outsource issue 31 - (Page 114)
THE BACK END THE LAST WORD
OPINION
Cultural Harmonisation versus Greed
You can’t outsource greed –
it is too close to home. Over
recent years, many large
corporations have seen
offshoring and outsourcing
as a means to increase
“shareholder value”. Huge
outsourcing corporations
have grown from innovative
deployment of talented,
well-educated, underpaid
workforces. Now it is time
to step back from the cookie
jar and look at what we
may learn from our trail of
crumbs...
We are not smarter than our
outsourcing ancestors. We
have the opportunity to build
on lessons we have learned
from their smartness. Otherwise
we become victims of our own
greed, ignorance and laziness
(adapted from Andrew Marr’s
History of the World).
Haste to be Number One
in global outsourcing has
highlighted labour arbitrage and
attrition as significant challenges
for providers. Timezone
proximity, cultural affinity, quality
of service and risk mitigation
(not least information security)
have combined to create a
sufficient overhead, to call into
question the real value of some
outsourced relationships to
corporate clients.
I say we stop screwing
each other on price and focus
on delivering quality not
quantity. Stop the search for
cheap labour, it is a temporarily
exploitive fallacy.
If an outsource provider
excels in quality, then by all
means let it open offices close
to the targets of its global
reach. In addition, I believe that
corporations should help deliver
long-term strategic development
to the economies in which it
operates. Feed the economy that
feeds you; create employment
as near to locally as possible,
and pay the taxes!
Recent developments
in near-sourcing in the US
are encouraging indigenous
employment, and a significant
growth in Latin America. The
model appears to be working
from what I understand.
I was at the Shared Services
and Outsourcing Week in
Orlando recently, where
a panel of various country
advocates was asked: how do
you choose the right location
for your outsourcing or service
centre? Panellists predictably
promoted their home turfs,
before Professor Phil Taylor of
Strathclyde University, gave the
right answer for me. Professor
Taylor explained that there is
no single choice; just what
works best for you, in terms of
locally skilled and educated
workforce, capacity, and a
cultural harmony. Attributes that,
coincidentally Scotland has in
abundance!
I strongly believe cultural
harmonisation to be of
enormous value. Abandon
thoughts of labour arbitrage, and
automate wherever possible.
Where the cloud fits – use it.
The increased visibility from
your process dashboard, and
the control you can exercise
locally make for more effective
and efficient management.
Don’t travel for two weeks of
your month to manage your
outsource provider, sit next to
your budding apprentice, your
struggling junior and guide
them in your ways, in your time –
in-house, or outsourced, they are
part of your team. What price do
social interaction and humour
have in your workplace?
The value of your
outsourcing relationship will be
greater than any cost-saving.
And y Scott
Would you like to
contribute an interesting,
provocative – and, if you
wish, anonymous – piece
to The Last Word? Or would
you like to respond to this
particular column? Why
not drop a line to the
editor at jamie.liddell@
outsourcemagazine.co.uk
to discuss your thoughts?
To contact Andy Scott about the opinions voiced in this article, write to ascott@chessys.com
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Table of Contents for the Digital Edition of outsource issue 31
Upwardly Mobile
Keys to Driving Supply Chain Outsourcing Success
Biography of a Carve-Out
Culture and Values
Redefining the Law Firm Delivery Model
Sharing the Glory
Norn Ironman
Breaking the Outsourcing Conundrum
NOA Round-Up
Back from the Summit
Losing the Race Before You Put On Your Trainers
Innovate to Accelerate
Comparing Clouds
People Power
Making an Impact
Home or Away?
Dead and Buried?
So What Now?
The Legal View
Top Ten
NelsonHall Round-Up
Sourcing Sage
Online Round-Up
The Deal Doctor
Inside Source
The Last Word
outsource issue 31
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