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Outsourcing-Getting out of Competing On Price!

December 24, 2009

Electronics Manufacturing moved out of the US, went to Japan, then Singapore, Malaysia, then Indonesia and now China!

Many of the other manufacturing and services follow the same path – from higher labor cost countries to lower cost ones.

To think that somehow countries like India will have BPO work forever is just delusional. It may not all happen at once. It will be like the frog in pot of water on a stove. It will not see the slow rise in temperature and die eventually!

The recent recession made it even worse – many BPO service providers now compete strictly on price and that may be good from the next quarter’s point of view but the longer term view is one of the frog in a pot of boiling water.

There is incessant talk of “Business Transformation“, “Moving Up the Value Chain” , etc but ground realities and current efforts towards doing something about these are paltry and semi-serious.

outsourcing competing On Price

There are a number of areas where this can actually happen – if the BPO service provider perfects the art of executing the process as well as they can but at the same time institute metrics, measurement and a concerted, documented effort at improving them consistently and steadily. Then you have a valid argument that has a basis in facts and can ward off the BPO buyer from even considering other lower cost locations. The benefits that come from sticking to the same provider should be escalating so much that it eclipses the cost of moving and stabilizing with another vendor or country.

Something to think about seriously!

Related posts:

  1. Offshore vs. Nearshore
  2. Rural outsourcing: A win-win solution for both India and the USA?
  3. Current trends in offshore outsourcing
  4. Rural Outsourcing Not About Anti-Globalization/Patriotism But Alternative To Offshoring
  5. Can companies outsource product development for innovation?


Written by nkannan · Filed Under Outsource Blogs 

Comments

4 Responses to “Outsourcing-Getting out of Competing On Price!”

  1. It is happening on December 26th, 2009 9:57 am

    Competing on value is already happening in Indian based big 5 outsource companies like TCS, Infossys, Wipro etc. Slowly other vendors has to provide value in their work. If not they may not exist in business for a longer time.
    -Kris

  2. Outsourcing-Getting out of Competing On Price! | Outsource Portfolio Outsourcing just to Me on January 2nd, 2010 11:54 am

    [...] original here:  Outsourcing-Getting out of Competing On Price! | Outsource Portfolio By admin | category: Uncategorized | tags: bpo, business, decision, happen-at-once, [...]

  3. Call center on January 4th, 2010 4:36 am

    Hello,
    Competing on value has already been in execution by most of the BPO firms in India..
    And it has also givena postitive results too.

  4. Call Center Services on July 1st, 2010 11:15 pm

    this is Heather . Congratulation to maintain such a nice blog. Today i have visited your blog and found some interesting information.

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