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Outsourcing Pros and Cons
by Gary Zeiss, Esq. on June 25, 2008
In a recent posting, Arun Purohit described an interesting disconnect between the sales approach of Indian outsourcers and the purchase approach of American (at least some) customers. I think he's spot on.
In the article, Mr. Purohit describes an American customer that is seeking a specific product - lets call it a "round hole", and the Indian seller trying to push "square peg" solutions into it. Every customer need could be met "easily," even though the seller didn't actually have the resources. The customer didn't believe them - and awarded the project to another seller.
He also describes an alternative proposal, where the customer had specific needs and the outsourcer could meet only some of them. The outsourcer was honest about the situation, the customer was "disappointed" with the partial nature of the proposal, but awarded the contract with instructions to "staff up."
I've seen this in the sales cycle. Outsources fear acknowledging that work is beyond their capability, and customers abuse those promises by demanding overarching compromises that ruin the value proposition for the outsourcer. There always seems to be an outsourcer who will promise more, for less - even though they cannot deliver.
In part, this is cultural. Indian salespeople (at all levels) try to please the purchaser with the goods available. U.S. purchasers tend to go in with a fixed view of requirements, and are often unwilling to acknowledge that innovation and creativity can come from their outsourcers. In fact, Indian sellers would benefit from more honesty and U.S. buyers would benefit from more flexibility - and our collective cultures could learn much from each other.
In the article, Mr. Purohit describes an American customer that is seeking a specific product - lets call it a "round hole", and the Indian seller trying to push "square peg" solutions into it. Every customer need could be met "easily," even though the seller didn't actually have the resources. The customer didn't believe them - and awarded the project to another seller.
He also describes an alternative proposal, where the customer had specific needs and the outsourcer could meet only some of them. The outsourcer was honest about the situation, the customer was "disappointed" with the partial nature of the proposal, but awarded the contract with instructions to "staff up."
I've seen this in the sales cycle. Outsources fear acknowledging that work is beyond their capability, and customers abuse those promises by demanding overarching compromises that ruin the value proposition for the outsourcer. There always seems to be an outsourcer who will promise more, for less - even though they cannot deliver.
In part, this is cultural. Indian salespeople (at all levels) try to please the purchaser with the goods available. U.S. purchasers tend to go in with a fixed view of requirements, and are often unwilling to acknowledge that innovation and creativity can come from their outsourcers. In fact, Indian sellers would benefit from more honesty and U.S. buyers would benefit from more flexibility - and our collective cultures could learn much from each other.
Permalink: Buying and Selling Services
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/126945
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Response from:
Ishani Mitra
(06/25/08 6:25am)
This is an interesting observation. Outsourcing brings in its wake a lot of satisfied as well as a few unsatisfied clients. You may also visit www.outsorcerer.com/blog for more news, vies and articles on outsourcing.
Response from:
P.V.Bhaskar
(06/30/08 12:38am)
Gary:
You make a very pertinent observation when you emntion the two sides to the sales pitch. True, the exaggeration in the sales pitch is directly proportional to the hipocrisy in the sales demand. Even in a seller-buyer relationship, the difference between a "Could you please do..." and "i want this done..." is that between true and fake in delivery terms.
True, Indians have a problem saying NO. But then, how prepared is the West to hearing strong NO's from service providers in India? The first case in Arun's article is typical, but the last, where an honest manager still gets what he set out to, is contingent on a dozen other business parameters (lock-in, opportunity costs, etc.).
It migth be an extreme statement to make, but between sellers and buyers, the principle of "ask me no questions, and i will tell you no lies" often holds good.
Cheers!
You make a very pertinent observation when you emntion the two sides to the sales pitch. True, the exaggeration in the sales pitch is directly proportional to the hipocrisy in the sales demand. Even in a seller-buyer relationship, the difference between a "Could you please do..." and "i want this done..." is that between true and fake in delivery terms.
True, Indians have a problem saying NO. But then, how prepared is the West to hearing strong NO's from service providers in India? The first case in Arun's article is typical, but the last, where an honest manager still gets what he set out to, is contingent on a dozen other business parameters (lock-in, opportunity costs, etc.).
It migth be an extreme statement to make, but between sellers and buyers, the principle of "ask me no questions, and i will tell you no lies" often holds good.
Cheers!
Response from:
Arun
(07/01/08 8:30am)
Well, getting a business or not does depend on a lot of factors. What you get when you openly admit your limitations is 1) A clear conscience 2) An assignment you are actually able to deliver 3) A satisfaction that you didnt take a contract you didnt fully deserve. 4) Peace of mind as you are not stretched to deliver
5) A greater trust in the partnership where you are respected for not trying to make unworthy buck
5) A greater trust in the partnership where you are respected for not trying to make unworthy buck
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