What Is Your Global Outsourcing Strategy

If you are in the business of providing global outsourcing services, it is very important for you to understand that frequent reassessment of your strategy plays a crucial role for your business. It is good that you work hard and have a strategy for outsourcing work. However, even if your strategy is efficient enough to meet your business objectives at present, you also need to think whether the same strategy will be benefiting you the same way a few years hence. The business world today is changing rapidly. The growth and advancements in technology have a great bearing on this. Therefore, it is very much likely that in the next few years, circumstances will have changed substantially, and the same global outsourcing strategy that you are using now may not work for your business. That is the reason why you need to keep reassessing your strategies every couple of years.

Global Outsourcing Landscape

In order to understand this in a better way, you can examine the global outsourcing landscape. Location plays a very important role here. Like, for example India has emerged as the one of the most popular countries for outsourcing works. Bangalore was the primary location in India for offshore outsourcing till a few years back. But, in the last few years, a lot of changes have taken place. The rapid growth in the outsourcing industry in this city has resulted in high attrition rate. Therefore, if you consider several factors, such as costs and the impact on schedules, Bangalore may not make the best place for you to go for global outsourcing especially if you are planning for an expansion or thinking about starting a brand new operation. You should show a preference for other cities in India with a lower level of attrition.

Evaluation Of Other Countries

In order to develop an efficient strategy, you are also recommended to evaluate what other countries offer. India is perhaps the best country in outsourcing industry, and it is very much likely to only grow in the foreseeable future as well. Still, you cannot ignore the fact that in the last couple of years, several other countries have also emerged as a premier destination for global outsourcing works. You must evaluate the advantages they boast of and the challenges they face. This will help you make an informed decision and build a better strategy for your business.

Examining The Business Model

Location is a prime issue, but if you think from the strategic point of view, it also becomes important for you to re-examine your business model. For example, if one of your subsidiaries is only a small group of 20-25 people, you need to redesign that business model. In order to get a competitive advantage, it would be much better to partner with a global outsourcing firm that has the critical mass to attract.

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