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| WHY |
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To use the words of a scholar
of the phenomenon, "companies start up for cost, stay on for
quality, and then realise that they gain a lot on managerial initiative". Many clerical activities have a high labour content. Those are activities where the human being must step into the process and use his or her decision-making capabilities -interpretation, validation, translation, intuition, transformation, etc. Many efforts have been devoted in the past to reduce these costs through the use of automation, but with poor results. Computers have proved to be wonderful tools to manage high volumes of data and to execute instructions, but very poor at making decisions: when it comes to decision making there is no substitute for the human being -not yet at least. Offshore outsourcing is rapidly becoming popular as the alternative to automation of these clerical activities -an alternative that works, is reliable, and does not require a large investment. If saving has been the first reason for the choice, the early adopter experience has shown that the bigger benefits often come at a later stage, and originate not from cost reduction but rather from value creation. Service quality, matching of needs, execution speed, workload flexibility, process improvement: all these are results observed in correctly-set-up-and-managed offshore outsourcing relationships -results that have translated in strong competitive advantages for the adopting companies. |
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