The traditional definition of outsourcing describes using external agents to perform one or more organizational activities – purchasing of goods or services. Mostly in our IT segment we see outsourcing as contract programmers to third party facilities. And now there is something else too associated with it. And what’s that?
The usual way of outsourcing are getting very common practices with every company. The unusual ways are trending in. The global village is here. In my business I’m only six-tenths of a second (speed of light measurement) away from the other business person around the globe. If I need to partner with somebody in IT – I can always easily look into Bangalore/Hyderbad, India or Belarus, Russia, and Vancouver, Canada.
According to Economist, “Any activity that relies on a screen or a telephone can be carried out anywhere in world.” A-N-Y-W-H-E-R-E-I-N-T-H-E-W-O-R-L-D! Thus making services such as insurance processing, customer care solutions, banking-services, home-security, health-care delivery, accounts-management as exportable as automobiles or TVs or VCRs. Major airlines have their back-office works transferred to countries like India, and Phillipines. Even systems like EMS in Australia are controlled and monitored remotely in offices like, Singapore, Malaysia, Sri Lanka, Indonesia, and Taiwan.
So what’s the age of outsourcing in which we are living in? But in the first place the question arises “W-H-Y-O-U-T-S-O-U-R-C-E?” Its a competitive world. And in a competiting market in order to $ave those extra bill$ is as equally important as to sustain yourself in the business. Why pay for a service $100 when you can get it done for $30 or less. So that’s why O-U-T-$-O-U-R-C-E!!
Wages in the United States, Germany, Switzerland, United Kingdom, Japan are…ludicrously higher than the rest of the world. We like high wages and high ranking on any competitive table. And if we would like to continue this position or stay near the top, then we must work on the next act.
Its a revolution in cognitive processing. We all are in technology business, from travel-services-organizations, to twelve-table-restaurants, to financial-services, the list goes-on. Downsizing is not the solution. Finding new ways to enhance revenues – n-e-w-p-r-o-d-u-c-t-a-n-d-i-n-n-o-v-a-t-i-o-n is the key for the $ucce$$ gate!
And I would like to conclude with James Morse saying, “The only sustainable competitive advantage…comes out-innovating the competition.”
Think revolution, not evolution.