Bad news deliveries are never easy. Especially when it pertains to job losses. And the possibility of snatching away a person’s steady income, a certain lifestyle, family comforts etc. The difficult decision that many corporates in America are being forced to take these days on account of the worsening situation at home gets compounded in the case of offshore vendors by the distance factor.
Nov 22, 2012 Bulking up the economy
Nov 13, 2012 IT-BPO sector set to grow 11% in 2012-13: Nasscom
Nov 4, 2012 India’s Outsourcing Firms Must Boost Moralec
Nov 14 2012 Would you offshore your IT to China?
Desperate situations often call for desperate measures.
So while I do understand the angst that prompts a rookie ex-programmer like Virgil Bierschwale to start something like where he keeps venting his spleen at the American CEOs who continue to lay off employees in order to stay above the water (Bierschwale even has a “Wall of Shame” (I would call it a breast-beating forum) for them on his website) —- the fact cannot be brushed aside that outsourcing as a business model may not just survive, but even thrive in a depressed market. And, there is an economic justification for it.
I’ve read with interest, President elect Barrack Obama’s comments on outsourcing. There is nothing new in those comments. The fear psychosis has been with us for decades. During industrialization, the dominant fear was that machines would replace humans. Post telecommunication-internet boom, the fear is that tech workers from developing economies like India and China will make white-collared American workers redundant.
After US financial crisis several US companies started selling their captive units to Indian companies to clean up their balance sheet. First Citi Groups sold its captive unit in India to TCS. Now it is Motorola’s turn, it decided to sell its software unit in Malaysia to India’s Satyam Computer Services Ltd and the deal should be completed by the end of 2008, subject to regulatory approvals. Satyam will take on 128 Motorola employees as part of the deal, it said a statement to the stock exchanges today.
Many of us go for offshore advertising to save time and money. If we have someone else doing the work for us, then we will have more time to focus on other aspects of our business. It also saves us money because we can get the job done at a cheaper rate than what we would have, if we had to do it in-house or within our country. However, there are some serious risks involved in outsourcing and these should be carefully considered when choosing an offshore outsource provider.
More and more companies are planning to send high skilled IT jobs like application development, project management to offshore locations. Recently Dallas based ACS announced that they are planning to send high skilled jobs to countries like India, Philippines, Mexico, Jamaica, and Guatemala. ACS has 35% of its workforce located in offshore and nearshore locations, it is planning to use the cost savings from outsourcing in marketing, sales, new product development etc.
There is a growing interest in outsourcing among businesses to outsource their business processes, started as a cost saving technique but now business process outsourcing is considered as a strategic initiative for companies to stay competitive in the global market. As the size and complexity of the outsourcing project grows, companies need to mange multiple outsource vendors, success of BPO depends on coordination between different vendors located in different countries and time-zones Read more