Can Offshore Outsourcing Vendors Innovate?
I once heard someone say (actually that someone happened to be me!), "Offshore Outsourcing is dead!" But before you jump off your seat, let me clarify what I mean by dead. I mean dead not with reference to its importance, relevance or future; I mean dead with reference to its character - it is devoid of vibrancy, excitement, creation and innovation.
When offshore outsourcing emerged into the limelight decades ago, it was a disruptive innovation, challenging convention and redefining what could be done where, by whom and at what cost. It created a cheaper labor pipe, through which any transactional, discrete piece of work could flow.
Developments since then have resulted in the pipe growing fatter (a larger volume of work can flow through the system at a given point), having an ability to accommodate different types of flow within (applications, infrastructure, business processes), and in some cases, an increased rate of flow (how much work can be transferred to or done by offshore in a given amount of time).
Today innovation is high on the hype cycle. Every offshore outsourcing service provider cites innovation as its key differentiator. Catchy taglines, flashy messages appear on websites, brochures, casestudies...adaptive innovation, collaborative innovation, applied innovation...To prove the point they win innovation awards from organizations you've never heard of. Their casesstudies scream offshore outsourcing has made their customers more innovative.
They conveniently, selectively retrofit their revenue streams to produce an impressive, "x% of our revenues come from innovation" figure. At the core of course they chose the definition of innovation that suits them-new to the world is too hard, new to the industry, hmmm easier, and new to the company...very, very easy.
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Can Offshore Outsourcing Vendors Innovate?
Arpit,Interesting view point, and frankly I do fall in your views based on my experience. I have worked in several Outsourcing providers in India in the last 10 years, and last 3 years to help one such company to "innovate". Innovation is a fad for many outsourcing companies; help branding and winning awards. The root is however doing the same things customers asked them to do.
On the other hand, these companies can really help their customer to "innovate". But nobody knows how, and underestimate their capabilities. Another disturbing thought process is, innovation is not the first priority, but do what our customers asked us to do. I also blame the customers coming to such organizations for outsourcing their job not demanding or asking them to "innovate" for them. Their priorities have always been low cost, fast, bug free product, where as if they demand for "innovation" they will get what they are looking for.
What companies in the outsourcing business should also do is to walk the talk when it comes to innovation by implementing methodologies and process to help that guy doing the actual work. If there is a customer demanding innovation, I'm certain these guys can deliver what you are talking about the "new" stuffs.
PK
http://trizit.blogspot.com