Global Services Blog

Outsourcing – Features – Winds of change whistles through outsourcing industry

Posted on September 6, 2011 by Atul Vashistha

Winds of change whistles through outsourcing industry

December 28th 2010 – Tuesday

By Atul Vashistha

Staffing augmentation, labour arbitrage and India. For many out there, outsourcing seems to be defined only by the above – people working for low compensation in locations such as India helping the client save significant monies.

That is outsourcing to them. However, the recent and continuing downturn in 2009 and 2010, has upset many notions and models that have been in place for over a decade. What was considered to be the norm or the normal as far as outsourcing is concerned, is now in flux and so requires different responses.

Take for instance, the call centre business. There was a time when India was the only market given due consideration, as far as setting up call centre operations was concerned. That notion has been dispelled by other markets such as the Philippines and Costa Rica, which have showcased themselves in exemplary fashion as far as the provision of voice-based customer support services is concerned. In similar manner, we see the rise of engineering services and local players in Brazil and Russia, increasingly emerging as a premier destination for the outsourcing of complex engineering and applications activities.

The above instances are just some of the many shifts and changes we are likely to continue to witness. In particular, they point towards an endeavour to be on the lookout for markets with newer skill sets, and not just go by established norms wherein predestinated markets such as India have long been considered to be the haven for any and every kind of outsourcing.

Spreading risk

In the same breath, it is vital that markets with access to equal or better technology processes are also identified. The situation is akin to the age old maxim wherein stock diversification is key to a healthy nest egg; depending on just one or more markets for all of one’s outsourcing needs is really not a very good idea. Increased attrition and competition for resources point to the need for geographic diversification. Besides skill sets and technology, there are other reasons for which alternate markets also need to be actively considered.

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