Offshore Outsourcing – The Lighthouse for Floundering Corporate Ships
November 6, 2008
It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness…
so began the Charles Dickens’ classic novel “Tale of Two Cities’ depicting the tumultuous times in London and Paris during French revolution. If there ever was a ‘bull’s-eye’ quote to describe whatever is going on in global economy these days, it is this.
If you guys are thinking “wow this guy can quote Charles Dickens” let me assure you I have not read him. I am just quoting our CEO Mr. Partho Mondal who began addressing a company meeting with these words. The CEO had called the meeting to reassure us and encourage us in the face of recessionary trends gripping the world economy in general and the IT industry in particular.
And what words! He dwelt on the dark clouds surrounding the global financial world which is threatening to throw the world back to the dark ages of rampant unemployment, suicides and heart wrenching riches to rags stories and showed us that in the midst of this gloomy scenario there is a silver lining in those clouds. A better world waits to emerge where greed, avarice and naked ambition will be kept in check.
On the face of it, the economic downtrend is sending jitters down the spine of the IT industry. But looking closely one notices that it may actually turn out to a blessing in disguise for firms which provide offshore outsourcing solutions since their capabilities of providing cost saving and high quality services will much in demand by the companies hit by slowdown.
During lean times, companies look to cut the costs and improve efficiency by focusing on the core competencies. This is when offshore outsourcing solutions become even more significant and very much in demand to keep manpower costs low. Let’s see what such firms can offer to their outsourcing client:
In lean times companies have their hands full from coping with the troubles besieging the main operations and they would rather not be distracted by seemingly minor yet important aspects of their business.
For example, a manufacturing company would rather focus on increasing the operating margins and overall productivity than fret about its web site design. It would prefer to outsource the web design to some offshore outsourcing firm which is expert in the web development.
This way the management has its entire focus on improving the core operations and the important task of web development is taken care of by the specialists at a fraction of cost of recruiting, training and maintaining full web development team.
Cost and profit margins are the main concerns of companies during the times of distress. Outsourcing serves both purposes by providing good quality services at much lower costs than anything available back home. Moreover running costs are reduced as you pay only for the time used (especially when outsourcing web design and software development) since the offshore outsourcing firm becomes responsible for running costs.
By tapping into the skill pool of the outsourcing vendors you also can greatly expand your company’s portfolio of skills which you then offer to your customers. Imagine providing French writing services to your European clients by using French language students in India who would do equally good (if not better) job at one tenth of cost of their French counterparts.
So you have saved costs, you have satisfied your clients and you have demonstrated your versatility in providing quality services. Think where the competition would stand in the face of such qualities.
It is worth noting here that above advantages are not natural advantages. Only those offshore outsourcing firms can confer such benefits on their clients which have proper processes, skilled manpower and right quality controls in place.
Firms which are thinking of making a killing without inherent controls and processes will only hurt themselves as the work which will be outsourced now will be higher end jobs (costly for the clients to do by themselves) and the client will be more finicky about the value they get for their money. So go through the renovation if not reinvention before reaching out.
Team Leader – Web Content