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Why do some people get outsourcing wrong?

Ever given it a thought?
Real thought.
Not – oh, these Indian service providers are like that…
Or, what else can you expect from an offshore freelancer?

But, real analysis into why some outsourcing ships sink like the Titanic while others sail into safe harbors.

It is actually no rocket science. In fact, it is as simple as making the right decision. It is like wanting to graduate in law but checking out all the options for an engineering college. Who is to blame then? The engineering colleges or the person who was making those choices?

So, back to outsourcing. The real reason why some outsourcing ventures fail is because:

1.There is no real credible information about how to outsource
2.A lot of the information that is out there is, unfortunately, poor, false and hugely biased.

Being misinformed about the real dos and don’ts of outsourcing can prove to be costly as one lady experienced. After outsourcing unsuccessfully to India she actually set up an offshore base in the Philippines and then slammed Indian outsourcing vendors for giving her poor service. Her entire premise was flawed. She was comparing ‘oranges to apples’, so to speak. Instead of offshoring, had she outsourced to the Philippines, chances are high that her experience would have been exactly the same as it was in India. The fault does not lie with either country or its service providers. The fault lies in the nature of work that was being considered for outsourcing. Why? Because the work she wants done is simply not compatible with the outsourcing business model. Her need quite clearly is to retain in house project management control and yet this is not being done “in house” when she outsourced. Of course her experience was bound to fail.  Here the difference in result is not a reflection of India or the Philippines but a reflection of the fact she has tried two different business solutions and one solution has trumped the other.

And, here’s the key deciding factor – not ALL jobs can be, or rather, should be outsourced. 

Hers is not an isolated case. Unfortunately, there are scores of people like her who have been fed a steady dose of misinformation regarding outsourcing, outsourcing to India, and how it’s the one sure recipe for entrepreneurial disaster.

Nothing could be further than the truth.

Carting your entire operations to a foreign country, spending ludicrous amounts of money in setting up an office, hiring staff etc is not just highly efficient but also non-beneficial. You can attain the same results, have your own team offshore, quicker, faster and cheaper without moving from your desk. How?

Again, lack of genuine, credible information on the internet is responsible for scores of SMEs not even being aware that there can be a painless alternative to both freelancing as well as expensive project outsourcing companies – neither of which really suits the unique requirements of every SME.

Cussing Indian vendors for being inept, unscrupulous and lacking professionalism is doing injustice to a nation that gave birth to this phenomenon that has literally impacted businesses across the globe. Today, the outsourcing industry in India is significantly worth $70 billion more than the Philippines. Is it possible if India doesn’t have some serious talent?

The bottom line is that if you outsource/offshore in the correct manner, you can get stellar results from both India and the Philippines. Outsource wrong and it does not matter if you are partnering with a company local to you in the USA, it will go wrong!

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