July 25, 2005
Onshoring: Viable or Not?
Offshoring offered companies significant cost benefits. It still continues to do so in a majority of cases. Another benefit, everyone said was it allowed the companies to concentrate on their core tasks. However, the realization of hidden costs and other operational differences soon cropped up leading to major alterations in the cost
estimates. Other significant complications that arose were related to transfer of knowledge, quality, attrition, time and cultural differences. Offshoring took place so rapidly that there were bound to be some major slip-ups along the way. But the issue is completely debatable whether offshoring is a viable business model or not.
"My Dell hard disk crashed and it took 3 calls before I could understand what had to be done. I love my Dell, but I am less than thrilled with their technical support in India." a disgruntled caller comments from fastcompany.com blog
There is no denying that offshoring afforded huge benefits. At the same time, other options like 'Onshoring' are evolving. Onshoring involves outsourcing of activities to the non-metro areas in the same country as the clients where the labor, technical and other
operational costs are low. Costs associated with travel, training, project management dip while maintaining the advantages of outsourcing. Some companies that have burnt their hands while trying out offshoring have found that doing onshoring to be a beneficial
alternative. Another method of onshoring is when companies outsource their work to individuals who have Internet broadband connectivity at homes. These employees work from their homes thus offering better services than call centers, as they are better attuned to the local environment. And since the home based agents are generally more
inclined to work on part time basis it helps the corporations better manage headcount based on seasonal or sometimes even weekly requirements for agents.
However, companies are realizing that relocation of work has in no way affected the cost advantages offered by offshoring. Moreover, cost, as some experts like to say, is not the only reason companies went offshore. It was the technical capabilities of the offshoring destinations that attracted the American and European companies.
"I feel that the Indian support I have gotten was at least knowledgeable and earnest. Once on the Microsoft support line, after ten minutes of hold, a man asked if my machine was plugged in and then put me on hold for another ten minutes." a satisfied call experience as quoted in fastcompany.com blog
Any company that has or needs a contact center must carefully evaluate
their reasons for either offshoring or onshoring. And clearly articulate and agree on the 600 pound gorilla that needs to be tackled while making the selection.
--This Article was submitted by Shankar Sahai of Web Kiran LLC--
--
Did you enjoy this post?
Comments
Post a comment
« Companies move more accounting work offshore due to Sarbanes-Oxley | Main | Outsourcing Contract Essentials: Transparency and Defined Expectations »
Recent Comments