Comment Outsourcing Done Differently (Score 1) 653
I have not read all the comments, but it seems like most regards the scenario: Company A (somewhere in the high-salary parts of the world) employing a (different) company, B, (somewhere in the cheaper-salary parts of the world) to do something for them. This can be very difficult for all the reasons stated above, but there are actually alternatives that -- to a certain extent -- make sense.
I used to work for a very large, multinational consultancy and they did what other, large companies could do: They established a subsidiary in India and used that for a multitude of activities including software development and hosting.
They obviously established a management structure in India that reflected the company's goals and values, but they also did the very smart thing to second the Indian employees to other subsidiaries around the world like USA and Europe. This gave the Indian employees a practical insight into the culture and corporate culture of these places, and provided them with a much valued network of colleagues around the world. It was a learning experience for the American and European people too, experiencing these (often extremely) hard-working and frugal people.
I have no actual figures to back this up, but I got the impression that the initial turnover of people were fairly high as some of the Indian people could not readily adapt to the somewhat different work ethics in America and Europe.
From what I know, this scheme seems to work well. It is not as cheap as a pure outsourcing solution to one of the really low-priced providers, but on the other hand, it is substantially cheaper than using local people in America and Europe.
I used to work for a very large, multinational consultancy and they did what other, large companies could do: They established a subsidiary in India and used that for a multitude of activities including software development and hosting.
They obviously established a management structure in India that reflected the company's goals and values, but they also did the very smart thing to second the Indian employees to other subsidiaries around the world like USA and Europe. This gave the Indian employees a practical insight into the culture and corporate culture of these places, and provided them with a much valued network of colleagues around the world. It was a learning experience for the American and European people too, experiencing these (often extremely) hard-working and frugal people.
I have no actual figures to back this up, but I got the impression that the initial turnover of people were fairly high as some of the Indian people could not readily adapt to the somewhat different work ethics in America and Europe.
From what I know, this scheme seems to work well. It is not as cheap as a pure outsourcing solution to one of the really low-priced providers, but on the other hand, it is substantially cheaper than using local people in America and Europe.