The outsourcing backlash may continue as the Americans get closer to election time, but instead of curbing this management trend it has generated curiosity and interest through the immense amount of publicity it has attracted. Whether or not people agree with it, it's strengths continue to make economic sense in a fiercely competitive environment. It's probably the most talked about business trend today. India, especially, features in a majority of the outsourcing news, negative and positive. Infact, the impact of this trend as well as India's predominant role, has even started people using the word 'bangalored' which is derived from the booming tech city in South India. An article i read talked about how 'Bangalored' was a synonym for 'outsourced' and was being used frequently nowadays, especially by anti outsourcing parties who advise people to avoid gettign 'bangalored'!
Well like it or not getting 'bangalored' continues despite allt he protests. Some surprising figures show how 2004 despite being an election year in America is proving to be a boom year for outsourcing to India. According to US based Technology Partners Inc (TPI), a consulting firm that tracks pending outsourcing deals on a quarterly basis, more than 18 to 20 outsourcing global projects each valued over $1 billion are in the pipeline. The survey by TPI reported that the 2nd quarter of 2004, which ended in June, saw 5 mega deals each valued over $ billion. The article which feaures this information ( Times of India, July 22, 2004) also talks about how TPI has observed the emerging trend of bundling BPO and IT outsourcing as clients seek benefits from both. Another trend is that of businesses awarding contracts that cover more than one business process, for example financial services with HR. Despite the backlash in the US there are several Fortune 500 companies looking to outsouce to third party companies.
Sometimes publicity, even of the negative sort, can work opposite to what it was intended. In this case it is obvious that several people would have become opposed to the practice, but it has obviously generated immense interest and people have educated themselves about the trend through all the available information. Some have chosen to ignore it's shortcomings while others have refrained from pursuing it while even others have decided to go for it once they heard so much about it!
I still maintain that outsourcing makes sense but only to an extent. One has to be sensitive to the outsourcing backlash because it is not baseless. Responsible outsourcing is a must where the need to outsource is examined carefully before making a decision and the retraining and relocation of employees, if there are lay offs, have to be taken into consideration.
Well like it or not getting 'bangalored' continues despite allt he protests. Some surprising figures show how 2004 despite being an election year in America is proving to be a boom year for outsourcing to India. According to US based Technology Partners Inc (TPI), a consulting firm that tracks pending outsourcing deals on a quarterly basis, more than 18 to 20 outsourcing global projects each valued over $1 billion are in the pipeline. The survey by TPI reported that the 2nd quarter of 2004, which ended in June, saw 5 mega deals each valued over $ billion. The article which feaures this information ( Times of India, July 22, 2004) also talks about how TPI has observed the emerging trend of bundling BPO and IT outsourcing as clients seek benefits from both. Another trend is that of businesses awarding contracts that cover more than one business process, for example financial services with HR. Despite the backlash in the US there are several Fortune 500 companies looking to outsouce to third party companies.
Sometimes publicity, even of the negative sort, can work opposite to what it was intended. In this case it is obvious that several people would have become opposed to the practice, but it has obviously generated immense interest and people have educated themselves about the trend through all the available information. Some have chosen to ignore it's shortcomings while others have refrained from pursuing it while even others have decided to go for it once they heard so much about it!
I still maintain that outsourcing makes sense but only to an extent. One has to be sensitive to the outsourcing backlash because it is not baseless. Responsible outsourcing is a must where the need to outsource is examined carefully before making a decision and the retraining and relocation of employees, if there are lay offs, have to be taken into consideration.
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