Couple of weeks ago I got an email educating me about the benefits of outsourcing to Pakistan Trust me that made me laugh. The first thought that came to my mind was, who would like to do business with a country which is almost on the verge of collapse…
Every other day we keep hearing about terror incidents which would make one assume it’s so damn difficult to survive there how can one ever think about doing business…
Pakistan and Sri Lanka are two countries which have more or less same talent resources at the same cost or even cheaper in comparison to India however they are years behind in terms of building conducive atmosphere which would attract foreign investment or entice major businesses to even think about outsourcing over there.. and one of the main reason is Security concern.
My fear is that after the mumbai incident now, would the same concern be thought of in reference to India
I hope this doesn’t happen however it won’t too long before it starts happening
Hindustan times reports that “A recent survey carried out by the Mahindra Special Services Group showed that a majority of corporates (97 per cent) view security as an area of increasing priority in future. However, very few corporates have taken any concrete steps to improve awareness about security and induce an appropriate mindset, the survey said..”
Security is a sensitive subject and should be dealt with great importance from macro to macro level The Govt. should do what it needs to and the business should contribute by doing what it can,because whenever such a terror strike happens it affects both of them adversely
Another article I saw on market watch said Mumbai attack would bring back the world’s focus back on terrorism
David Callaway is editor-in-chief of MarketWatch.adds that so far Obama’s stress was on economy n recession however the fresh attacks on Mumbai would try to bring his focus back to terrorism.
He further adds “ It is hard to believe that al-Qaida won't test the new Obama administration almost immediately to see what it is up against in the next chapter of the war on terror. While foreign policy rightly took a back seat during the last stage of the campaign to the wrenching economic troubles caused by the credit crisis, those days will prove short-lived. Iraq is still volatile, Afghanistan grows worse each day, Iran remains a wild-card, and in Pakistan, it really depends on the week.
1. Stay there, put up a brave front after all it’s a too serious issue and we need to address it collectively 2. To hell with the problem, Run away and start doing business elsewhere…
In case you are thinking about the second option tell me a single place where terror cant strike?
A quick look at the news related to outsourcing on the net and u can sniff the silent panic that is there in the outsourcing industry across the globe. Government is issuing statements that no one needs to worry about Obama’s stance as it won't affect them.However the fact is no one is sure about it, as this man did make tall promises to curb outsourcing.
How many of us think that Obama is like just another politicians who just made claims to get votes and he wont execute it once he enters the office.
Not many would bet on it…
Those who say it wont affect us… give these arguments in favor
• Cost factor is not the only reason _ companies outsource because of Scalability, talent, shorter turnaround time • Heavy investment made by US major companies like GE, IBM and Microsoft … • Globalization cannot be turned back without severely impacting US businesses • There are more complex issues to look into other than outsourcing • US is a champion of free trade and wont make any such move to affect it
The same old arguments they have been giving to counter the anti outsourcing lobby…
However The arguments given in against are
“Financial services companies, particularly banks, which got a fresh lease of life ,thanks to state intervention — direct infusion of capital or otherwise — could be pressured by their governments to bring back jobs outsourced to countries such as India.
After all, these governments need to justify using taxpayers’ money for rescue packages and need to be seen containing the damage to the real economy. India’s IT companies that were sanguine about the business outlook for the near term would need to reassess the situation given that foreign companies plan to cut IT budgets for 2009. ”
Source : economic Times
So what is the need of the hour…
Wait n watch…And keep issuing assurances in between…. NAH………….
ET further states that
“The steep decline in the number of clients and assets under management will not justify the cost of running large offshore operations. Clearly, the IT and ITeS companies including BPOs/KPOs need to find new opportunities and niches in a fast changing global economic environment. Settling for lower prices may not necessarily save the day for these companies or their employees.
Besides looking for new markets and clients across the globe, they would need to look deeper into the domestic market for opportunities. The Indian industry in general needs to deploy more IT solutions to cut costs, improve efficiency in production and delivery and contain leakages as they look for ways to cut costs to survive the economic turmoil. So do the central and state governments.”
What I think in my humble opinion
The first and last year of Obama’s tenure would of great importance, what he does in between would be less relevant.He loves playing to the gallery so expect a few eye raising, mass appeasing announcement in the first and last year of his presidency.
Even though most of us would hope that he treads on a middle path.. Something which pleases his home crowd and something which doesn’t affect the outsourcing industry adversely as well…
Still I m not ruling out a surprise new year gift for the Americans from the agent of change………………!
These are skeptical times for the Indian BPO sector. Some are ramping up like never before while some are downsizing which they never thought of.
So for some, the talent is still scarce and they think industry is facing talent crunch. While for some there is a problem of plenty...
For some it is market consolidation while for others it is the beginning of the end of the golden boom.
Before I hit the top gear let me give you a basic preview regarding what I am about to discuss.
The objective is to discuss innovating ways to deal with the current situation where you need to stay in touch with the resources on a continuous basis without giving any commitments, as u cant hire them (when u don't see any client requirement) and you can't let them forget your brand as the need may arise at any point of time.
Participation in a Job fair
You need to book a space (which is costly no doubt)
If u want to stand out of the crowd and suffocating presence of other recruiters then think about becoming one of the sponsors of the event and gain some extra coverage/exposure (which means shell out more money)
You and your competitor share the same space….
Offers and counter offers are just another headache…
If you think about giving it a miss then your competitor gets a free run and access to the quality resource (this would be self goal)
Reunion of ex employees
You selected them and are aware of their potential; I don't see any reason why shouldn't u woo them back
A less costly affair, no fear of competition, boosts your brand value and brand recall.
A Re union of ex employees may become an interesting and important event in the HR's calendar (at least in bigger centers where in employee strength is 5000 +) if given a serious thought
Organize or Sponsor a professional meet
High end guys (middle to top level guys) would give job affair a miss. How about organizing a professional meet exclusively for them? They won't mind driving down.
A more casual professional meet can be organized, region -wise to tap the passive talent who aren't looking for a change.
An Internal social network
I think in the times to comes it would become a necessity to have a social network of your own organization just like it's a norm to have your own website these days..
An organization’s internal social network can work wonders in keeping its flock together and connected.
This one is least expensive (just a one time cost and with far reaching effects).
These things may spice up a HR's profile and more interestingly improve your brand value and brand recall.
I know there many more things we may do, would try and put that all in my next blog
Right now
Inviting your mind-blowing suggestions and out of box thoughts on this.
The more the better... over to you
