Filed in archive
Opinions & Insights
by Gary Zeiss, Esq. on October 3, 2008
This week, ZDNet published an article entitled "India's Outsourcing Bubble is Bursting" - describing the slowdown as it effects the IT Outsourcing labor market in Bangalore. While it doesn't appear that Bangalore is in the full throes of doom-and-gloom, the article points to key indicators of a slowdown - falls in housing prices, stabilizing salaries, and many more people looking for work.
The article points out, however, that the slowdown may have some positive effects on the outsourcing business - particularly a reduction in turnover. Furthermore, some are seeing an opening to better compete with the Accentures, IBMs and HPs of the world - not a far-fetched possibility as customers already accustomed to outsourcing get aggressive in looking for better deals.
The real key to competing with these companies is not in the back office, but the management infrastructure. Accenture, IBM and HP are expert at managing relationships, and companies have been thus far been willing to pay for that expertise. This is where the Indian and Philippine outsourcing companies have, frankly, fallen short.
Offshore vendors may want to look at this time as a time to invest in their US presences, rather than scaling back. True, it may be a zero- or negative- sum game, but the opportunity may be there to grab a far larger piece of the pie.
The article points out, however, that the slowdown may have some positive effects on the outsourcing business - particularly a reduction in turnover. Furthermore, some are seeing an opening to better compete with the Accentures, IBMs and HPs of the world - not a far-fetched possibility as customers already accustomed to outsourcing get aggressive in looking for better deals.
The real key to competing with these companies is not in the back office, but the management infrastructure. Accenture, IBM and HP are expert at managing relationships, and companies have been thus far been willing to pay for that expertise. This is where the Indian and Philippine outsourcing companies have, frankly, fallen short.
Offshore vendors may want to look at this time as a time to invest in their US presences, rather than scaling back. True, it may be a zero- or negative- sum game, but the opportunity may be there to grab a far larger piece of the pie.
Permalink: The Economic Crisis - and an Opportunity
Trackback: http://publish.creative-weblogging.com/publish/mt-tb.pl/135265
Addthis
Ask
Blinklist
del.icio.us
Digg
Fark
Facebook
Google
Lycos
Ma.gnolia
Mr Wong
Netscape
Netvousz
Newsvine
Reddit
StumbleUpon
Slashdot
Tailrank
Technorati
Wink
Yahoo
Vote for The Economic Crisis - and an Opportunity:
|
Rating: 8.29 out of 7 vote(s) cast.
|
Response from:
Johnnie Debt
(10/03/08 10:13am)
Good article. Thanks for posting.
Response from:
Prabhanjan Deshpande "PD"
(10/12/08 11:43pm)
To place on record, I completely subscribe to the thought of viewing this as a good opportunity for Indian IT Vendors. The tag that we have as the Back-office and as an affordable Technology hub must be leveraged best in this scenario.
During recessionary phase in the Western world, it is easy to be the lane of people who all say that the going is tough for IT vendors. Rather, it is important to notice the platonic opportunity here. It makes a lot of industry sense for a IT vendor to say that India outsourcing is one of the tested ways to sustain cost-advantage and thrive in uncertainties.
If IT / ITEs offshoring has always been to mitigate risk and gain cost advantage, it is the time to actually reap the benefits ouf it.
It is the time for vendors to re-assure confidence to the recessionary industries to standby them and support their cost/quaality/time/risk mitigation initiatives in testing time.
During recessionary phase in the Western world, it is easy to be the lane of people who all say that the going is tough for IT vendors. Rather, it is important to notice the platonic opportunity here. It makes a lot of industry sense for a IT vendor to say that India outsourcing is one of the tested ways to sustain cost-advantage and thrive in uncertainties.
If IT / ITEs offshoring has always been to mitigate risk and gain cost advantage, it is the time to actually reap the benefits ouf it.
It is the time for vendors to re-assure confidence to the recessionary industries to standby them and support their cost/quaality/time/risk mitigation initiatives in testing time.
Response from:
Benjamin Frank
(10/21/08 6:41am)
Added Your Link Require Link Back
Dear Webmaster
You have a great website and we’re sure you realize the role played by the external links from related sites in boosting the ranks at major search engines. We would thus like to put forward a Links Exchange proposal to you to swap links with us which is thematically similar to your website, is well designed and maintained, and is popular enough to refer to.
I have placed your link at our site with Google indexed Page. Please place my link on your link page.
http://www.technousa.com/links25.html
with following your link detail
URL: /
Title: The Outsourcing Weblog: Main Page - Best Practices and Resources for smart outsourcing
Description Best Practices and Resources for smart outsourcing
.Find here below the detail/ link html code:
URL: http://www.technousa.com
Title: SEO Services
Description: For any kind of website, Technousa.com offers very superior SEO Services. Our process guarantees to bring your website in the top 10 ranking in most of the popular search engines like Google, msn and yahoo.
Html code
SEO Services - For any kind of website, Technousa.com offers very superior SEO Services. Our process guarantees to bring your website in the top 10 ranking in most of the popular search engines like Google, msn and yahoo.
Hoping to hear from you soon, I hope you find this of interest and if you have any questions please let me know.
Best Regards,
Webmaster
Benjamin Frank
[email protected]om
Dear Webmaster
You have a great website and we’re sure you realize the role played by the external links from related sites in boosting the ranks at major search engines. We would thus like to put forward a Links Exchange proposal to you to swap links with us which is thematically similar to your website, is well designed and maintained, and is popular enough to refer to.
I have placed your link at our site with Google indexed Page. Please place my link on your link page.
http://www.technousa.com/links25.html
with following your link detail
URL: /
Title: The Outsourcing Weblog: Main Page - Best Practices and Resources for smart outsourcing
Description Best Practices and Resources for smart outsourcing
.Find here below the detail/ link html code:
URL: http://www.technousa.com
Title: SEO Services
Description: For any kind of website, Technousa.com offers very superior SEO Services. Our process guarantees to bring your website in the top 10 ranking in most of the popular search engines like Google, msn and yahoo.
Html code
SEO Services - For any kind of website, Technousa.com offers very superior SEO Services. Our process guarantees to bring your website in the top 10 ranking in most of the popular search engines like Google, msn and yahoo.
Hoping to hear from you soon, I hope you find this of interest and if you have any questions please let me know.
Best Regards,
Webmaster
Benjamin Frank
[email protected]om
Response from:
Daniel
(11/17/08 2:42am)
It's true that not all the companies are facing a downturn in their business.
BPOVIA(http://www.bpovia.com),
for instance, is expanding its business through the economic disaster.
BPOVIA is a promising outsourcing firm that leads the market in China.
Check it out yourself!
BPOVIA(http://www.bpovia.com),
for instance, is expanding its business through the economic disaster.
BPOVIA is a promising outsourcing firm that leads the market in China.
Check it out yourself!
Subscribe
Use the search to look for other interesting posts
| RSS |  See all blog subscribe options |
 What is RSS? | |
| Yahoo! |
|
| Addthis |
|
| Bloglines |
|
| Newsletter | |
| Follow us on Twitter! |
