Outsourcing has become a daily-use term in talking shop for modern business owners across the globe since this phenomenon that first became popular in the early 80s , has taken the concept of business functionality and shared profitability from divided resources between remote locations and companies to a new paradigm. While the smaller and developing nations like India, China, Philippines and certain cities in South Africa are among the preferred nations, no doubt India has been leading the way for the last two decades in being the preferred outsourcing center for many industries, mainly IT and medical transcription units.
With the stronger economy and the way the rupee is rising, there have been understandable concerns for the foreign investors looking to outsource more than simply their non-core operations as salaries are rising for the highly qualified professionals available here besides other concerns like lax fraud and disaster management policies being in place and a certain complacency setting in on the Indian outsourcer front.
While the case was not so till about 5 years ago, with the growth of competent outsourcing centers opening up and operating pretty profitably from 2 and 3 tier Indian cities and the growing rate of attrition from these (once trained, many professionals move on to greener pastures leaving scope for loss of business plans, suspect productivity levels and lowered profitability with having to train new staff), there has been certain disadvantages of outsourcing to India noticed by investors.
Besides this, more disadvantages of outsourcing to India were provided by the very feature that once began as a lucrative advantage for the investor: that of utilizing experts from outside their business entity to perform specific tasks that they performed in-house; given the knowledge that the future of the business depended entirely on them, many were given to suddenly developing egos, making unjustifiable demands and working less productively since the project was already paid for. This complacency spelt doom for the less ethical outsourcing firms in India as the foreign investor looking to lower firms costs by redirecting energy directed at the competencies of a particular business and make efficient use of labor, capital, technology and resources from the India-based firm, ended up with egg on his face.
He discovered too late, the disadvantages of outsourcing to India included certain infrastructure instability besides
Lack of proper management related to offshore resources
Confidentiality of information was at risk
Time zone differences that were not always a benefit
Cultural differences that were hard to ignore as far as business ethics were concerned
Language barriers and work-force having different levels of communication competency
Uncertainty of legal rights
Geopolitical instability
You can avoid all these disadvantages of outsourcing India by choosing a reputed, established and experienced firm likehttp://www.eupath.com" target=new> www.eupath.com a pioneer in assessing, planning, implementing, managing and optimizing the best business model for the project you want to outsource. Dropping a mail at info@eupath.com is the way to start!
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