Monday, November 27, 2006

The otherside of Offshoring (2)

Continuing from the last Post ..................
In my view offshoring will continue due to the following arbitrages that make the world services market imperfect.Doing justice to my education I have developed an acronym .
It's "SPALID" arbitrage........... ( Help me devise a better combination)

Spatial
Process quality
Labor
Attitudinal
Intellectual
Demographic

One can get enough material on the web regarding the S ,P ,L and to some extent D and off late I .So will not increase the load for google search algorithms ..But I will touch upon Attitudinal aspect first.
A typical Indian at onsite slogs a lot for meeting a delivery deadlines .But the client person doesnt simply care much about it. If it's world cup football time he will go to watch football . Same for Christmas etc.......It's the so called earned leaves .........
personal aggrandizement comes first in most of the cases barring some extreme ones.but the situation is totally different back home in India .
What I am trying to drive at is that "Even if I am a vendor employee ,I am also committed to deadlines and I expect the same from the client." At the end of the day , I will be the happiest person in this world ,if the job is well done.....

While it might not be an initiator of offshoring ,but it will continue to be a lubricator.

Second Process Quality:
The success to offshoring is documentation ,documentation and documentation and more of it

This is required to
1) Make knowledge independent of individuals
2)Smooth transition between client -vendor ,vendor-vendor ,peer-peer ..
3)Effective tracking

One of my clients ( other local vendor complained) complained that "ur ( indian ) Use cases are text heavy and lot of duplications of info .............. " and this is a cultural issue.( read diff between Indians and the locals)

me - So what is the problem ? the objectives of the text heavy use cases were 1) to reduce the no of documents that our developer needs to refer while going through the same.
And 2) to document everything so that a new person in a project team can start delivering on day one..... ( meaning I don't care if u leave tomorrow) .......
Though he did seem to be convinced , he posed a difficult question to me .

"If you make all the processes independent of the individual and he doesn't have any competitive advantage being there& done that , then how u keep ur employees motivated??"
Honestly I didn't have any convincing answer........

A point to ponder for the BPO and Software vendors in India .....

2 comments:

Jyo said...

Interesting read!!
Would like to discuss in detail later.

Unknown said...

Comments:

>I tried devising a better acronym, couldnt come up with one!

> On the attitudinal aspect one must also look at possibly what happens in NA, I guess we will see a different approach to work and deadlines there.

> One more point I think we should dwell more on the intellectual arbitrage in offshoring (I know this is a takeaway from Frank's interview) but I feel we should ponder on this aspect more!