Filed under: Advantages/Disadvantages of Outsourcing/BPO, Other Outsourcing Destinations, Outsourcing in the News
There’s been a slew of outsourcing articles in the past week, resulting from Brown-Wilson Group’s annual Black Book of Outsourcing, which identifies the 50 best-managed global outsourcing vendors.
Here are a few that we found interesting:
Critics Challenge Outsourcing Rankings, BusinessWeek:
“Brown & Wilson Group’s principals defend their way of doing business. Scott Wilson and Doug Brown say their survey, which results in multiple rankings, is the world’s most independent and objective rating of outsourcers.”
Report: India losing grip on outsourcing ecosystem, ZDnet:
“Despite their slide on the list, Indian players remain a major force in the outsourcing industry, and outsourcers in China are still nowhere close to replacing them.”
Philippines tries to edge out India for U.S. outsourcing jobs, Christian Science Monitor:
“The BPO market [in the Philippines] has grown by nearly 50 percent a year in the past three years alone, generating nearly $5 billion in revenue last year. That’s still only a fraction of the business that India – the global market leader – captures.”
Outsourcing Looks Closer to Home, Wall Street Journal:
“As the world becomes smaller, companies are no longer considering moving offshore as the most cost-effective and efficient way to outsource, but instead are asking: what does the business demand? This transformation means outsourcing is seen as less of a crutch for the technically deficient or work-force challenged company, and more of a strategic tool. ‘It is becoming a matter of looking at the world as a marketplace of skills and products and deciding what gets done where the best.’”
How Offshoring Affects Customer Satisfaction, Wall Street Journal:
“If a company can save more by sending customer service overseas, it will have more opportunity to devote at least some of that money to upgrading its business.
In addition to considering whether or not to offshore customer service, companies should consider whether back-office functions such as information technology may be suitable for offshoring. Our study found that back-office offshoring had no effect on overall customer satisfaction. So the savings a company garners this way aren’t offset by dissatisfaction among customers.”
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The Black Book of Outsourcing has indeed accomplished what so many companies have aspired towards. They have achieved international status, regard and influence in one of the largest markets in a super-efficient method. As their influence grows, so will their critics and their supporters. That is fall out of being influential.
Their contribution is reporting the real pulse of the outsourcing users globally. Big vendors don’t like to be outside the Top Ten…and Indian vendors feel its dishonor to not be #1.
No wonder these three companies – all who have their largest employee groups in India – are so offended and critical. The Business Week reporter tried to aid the three Indian outsourcing firms to deflect the bad publicity from their client dissatisfaction but its backfired because of sensationalism and story mistruths.
Its drawing more attention and respect to The Black Book of Outsourcing. So important and they deserve it.
Comment by Emily Dean July 12, 2008 @ 8:01 pmHi Emily,
Thanks for your comment. It’s an interesting perspective and one that needs to be considered for the reasons you outline.
For a small player like us, all the reporting around the Black Book is good – It shines a light on the outsourcing industry and we think gives our prospective customers another pause for consideration.
Comment by TPL Staff July 13, 2008 @ 11:47 pm