Outsourcing Insider

Outsourcing Insider
Contributor since: 2009
Company: Infinit Outsourcing Inc.
Thanks Gigi for that, the statement was taken from a source, we are working to have the statement clarified.
Hi KC, thanks for the comment. It's really what we've been trying to point out to companies as well, 'Outsourcing' is not to just handing over the work to someone else and waiting for results. For a business, a lot relies on the work being done correctly, that is why as a company looking to outsource, you need to do the necessary footwork to make sure that when you outsource a certain part, that work will be done. If you don't do your homework and blindly sign on to something you do not fully understand, you put additional risk on your business. Also, regarding your comment, using a 'local' firm would put you at a disadvantage when an emergency situation arises in your locality. Not only is your business non-operational, but also your outsourcing partner. That's disadvantageous if you have a global clientele and one office only.
Your comments are appreciated, thank you.
With regards to the comment by Ex Blue and Still Blue, quotes mean that a particular phrase or line were taken from another source, quoting a particular phrase or line does not immediately mean that I or anyone else takes it as true. It can mean that this is what people have said or written about the matter, and with this article, that is exactly what it means. This is why links are provided, as you can see, so that everyone can read the sources for this article and judge for themselves.
Now I would just like to clarify that the article was not written to make anyone feel sympathetic either towards IBM or Indiana. I call it a sorry state of affairs because it is. I doubt if anyone at Indiana or IBM are enjoying this. Indiana is certainly mad at IBM hence the lawsuit. IBM is certainly trying to recoup the investment they made for the project hence the countersuit.
Well P2i than you for your comment. But I think its important to point out that experiences can vary depending on whom they outsource to. It's like when you're buying a mobile phone... Your experience will depend on the manufacturer as well as your service provider. Not all of them are the same. Which is why you cannot generalize an entire industry by the sole experience of your friend. Not all outsourcers "just thumb through their books and know nothing", and not all developers turn out software that's "difficult to understand an navigate". Likewise, not all Malaysian or Indian outsourcing companies operate that way as well.
Yes, even initially, with the original deal between Satyam and PSB, it included management of Finacle...It is strange that they want to use the software but do not want to enlist the company's help.
@Hankat. Make sense. No wonder smaller companies who are willing to take on small profits seem to be doing better than huge ones. You are right in saying that outsourcing “cuts labor costs and generates products in greater number if not better”.
@Alchemist118. I agree. The companies need to understand how they can change to survive or better yet to be profitable. If the current fiscal policies in their country is making their business less competitive then they have options of relocating them. If they think that demand for their products are not sufficient to sustain the business they can find another product offering or lower its cost to increase demand. There are so many options; it’s just a matter of courageously trying these alternatives.
@Freya. I agree with you. It’s not just about cheap labor but quality cost efficient labor. Clients naturally want value for their money. Richard Mills, president of Canadian Chamber of Commerce, reiterated that “the Philippines is a good place to do business for companies that are reducing cost and IMPROVING QUALITY. There are talented people with good English skills and lifestyle opportunities here are huge.” Another sign that they value and recognize quality at a good price is their continuous expansion here in the country. Convergys is planning to hire 1,000 more workers in Cebu this year for instance. If the quality of this cheap labor is below expectation then firms would naturally not push for expansion.
@chsagala. Currently, 90 percent of the outsourcing contracts of the Philippines are coming from the US which brings thousands of jobs to Filipinos. Europe signed outsourcing deals which amounted to $40.9 billion which was even higher than Americas $26.6 billion so imagine if the Philippine outsourcing can take just a slice of that $40.9 billion. Although, I doubt that it can alleviate poverty. These European firms would naturally expect high quality employees which are quite rare for the poor. The challenge really is for the Philippine government to invest in human resource development by creating well researched programs for students and working professionals that will equip them in taking a post in a competitive outsourcing company. The TESDA programs are a good start. However, they only provide short courses and basic levels.