"Its the big fish eating the small fish"- Holds true not just in blue waters but also in the global marketplace of ITeS Industry - Kazim Ali Khan Ma Foi India
I read a book a few months ago called ‘The rule of three’, by Jagdish Seth and Rajendra Sisodia that examined patterns of market evolution in the context of radical disruption that can occur when technology, regulation or a new entry in the marketplace succeeds in altering the rules. In a nutshell, it described the phenomena where three companies evolving over time dominate any industry.
My feeling is that if all such disruptions happen at one time, the magnitude of change may swing through from companies to impacting economies. The current time is such — where the global slowdown, collapse of commodity markets, geo-political risks, the growth in the iPod culture, cloud computing, green technology, sentiments of US on outsourcing, job losses, etc., are all happening together, amidst India’s attempts to sustain it’s dominance in the BPO market globally.
It is surely a matter of concern today for us (the government, industry, professionals and institutions) to resurrect policy frameworks regarding labour, education, technology and legislation, and create an ecosystem that is best suited to sustain India’s leadership position vis-a-vis emerging competing destinations. It is important that India maintains its strategic advantage in terms of demographics, outsourcing experience, etc.
At the same time, India must also recognise the shifts taking place that are shaping new paradigms in the BPO industry. These are:
It is also important to note that buyers are shifting focus from cost reduction to cost avoidance, value to value adds, revenue to risk sharing, performance to enhanced productivity, revenue management to hedging Forex exposures. In the effort to manage cost and mitigate risk exposures, explicit contractual contingencies are provided in the service contracts. Risk mitigation factors include not just Forex exposure but also:
Business model transformation is now at a stage where the top companies in the world of outsourcing are talking about a mix of domestic, nearshore and offshore shared/captives besides hybrid models. It is now time to see high-end services getting outsourced to India. Colt, Walt Disney, MGM, Warner Brothers and many others across the spectrum are betting big on the Indian market.
I would like to summarise the need by quoting Donald H McGannon who has famously said: “Leadership is action, not position.”
Ethical or Legal - Legal Process outsourcing : Kazim Ali Khan Ma Foi
Benjamin H Brewster once said “lawyer starts life giving $500 worth of law for $5, and ends giving $5 worth for $500”. Interestingly, F W Taylor father of scientific management would have referred the above condition as misalignment of labor, task and rewards system.Emerging world of Engineering services outsourcing in India - Kazim Ali Khan
Bill Gates once said “Success is a lousy teacher. It seduces smart people into thinking they can't lose”.Anything today in the name of outsourcing is catching focus of attention. Needless to mention the word BPO is signature of India’s success in the world of global outsourcing. At the same time we need to be wary of the competition that is growing around us.