Is offshoring good or bad, or both?
Prof. Murugesan raises some interesting points in the guest blog entry, leading with the query “What Drives Offshoring: Just Low Cost or Other Factors?”
I agree with Prof. Murugesan’s viewpoint that “In a flat world, the national boundaries become less significant, and the winners are those who capitalize on capabilities available globally.” Extending this, one could also be asking: what are the implications of this flattening on Project Managers?
A lot!
Most managers recognize the need to be aware of the “external operating” environment, especially searching the landscape for trends that could impact their initiatives, programs and projects. An understanding of the market dynamics, competitor strategies and trends can impact their day-to-day functioning too….especially when it comes to pursuing new opportunities, responding to proposals, RFPs, RFIs and the like. This awareness also helps in advising clients and stakeholders on emerging thought leadership, especially when it comes to choices and options that are available to them (the business leaders)
I tried to address this query in the section “Offshore Outsourcing: The Strategic Imperative” where I discuss the key drivers behind offshoring that include Limited Talent pool, Cost Pressures and the Innovate vs. Sustain dilemma. This is a topic I also blogged about while discussing “Offshoring as a business tool”
In a nod to this trend of “moving up the value chain,” a Forbes analyst, in a recent article “Consultants From Chennai” talks about how “Indian firms are moving into high-value strategic advice faster than anyone had expected. Just ask IBM, Accenture and EDS.” [I would prefer not calling out firm names..but what the heck.. Just quoting the article]
As far as Prof. Murugesan’s query "Is offshoring good or bad, or both?" goes... I am tempted to say “It depends.” well, I am a typical consultant; what do you expect?
