Scaling Nordic Startups, how can CX outsourcing unlock your growth?
The Nordics is one of the fastest growing startup hub in recent years, and one of the most active ecosystems in Europe. The Nordics have fostered some of the continent’s finest startups — including shining stars of
f the likes of Klarna, Pleo, Aiven, Lunar, Cognite, Oda, as well as 19 more unicorns.
The region has given us some of Europe’s most successful startups and with record-breaking funding spells and some of the largest rounds in Europe in 2021, its bustling tech ecosystem is one of the most active in the continent, valued at $2.6bn in Q3 this year.
With one of the highest number of unicorn per capita after Silicon Valley (27 unicorns from 26 million people), it boils down to the ‘Nordic model’ which combines market capitalism with technological advancements (ranked by the European Commission, Finland and Sweden are at the top of most digital countries in the EU), an international mindset, a stable welfare model and a long tradition of private-public collaboration on business initiatives. These are only some of the reasons that attracted the international VCs’ attention.
Yet, to compete with contenders like the Silicon Valley, Nordic startups often need to look for growth drivers beyond their domestic borders, and, although operating in a global startup hub, these Nordic startups may face several challenges when the need to scale up arises:
- Strong competition for talents due to saturated recruitment pools and low unemployment rates
- High salaries compared to the rest of Europe
- The steady need for these startups to seek new growth drivers in international markets (e.g. rest of Europe), due to the limited size of their domestic market
In fact, the Nordic region presents the lowest unemployment rate in Europe. Trading Economics shows that Norway’s unemployment rate inched down to 3.2% in the third quarter of 22 (lowest jobless rate since 2012).
Additionally, amongst the EU Member States, one of the highest average annual adjusted full-time salary was recorded in Denmark.
As a result, with a relatively saturated market when it comes to recruitment, high salaries, and scarce pool of Nordic language speakers, the recruitment pool for Nordic startups can be very limited. As such, growth can sometimes be a challenge, especially when it comes to responding to growing customer demands.
Moreover, as mentioned above, in the Nordics the trend of expanding internationally at an early-stage seem to have become the norm because of the small size of domestic markets. Yet, expanding in unknown territories can often be a challenge especially at an early stage.
All of these challenges come on top of those faced by most startups around the globe through this past year caused by volatility and uncertainty of the global economy.
How can Nordic startups scale in their domestic market and the rest of the world
As such, to face those obstacles and succeed like many Nordic startups, outsourcing can be an interesting solution to explore to scale their model internationally.
Working with a trusted BPO partner can thus allow startups to grow by:
- Unlocking a recruitment pool around the globe
- Focusing on their business while the outsourcing partner covers most services from Customer Support to Sales
- De-risking their growth model – with improved flexibility and agility in managing international teams
- Absorbing market shocks more easily
- Building a long-term competitive advantage and accessing new skills and technologies
- … and so much more
As a quick reminder, by partnering with The Nest by Webhelp, any startup across the globe can expect to operate in as many as 80 languages across all countries (we’re present in 60 countries) and industries.
However, in European Nordic countries, outsourcing is not an unknown concept. In fact, many organizations in Sweden, Denmark, Finland and Norway often delegate IT infrastructure, application development and service desks to third-party vendors, yet some may remain reluctant to benefit from the entire outsourcing portfolio as the result of a well-rooted prejudice against BPOs with myths such as:
- Myth 1: Outsourcing is only for big companies
- Myth 2: Outsourcing is not a long-term solution
- Myth 3: Outsourcing delivers low-quality output
- Myth 4: Outsourcing makes you lose control of your business
We’re here to show and prove you otherwise:
There are many other misconceptions out there, but we hope we were able to prove you otherwise.
Outsourcing can be the answer, especially in light of macroeconomic trends and the shift in VC markets where there is a need to go from overloaded headcounts towards slim organizations with low and predictable OPEX and lower costs.
Looking to level up your customer experience game? As a Nordic start-up or scale-up, you know that delivering top-notch CX is crucial for success. But managing it all in-house can be a challenge. That’s where we come in. Our team of CX badasses will help you design, implement, and optimize a strategy that fits your unique needs and goals. Don’t let limited resources hold you back – outsource your CX to us and watch your business soar. Contact us now to get started!Hannes Ahbe, Business Director Nordics at The Nest by Webhelp
Contact us to make 2023 your year!