Developing Partnerships to Leverage Regional Competencies

Over the last decade, we have witnessed a paradigm shift in the manner in which companies are going about managing their outsourcing operations. Few organizations are persisting with the age-old practice of creating and managing a full-fledged global set-up, using internal resources. The development and management costs of such an establishment have made this an unviable option.

As a result, many organizations have reconsidered their outsourcing strategy and have successfully implemented the more cost-effective approach of entering into long-term partnerships with service providers and thereby leveraging the global access, localized infrastructure, and managerial & technical competencies that these service providers have developed over the years.

Adopting a 'Horses for Courses' Approach

A common misconception about outsourcing (part of) a company’s business processes stems from a limited understanding of what the term ’business process outsourcing’ connotes. Many visualize this as an enormous monolithic entity, in a single location and backed by a multitude of multi-lingual, multi-functional personnel.

The reality, however, is quite different. Most successful global service providers, recognize the practical limitations of such a business model. Every region has its unique strengths and limitations, in terms of skilled labor resources, multi-lingual capabilities, cultural differences, and even in terms of functional expertise. By recognizing these different skills and capabilities, companies can successfully allocate specific activities to those regions that can handle same in the most effective manner.

Today’s successful service providers have succeeded primarily because they have adopted a clear, focused, 'horses for courses' approach: by leveraging on the unique strengths and capabilities of a particular region, they are able to offer the best of talent and skilled resources at the most competitive cost structures. By directing low-value operational work to low-cost manpower regions and utilizing the more highly skilled, highly educated regions for specific high-value, specialized projects, these companies have built successful and scalable business models which harness the unique strengths and resources of particular regions.

Seen at this level, globalization is a highly complex scenario, relying on a company’s ability to choose the best global resources to fit the range of services supplied, for maximum advantage. Choosing a partner with a global presence and a thorough understanding of the advantages of each location makes an essential difference when planning to outsource.

For more information about our services please contact:

Mar Hernandez m.hernandez@amicorp.com