Rendezvous With An Outsourcing Skeptic

Here is a candid conversation I had with a head of an organization who was looking towards outsourcing certain business processes of his company but could not keep his inhibitions to himself.

Q: How cheaper is Outsourcing actually?

A: Outsourcing lets you make cost savings of approximately 30 to 40 per cent. Indian employees work for you at about £150-£200 per month, which is about one-third of what their counterparts in US and the UK will charge you.

Q: Doesn't it mean thousands of jobs in the US and UK will be lost?

A: in short term, yes. Some call centre or data related works will be lost. But it's not all that black and white. Many firms offshore their work processes because it becomes unprofitable and unviable at the existing operating costs. So outsourcing was a better than closing it down altogether.

Q: I'm not convinced. What'll you say for what happened in manufacturing sector?

A: UK's Department of Trade and Industry and NASSCOM have declared that UK is incompetent in volume as well as skills to match up to the work in the manufacturing sector. Outsourcing is the only way for the UK economy to remain competitive in the market.

Moreover, creation of more consumer spending power in countries like India will subsequently fuel the demand for new products and services offered by the western countries.

Q: But I've heard that some of the India companies are terrible with their services. Even Dell had some problems out there, aint it?

A: The IT services in India are among the best in the industry owing to highly skilled, English-speaking graduates churned out by Indian universities year after year. India follows the British model of education and has a history with the culture too. This erases out any chances of cultural differences.

Q: But I'm not very keen on storing my personal data in India. I mean how can I be sure that it'll be well protected there?

A: UK firms using offshore services are bound by UK data protection laws to ensure that the same level of protection is given as if it were stored in the former country. The financial firms have to comply with Financial Services Authority regulations though.

In addition to this, considering the boom in the KPO industry, the Indian government is working on data protection laws to reassure overseas companies.

Q: What companies are in the outsourcing business?

A: HSBC and British Airways were the very first companies to embrace the Indian outsourcing model and set up their own development centers there. And today there are a host of other companies to join the fray, especially so in the financial sector. Major names include Aviva, Barclays, Lloyds TSB and Shell.



Q: Who do firms offshore their work to?

A: There are many outsourcing service providers in India who specialize in providing seamless and cost effective business solutions for your processes. The work staffs in these companies are usually professionals with substantial experience and expertise in the industry. Thu your work will be in expert hands

Q: Hmm… So I get experts to do my work at lesser cost?

A: Not only that, by outsourcing the peripheral tasks of your company, you can focus all your time, labor and money investments on your core competencies. Thus, your business will steer ahead and you will have an edge over your competitors!

"Sounds great. I'm in!" That's how it ended.