Angsuman's Java Blog

News and views from my perspective as a Chief Software Architect and CEO. Focused on Java and Web Technologies.

Sunday, October 12, 2003

Thoughts about Outsourcing in response to an email in Ryze

I have outsourced work and now provide outsourcing services.

Why? I have seen a need in the market for high quaility work done at competitive price, more so when the economy is down. It would be a strategic blunder for any corporation today not to consider outsourcing as a strategic initiave to prosper & even survive in today's marketplace.

Having said that lets look at the other side of the coin.

I have seen a cry that - wait these people from Russia, India and China are taking our jobs, lets stop them!

Interestingly the same cry was heard from small businesses in India, China, Brazil and other economically dis-adavantaged countries when corporations from USA were capturing and are still capturing the market in those countries. And they wanted the government to stop them which didn't happen as they would have liked due to external constraints like pressure from the US government, GATT etc. So today we have pepsi & coke & domino's in every street corner, whereas the local brands have all but dis-appeared! And my little niece likes best a Pizza ("Pizaa", as she says it with an eye of love) from Dominos.

Either they are both wrong or they both right!

Either you create a closed society where US doesn't do any trade outside the country and US corporations has no business interests outside the country in which case you can also close your doors to outsourcing options. Or you vote for opening the barriers to business everywhere which means US business thrive outside the country also and non-US business do the same inside US too.

This cannot be a one-sided coin. The corporations in an open economic climate will go for options that better their chance of success.

The best response to the challenge would be to optimize your process so you can effectively compete with the outsourcing options and/or leverage the outsourcing options yourself to position your business for success. Re-orient the business strategy to that effect and you will see that outsourcing is a boon not to just corporations but small businesses and individuals.