Wipro’s New Head of BPO Shares Insights on Outsourcing in Today’s Economy

Manish Dugar is the new head of Wipro BPO. Dugar takes over at a watershed moment. “The near future features a volatile and dynamic economy. Thanks to technology and scientific advances, geography is history. Now, what happens in one part of the world impacts the whole world,” he observes.

The senior vice president has had a front seat for the growth of offshoring. He was there when it was all about labor arbitrage. His goal: to lead Wipro BPO through the next phase: producing business-based outcomes. Wipro calls this Business Function Outsourcing (BFO). “We are no longer a commodity player,”… Read the rest

Best Practices for Contracting Cloud Services

Wave 5 of the technology revolution is upon us. (Preceded, of course, by mainframes, client/server, desktops and then the Internet.) Cloud computing is a key component of this new wave.

Contracts, of course, form the bedrock of beautiful outsourcing relationships. How do you contract for cloud services? Are cloud contracts different from contracting any IT service?

In his book “Cloud Sourcing the Corporation,” Ben Trowbridge outlines a list of concerns. He points out that many of the current cloud providers have business-to-consumer roots. “Their current contracting practices place much emphasis on the provider and not enough on the corporate customer,”… Read the rest

A Sneak Peak Benchmark?

While the typical benchmarking clause provides the opportunity to benchmark the services, many clients find third-party benchmarks to be expensive, disruptive and time-consuming. Results may just as likely confirm that a vendor’s price is market competitive, and no savings are to be had. Further, third-party benchmarks by their nature pit client against vendor – making them all but impossible to complete – and risk damaging what otherwise might be a good working relationship.

There is a better way. Clients looking to confirm market competitiveness are increasingly relying on screening benchmarks (often referred to as “pre-benchmarks” or screening benchmarks) that help… Read the rest

Is offshoring causing unemployment in North America and Europe?

Stop people on the street and the answer to that question is obvious. Of course!

Does this happen to you, my outsourcing colleagues? You go somewhere. Start talking to people. They ask what you do. You mention outsourcing. And then you have to don a bomb suit like the munitions squad wears to shield you from the ugly invective that follows. Specifically, they are furious that American companies are using outsourcing service providers who are then offshoring the work.

This is 2011. We’ve been offshoring for a decade. I am still amazed at the misunderstandings out there about the… Read the rest

Offshoring is a two-way street. Indian companies actually send work to North America

If I hear one more person complain that outsourcing is the major reason for the seemingly intractable U.S. unemployment rate, I will scream. I live in Las Vegas, which has one of the highest unemployment rates in the nation. Here is a quote from a letter to the editor of the local paper dated July 13:

Headline: “Nation’s jobs have gone overseas to the detriment of the U.S.”
Letter: “All I hear is, “Where are the jobs? The answer is they are overseas. … I don’t see other countries sending their jobs to the USA. How come?”

The jingoistic… Read the rest