferencing tools like Zoom or Google Meet make virtual meetings with global clients and partners effortless and seamless.

3.&nbsp;Tech Tools or Software for Smooth Business Operations

For streamlined business operations, deploying customer relationship management (CRM) systems like HubSpot CRM or Salesforce can help manage leads, track customer interactions, and automate sales processes. Furthermore, cloud storage solutions like Dropbox or Google Drive enable secure data storage, access, and sharing, ensuring seamless collaboration with global stakeholders.

The launch day carries immense significance, as it sets the tone for the company's future trajectory and the reception it will receive in the target markets. Here are some essential aspects to consider when embarking on this transformative phase:

#8. Sales and Marketing: Creating the Foundation for Growth

As you sit down for an exciting business lunch to discuss your tech export business in India, you realise the importance of establishing a well-defined branding and marketing strategy. A strong branding strategy ensures visibility and customer acquisition, helping your business stand out in the competitive tech market.

Here are some tips for creating your branding and marketing strategy.

When it comes to sales strategies, consider a multi-faceted approach, including–

As you embark on the exciting journey of starting your tech export business in India, remember that success lies in the details. Every element plays a vital role from the moment you conceptualise your brand to the strategies you employ to capture customers.

Seize the opportunity, embrace innovation, and make your mark in the ever-evolving world of tech exports. The future awaits you!

Q1. How can I identify untapped opportunities in the market for my tech export business?

Ans: Before starting an export business in India, conduct a comprehensive market analysis to identify customer problems that your tech solution can solve. Look for unmet needs or inefficiencies in the market that your innovation can address, providing a unique value proposition.

Q2. Why is it important to build the right founding team for a tech export business?

Ans: A strong founding team is essential for long-term success. It should consist of individuals with complementary skills, mutual trust, a shared vision, and common values. A well-coordinated team enhances the likelihood of overcoming challenges and achieving business goals.

Q3. What key elements should be included in a high-level business plan and financial strategy?

Ans: A robust business plan should define specific, measurable, attainable, relevant, and time-bound (SMART) objectives. Financial strategies should include realistic sales projections, expense forecasts, and a plan for allocating funds for the initial years until the business becomes profitable.

Q4. What is essential for a successful initial business launch in a tech export venture?

Ans: Create a user-friendly website, plan a compelling product or service unveiling, find anchor customers who believe in your vision, and establish a strong branding and marketing strategy. These elements contribute to a successful launch and set the foundation for growth in the tech export market.

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Imagine craving a perfect cup of chai on your way home from work. Now, picture being able to customise that cup to your liking, even before reaching the cafe. Whether you prefer a flavoured blend or a classic, plain cup, you want it just as you make it home.&nbsp;

Chaayos, the chai-café chain, has mastered this art of personalisation. With <a href="https://chaayos.com/pages/our-story">over 80,000</a> ways to customise, each chai is a handcrafted masterpiece made to order. This level of customisation has satisfied individual taste preferences and propelled Chaayos to success, demonstrating the power of personalised experiences in boosting business.

Like choosing your favourite custom chai, you must consider the best way to provide your IT services. Customisation offers quality but can be time-consuming, while standardisation is quicker but may not fit well.&nbsp;

Consider factors like client volume, service demands, and available resources to decide what suits your company best. Customisation and standardisation each have pros and cons. Read on to learn more about standardisation vs customisation.

Customisation refers to tailoring software, applications, or systems to meet specific client requirements. It involves adapting technology solutions to align with unique business processes, preferences, and objectives. This personalised approach enhances functionality, user experience, and overall system efficiency.&nbsp;

Moreover, customisation enables businesses to address distinct challenges, ensuring seamless integration with existing infrastructure while maximising the value of IT investments. It fosters a client-centric paradigm, promoting adaptability and innovation.&nbsp;

In the dynamic <a href="https://www.skydo.com/blog/six-proven-strategies-to-propel-your-it-service-business-growth?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">landscape of global IT services</a>, customisation is pivotal in delivering bespoke solutions that cater to diverse industry needs and foster long-term client satisfaction.&nbsp;

Customisation, if done right, can work wonders for your business. You can work with every client individually, understand their needs and concerns, and offer solutions accordingly.&nbsp;

For instance, a company as large as IBM also provides customisation options for their clients. Their Extensibility Workbench has been developed specifically to cater to business-specific needs, where adjustments related to functionality and UI can be made to existing applications.

This way, not only is the client’s experience better, but it also ensures that your solutions are efficient. Successful customisation can become a great marketing tool through word of mouth and referrals.&nbsp;

Customisation can be challenging to keep up with, especially if your company’s operations are large-scale. It demands a lot of time compared to standardised solutions and affects your costs too.&nbsp;

For example, if building standard software costs<a href="https://www.uptech.team/blog/software-development-costs"> $50,000</a> to build, customised software’s costs can range from<a href="https://pixxel.solutions/en/hub/software-development/costs/"> $75,000 to $350,000</a>.&nbsp;

It can also get tedious and slow down your operations, which means you have to limit the number of clients you are working with.&nbsp;

Another disadvantage with customisation comes during the planning and implementation stage. You need to look at every problem and come up with solutions from scratch, which can lead to slower delivery.&nbsp;

Your work becomes complex with new and unexpected roadblocks, which can be rather frustrating. Furthermore, for every solution you come up with, you must ensure it is compatible with the client’s current system and can be integrated into their operations easily.

