ENTREPRENEURIAL PROFILE: Peter Marcum: DevDigital
DevDigital has offices in Nashville, Tennessee and Baroda, India. DevDigital began as company that bought used Internet network assets, such as routers and switches, from distressed companies at a steep discount. The company would refurbish this hardware and resell it to small independent network companies.
Eventually the company moved into the actual operation of digital networks. As profit margins for network operators became razor thin, the company made another major strategic shift.
(DevDigital’s India team)
DevDigital purchased a small Web site programming shop in India that was being sold by one of their customers. “My theory was that the larger companies, Google, IBM, and Apple were and had been diversifying globally in their software production,” says Peter Marcum, co-founder of DevDigital. “The problem for a smaller US based operation, is who do you call, or trust, or where do you go to get started, in an overseas location?”
DevDigital made the move into Web site development for smaller companies. It took about four years to fully integrate the two locations. Due to its cost advantage and stable employment, the company has been able to grow in the highly competitive market of Web site development.
DevDigital does about 80 percent work for hire and 20 percent projects in which they take equity in exchange for Web site development. “My strongest advice to anyone wanting to set up off shore is find a local way in,” says Marcum. “By that I mean you need a core group that will stay long-term as you build a team, just as you would here in the US.”[i]
[i] Peter Marcum, personal communication, May 23, 2014.