Monday, Dec 13, 2004
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IN THE old days an American saying went: "If you can't fight `em, join `em". Now it's time to recycle the aphorism to express the reality of the global outsourcing opportunity. In other words, the name of the game is coop-etition, cooperating with the competition. And this, says market analyst IDC, is increasingly the way to go, if you want a piece of the outsourcing cake in North America. Jason Bremner, IDC's Director, Canadian Outsourcing Services, suggested in his keynote at the IDC Outsourcing Summit 2004, here on Friday, that not all outsourcing work ended up as offshored work these days: Quite a lot of the opportunity lay in the home country of the outsourcer. And if Indian players wanted to participate in this, the sensible thing was quite often to partner with a local player who knew the environment better. The other misnomer was that English was the universal door opener in North America. In fact, suggested Mr. Bremner, French was a perquisite for doing business in much of Canada — and Spanish was helpful if one wanted to work in some parts of the U.S. In his opening remarks, Pradeep Gupta, Managing Director of IDC (India), pointed to the new opportunities presented by recent entrants to the European Union mostly from East Europe — and their urgent need to change over to EU practices. There was another wave of opportunity in South America, where the economies of many nations were booming once more. Remote Support Solutions was the next wave of technology in the outsourced business, said H. R. Shiever, Managing Director (Pacific Region) with Citrix Online, a recent offshoot of the infrastructure company. Tools like `GoToAssist' and `GoToMyPC' (Corporate) were useful to leverage the Web for competitive advantage. Other key presentations came from David Tapper, Director IT Outsourcing and Utility Services who spoke on Utility Computing; Prashant Sahni, CEO, Technovate Solutions, on multilingual BPO and Marriane Kolding, Research Director, European Services Research Group, on the opportunities in Europe.
It's multi-country now: neoIT
A leading Indian-owned, U.S.-based offshore advisory firm, neoIT, has just released its annual roundup of predictions. Its conclusion: "India will continue in its leadership role as the supplier role model". But lest we get complacent about the competition, it adds: "China and the Philippines are expected to mature most rapidly in 2005, with Central Europe, particularly Poland, Czech Republic and Hungary following close behind." For the client market, neoIT co-founder and Managing Partner, Avinash Vashistha, says: "U.S. companies will no longer be the dominant buyers as Western European firms create strong demand for offshore services." And for tomorrow, the next `big' outsourcing industries are said to be manufacturing, healthcare and retail. The recent shedding by GE of its India-based call centre business may be a pointer to more mergers. neoIT also predicts the emergence of multi-country supplier and delivery models across the globe, from India to China to Central Europe.
Anand Parthasarathy
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