Okay! So every other day you read about the great advantages that out-sourcing offers. If you are in the Indian IT industry, you would be used to jargon like "value addition", "core competance", "higher quality" and "low cost" associated with this term.
This week, I had a chance to think about a few factors that the "client" has to consider when opting for IT out-sourcing. The India Advantage is all too well known. However they need to weigh in other factors..
- Wages of Indian professionals are escalating at the highest rate in the world. They are no more low cost!
- As you would expect with any booming economy, there are plenty of opportunities for professionals. This implies a high rate of attrition. Attrition leads to re-scheduling of plans and will translate into a loss of business efficiency.
- People are no more keen on "any" work. Being world-class they would expect truly challenging and fulfilling work.
Here is a ready reckoner that will prove to be handy..
- Understand your out-sourcing need clearly.
- The operation scale should be an enabler for cost-cutting. Weigh in the communication and travel related costs.
- Hire "appropriate" talent for the tasks on hand. It does not make sense to hire high potential folks for non-core tasks.
- Try to groom the Indian operations towards assuming ownership of key areas. Create a feeling of them being valued.
- Select a suitable partner.
- Have patience and be ready to wait for a couple of years to start reaping the benefits!
More on this topic in the near future ;)
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment