Question

Topic: Advertising/PR

How To Reply This Odd Question On Outsourcing?

Posted by Anonymous on 3/21/2005 at 6:37 AM ET 100 Points
Many a time we face question like this from our prospective clients in US. I am quoting it here –
“We understood that there are manifold of advantages in cost savings, if we outsource our project to country like India. But don’t you think this has now become little fashionable for we American companies to outsource our work and that is even sometimes at the cost of quality. Aren’t we loosing ground to European and Japanese companies?”

I know this is an odd question to reply, but expecting some satisfactory reply from this learned forum. It should be from business perspective only and it should create a good impression of mine for my prospective client. Allotting 100 points for this and hope this is sufficient.
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  • Posted by koen.h.pauwels on 3/21/2005 at 1:49 PM Member
    Hi,

    Like any good idea in business, (offshore) outsourcing may indeed have gone a bit too far in terms of 'fashion'. The litmus test would be whether, after careful consideration of savings and potential other benefits (I have heard about eg Indian call centers getting more US consumer satisfaction than their US counterparts!), risks and downsides (which may include firing local people to which you have an ethical commitment), a company would decide to go one way or the other simply because 'our competitors/benchmark firms in other industries are doing it, so we should too'.
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