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Conv India outsources outsourcing
by shoonya Rank_participant on Oct 18, 2007 - 04:31 AM read 1613 times
 

Dunno, if any of you caught this article in The Guardian. http://business.guardian.co.uk/story/0,,2190248,00.html?gusrc=rss&feed=networkfront

 We can't feign ignorance and say we didn't see this coming. To me the big lesson learned is KISS (Keeping it Simple, Stupid) when it comes to value proposition to clients. The outsourcing model had a simple message 'We WILL save you money'. Companies fell for this. Today these outsourcing companies have admirably reached critical mass and gained confidence and are trying to move away from the original value proposition because it is becoming clear that there is not always a cost advantage.

 For companies providing Enterprise 2.0 services to NGEs the value proposition must be as simple as the outsourcing proposition i.e. 'We WILL transform you, you will reap tangible benefits that far outweigh the costs in implementing a new paradigm, you do not want to do this on the cheap'.

 I don't want to bang on about how outsourcing does not work, etc, etc. Lots of companies have had varying degrees of success with outsourcing. What I am interested in, is the huge opportunity that exists today in the services industry and what part we need to play in educating business leaders understand the competitive benefits of transforming into an NGE.

  • Conv serengeti
    Rank_member
    Your post really bothered me...
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    by serengeti on Oct 20, 2007 - 03:27 AM read 95 times
     
    Your post really bothered me.  Not because it's a bad post.  On the contrary, your post hit the bulls eye and kept me restlessly awake on my transcontinental flight yesterday.  

    Later when I returned home and brewed myself a piping hot cup of ovaltine (a habit to help me recover from international travel -- try it with a stick of fresh cinnamon from Mauritius, delicious! -- but I digress),  I realized that the KISS approach you advocate proved particularly germane in our firm.

    Following several false starts in outsourcing, it was only when we rationalized our outsourcing strategy around the single goal of simplicity with an outfit in Novosibirsk (yes, that's Siberia folks!) that we began to witness true transformation.

    The day we embark on the daunting task of becoming a NGE, I will heed your advice and try to get KISSed before getting screwed.
    • Conv Horlicks with Cardomom
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      by shoonya Rank_participant on Oct 22, 2007 - 04:50 PM read 102 times
       

      is my choice for a hot beverage althouh ovaltine with cinnamon is a close second.

      More seriously though, your obtuse post has left me somewhat baffled. Offshoring is NOT, I repeat NOT a recipe for TRUE TRANSFORMATION. It can reap cost benefits if managed very carefully and for the right purpose but otherwise can significantly deviate from transformation.


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      • Conv Paula Leadbetter
        Rank_member
        Yes, but...
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        by Paula Leadbetter on Oct 23, 2007 - 03:56 AM read 87 times
         
        Granted, outsourcing is not necessarily a recipe for TRUE TRANSFORMATION (btw, why the uppercase?).  But outsourcing can lead to an alignment of operational strategy with corporate strategy.  Organisations that manage to place these in lock-step can indeed experience true transformation.
        • Conv I agree
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          by shoonya Rank_participant on Oct 23, 2007 - 10:46 AM read 75 times
           

          that outsourcing can result in operational efficiences and lead to cost savings.

          My concern that offshoring is not always the answer to outsourcing. Outsourcing to focus on core competencies makes sense, offshoring critical functions to realize cost savings does not work. The case for cost saving on paper is compelling, operationally not. The case for offshoring is actually more compelling in terms of improved quality of product simply because the product is highly engineered in terms of requirements, design and testing. For example when was the last time you measured 'defect injection rate' for software development within a company. For offshore companies these types of mesurements are quite normal because the resourcing model is based off of these measurements.

           The uppercase was to stress my point.


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      • Conv serengeti
        Rank_member
        Who you callin' obtuse ?
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        by serengeti on Oct 23, 2007 - 07:53 AM read 76 times
         
        Who you callin' obtuse ?  (smile).  I think offshoring can result in significant gains in operational efficiencies.  But you're point is well-taken : with so many sick industries, sick companies, sick business models, and saturated markets, a healthy round of creative destruction is often the key to veritable transformation.

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        • Conv I think
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          by shoonya Rank_participant on Oct 23, 2007 - 10:49 AM read 84 times
           
          Destructive creation is what you meant.

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      • Conv serengeti
        Rank_member
        horlicks ?
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        by serengeti on Oct 23, 2007 - 07:53 AM read 84 times
         
        And what on earth are horlicks ?

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        • Conv Try it
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          by shoonya Rank_participant on Oct 23, 2007 - 10:47 AM read 99 times
           

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  • Conv Paula Leadbetter
    Rank_member
    Let's look at this from an angle
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    by Paula Leadbetter on Oct 27, 2007 - 03:58 AM read 109 times
     
    Here's another angle that is often overlooked in the outsourcing debate, especially amidst (good-natured) complaints about cultural friction on the outsourced customer service side of western firms:  Although by 2010, India will have the world’s largest number of English speakers, as Prof. David Crystal has memorably noted elsewhere, “When 300 million Indians speak a word in a certain way, that will be the way to speak it.”!

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