5 Questions to Ask Yourself When Customising Your Service

Personalising your service without increasing the final price is essential for any successful business. To accomplish a favourable customisation strategy, consider the following five key questions.

Imagine a global IT service company, Metaspace, specialising in augmented reality (AR) solutions. Metaspace provides custom services on AR applications for diverse industries, such as healthcare, education, and retail.&nbsp;

For healthcare, they might create personalised AR simulations for medical training. In education, they could develop interactive 3D models for immersive learning experiences. In the retail sector, Metaspace might design AR applications for virtual product try-ons.&nbsp;

This example illustrates how Metaspace's tailored 3D software services address specific industry needs, showcasing their expertise in delivering customised solutions within the broader IT services landscape.

Standardisation refers to establishing and adhering to uniform practices, protocols, and specifications across various operations and services. Defining technology, processes, and communication guidelines ensures consistency, interoperability, and efficiency. Standardisation further helps achieve operational excellence, cost savings, and higher customer satisfaction.

It enhances collaboration among diverse teams, reduces complexity, and facilitates seamless integration of <a href="https://www.skydo.com/blog/eight-point-checklist-for-your-international-business-strategy?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">services on a global scale</a>. This practice fosters a unified approach to IT service delivery, promoting reliability and compatibility while streamlining workflows.

With standardisation, you can churn out faster results and serve as many clients as you want. You can delegate simple solutions to freshers and complex issues to relatively experienced staff.&nbsp;

By <a href="https://www.skydo.com/blog/effective-time-management-techniques-for-business-owners?utm_source=blogs&amp;utm_medium=website&amp;utm_campaign=post_link">doing more work in a short amount of time</a>, you can increase your cost efficiency and profits, too. It is also easier to manage the operations of a business that is more into standardised solutions, and the one-size-fits-all model can suit a majority of your work.&nbsp;

For instance, if you have clients offering cyber security services from the same country, chances are that they are adhering to the same set of regulations laid down by the government. In this case, the software you develop for them can have some standardisation, saving a lot of time. It also fast-tracks the process for future clients with similar needs.&nbsp;

With standardisation, you risk becoming part of a herd. The solutions you offer might not be very different from the ones offered by your competitors. There is little room to be innovative or flexible, which can restrict the type of clients that come your way.&nbsp;

Additionally, it puts you in a box where you become known for serving only a narrow set of problems. It also leads to the risk of losing clients to competitors who are into customisation. Many clients are willing to shed some extra cash if it means they will get tailored and specific solutions.&nbsp;

5 Questions to Ask Yourself When Standardising Your Service

Here are some key questions for standardising your IT service business.

Let's consider a hypothetical company called "TechVista Solutions" that provides standardised IT services globally. TechVista could offer a standardised package of cybersecurity services, including firewall management, intrusion detection, and vulnerability assessments.&nbsp;

With this standardisation business approach, TechVista ensures consistent security for its clients across different regions. This standardisation allows businesses around the world to benefit from a uniform and robust cybersecurity framework, reducing the risk of cyber threats and ensuring a reliable defence strategy.&nbsp;

Clients of TechVista can thus rely on a standardised set of services to safeguard their digital assets, regardless of their geographical location.

Strategies for Striking the Right Balance

It is possible to derive the advantages of standardisation and customisation using a hybrid model. Irrespective of your company’s scale, you can adopt both methods operationally. The synergy of standardisation vs customisation proves valuable in optimising operations at any scale.

First, assess your client pool and determine which of the two options they might prefer. If a client is into cutting costs and saving time, standardisation is probably the right option for them. On the other hand, if a client demands creative solutions and doesn’t mind paying for them, customisation might be ideal.&nbsp;

Depending on your client base, you can direct resources proportionately towards customisation and standardisation.&nbsp;

For example, with a hybrid model, you can give your clients<a href="https://www.lazorpoint.com/insights/it-standardization"> customised chatbots</a> that have proven to increase revenue and can standardise the website design. A website template you can work with is necessary, not just a similar-looking website for all clients.&nbsp;

The fact of the matter is that irrespective of the level of standardisation, your work will shine best when it is customised. Even if it involves working with set templates, a tinge of customisation makes your work stand out and is a fool-proof way of leaving an impression.&nbsp;

However, divide your resources efficiently to ensure that the model you have adapted is scalable and that your workflow is steady. If your needs change and you need to redirect resources to either model, it should be a smooth transition.&nbsp;

You can achieve this by ensuring all employees are familiar with both methods of working and can adapt to them easily. Educate them and help them develop the skills to innovate or produce quick solutions and results when needed.&nbsp;

You can identify the client’s needs and provide suggestions for them regarding which route is best suited for them. Some research into their competitors can help you with these insights.&nbsp;