Outsourcing: It’s Not About Cost
Gone are the days where outsourcing is usually about the cost. This was the main conclusion revealed by the research study entitled 'Outsourcing Comes of Age: The Rise of Collaborative Partnering'.
According to the research study, there are now several factors aside from cost which are now being considered when considering outsourcing deals. Some of these factors which are considered in the research study includes the following:
-Accessibility to right talent
-Geographic expansion
-Reinvention of their business model
-Promote innovation
The factors which are mentioned in the research study is a far cry from the straight forward attitude that companies had before. Now, they are much more focused on the long-term effect of outsourcing in their company as opposed to just saving money for their organization. I take this as a good sign for the future of outsourcing because it means that they have learned a lot from their outsourcing deals.
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I wrote a piece in response to this article.
http://blogs.ittoolbox.com/eai/madgreek/archives/outsourcing-vs-offshoring-18276
Comment by Madgreek on August 11, 2007 7:24 am
One can always use a smaller more entreprenuerial offshoring facilitator to assist with its offshore ventures. IBM, Accenture, Convergys, Sykes and the like are expensive to work with.
Mom and Pops can still avail of the cost savings from outsourcing their call center work or web design and updates to a smaller, hands on firm.
The locally owned shops seem to be cheaper, but beware, if you have communication problems with the management, your success will be hard fought.
Find an offshore partner with roots in your native country. Start small and do not choose your vendor based on price alone.
Comment by OUTsourcing Philippines on August 11, 2007 7:55 pm
What an obscure idea. My response at http://david-carr.blogspot.com/2007/08/response-to-outsourcing-its-not-about.html
Comment by David Carr on August 15, 2007 1:31 pm