Seventhman Blog

Keeping Agile in the World of Offshore Outsourcing

"agile outsourcing"Gone were the days of labor arbitrage as we enter a new era where finding qualified talent for your team is as quick as a mouse click.  While it is true that many businesses are looking offshore to cut down on cost, there is much more benefit to be had than meets the eye.  Those who were first to take a bite have now harbored mature offshore outsourcing relationships that resulted to an overall increase in service quality, as well as maximum flexibility when it comes to the organization’s enterprise strategy process.  Many of those who have been practicing offshore outsourcing see more improvement in their organizational agility as an effect of sending work over to global sourcing hubs.  But, innovation in this area is not without a multitude of challenges.

The Immigrant-Driven Economy

As I’ve been following the hot debate between Obama and Romney when it comes to immigration, I can’t help but wonder just how have these people born outside the U.S. helped in growing the economy.  In this infographic from Entrepreneur online mag, it will surprise you that more foreign-born workers and entrepreneurs are driving economic growth.. and the number is rising.  What’s more amazing is that they dominate service-based industries, regardless of the language and culture barriers.  There must be a stigma right now on local businesses taking jobs abroad, but I’m hoping that whoever wins the presidential race will not forget about the efforts of these migrants who are helping reshape the economy in such uncertain times.

How Do You Play the Sourcing Game?

While there’s news of GM bringing back 10,000 IT jobs on-shore, many other early adopters of offshore outsourcing may just follow suit.  Manufacturing is one of those areas where we’ll surely hear more news where sourcing is concerned.  But in this age of globalization where the fast beats the big, to survive the game, you have to multi-source… or simply, take the best of both worlds, of what insourcing and outsourcing can bring to your business so you can maximize productivity and increase your ROI.  As the adage goes, fortune favors the brave.  Many may still be reluctant to go local because they may not be able to scale their operations like what they currently do now overseas, like in India.  Investing in domestic resources may just not be a viable option for some.  Are you willing to take the risk?

Offshore Outsourcing and Agility

Some say that you can’t outsource agile for the simple fact that distance works against close collaboration among your team.  Can you really adopt an agile work process when it comes to outsourcing?  Though it comes with challenges, especially in the matter of managing people and technology, the good news is that it is manageable.  The core value of organizational agility comes with the right preparation, of taking baby steps, starting things slowly but surely, investing in on-site training, choosing the right partner, and having project managers who lead by example.  It’s all about taking advantage of the best available resources, onshore and offshore, that works for many successful teams.  In this case, we’re more likely to see hybrid sourcing models bloom just to make ends meet, as they call it.

The decision is yours to make.  Experiment and Learn.

  • http://joshuajacobson.weebly.com/ NormanRosario

     hose who were first to take a bite have now harbored mature offshore
    outsourcing relationships that resulted to an overall increase in
    service quality, as well as maximum flexibility when it comes to the
    organization’s enterprise strategy process.

    • seventhman

       Thanks Norman – I guess there are two sides to the story and lucky are those who are getting the ‘bang for their buck’.. so to speak.  Cheers!

  • http://leilaaustin.angelfire.com/ Clark Rocha

    Many of those who have been practicing offshore outsourcing see more improvement in their organizational agility as an effect of sending work over to global sourcing hubs. 

    • seventhman

      My thoughts exactly – thanks for sharing one of the positive benefits of offshore outsourcing.