by Simon Black: The
I was on the
phone with a major bank last night. As usual, I had to navigate
their automated phone system hitting ‘zero’ until my finger
turned blue… I was finally forwarded to an offshore call center
where the representative was more keen to follow the script than
to actually help me.
all been there. Sometimes it’s perfectly fine, and other times
the communication barrier is just frustrating. When done right,
though, it can be a seamless step for the customer while adding
significantly to the bottom line.
is something that large corporations have been doing for decades
– usually farming out work to international markets in an effort
to minimize expenses. It’s still a debated practice, but I
believe that it’s an important flag that any entrepreneur should
consider planting abroad.
While you can
outsource plenty of work to service providers in your home country,
going offshore lets you take advantage of lower wage demand abroad.
This can be a much more efficient use of your capital.
So where are
the best places to establish an outsourcing flag?
your budget and workload, first you have to know what you’re
outsourcing. For example, requirements and quality for a one-time
project vs. a part-time assistant vs. a full time worker will all
vary from country to country.
India is still
a top destination for task-based work. There are a number of popular
firms that offer on-demand help, charging by-the-hour or per-task.
The advantage with hiring an outsourcing company is that you typically
get access to a team of outsourcers, and the firm will outsource
each of your requests to the most skilled person for the job.
thousands of information technology students graduate from Indian
universities every year, and communications infrastructure is reliable
within the country’s special IT parks. But India is now struggling
to meet demand, and its currency appreciation has reduced price
is rising to the challenge, marketing its legacy reputation as the
center of Soviet technology and scientific research.
out with the region’s fastest-growing software development
and IT industry. Labor and infrastructure costs are still mostly
buffered from the Eurozone, and Western venture capital funds have
made large investments into offshore development centers there.