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

The Power of Middle Management: Keeping the Good Guys on Your Side

The middle managers of any established business have the responsibility to operate the core of the business, and hold a wealth of knowledge about what works well versus areas for improvement. When sourcing becomes an alternative for any part of the business owned by middle managers, it is imperative to involve them and make use of their deep understanding of the operating requirements.

Engaging middle managers in the details surrounding the sourcing process will:

  1. Enlist their vast operational knowledge
  2. Convey your value and trust in them
  3. Keep them well informed so they can communicate appropriately to the broader

Read the rest

What I Learned about Outsourcing at the SHRM Conference

When you are in the midst of your everyday life, it’s easy to get caught up in the details and not see the big picture. But when you step away, you get a fresh view point.

Two weeks ago I joined 13,999 other HR professionals from 73 countries to attend the SHRM (Society of Human Resource Managers) annual conference. I had no idea how pervasive outsourcing is to this crucial business process. My epiphany: Outsourcing provides the underpinning of the HR process today worldwide.

For example, a session by Gary Kushner called “The Changing Nature of Work: Five Global Trends… Read the rest

Of Poodle Puppies and Pricing Models – a New Normal?

I recently decided to get a puppy, and a poodle seemed like a good, “normal” choice. But I wanted something “new,” not your standard, run-of-the-mill poodle. So I did an online search on hybrid mixes, and some of the names were so appealing! Boxerdoodle (Boxer/Poodle,) Cockapoo (Cocker Spaniel/Poodle,) Jack-A-Poo (Jack Russell Terrier/Poodle,) Labradoodle (Labrador Retriever/Poodle,) and Poogle (Beagle/Poodle,) to name just a few. But after researching some of the breeds, I realized there was not only the obvious poodle overlap but also some subtle differences among them, and I needed to consider all characteristics before selecting the best option for… Read the rest

Five Trends Changing HR and HRO Today

Ten years ago large multinational HRO buyers wanted to implement the HR solutions in their ERP platforms. They wanted technology for HR transactions and data. Now that the IT is as reliable as a dial tone, HR outsourcing providers can step up to the steeper challenge of today: “CXOs are asking the HR executives to play the role of strategic business partner,” says Maheedharan Thiagarajan, head of solution designs — HR services for Infosys. “Today, HR leaders need to do more than oversee HR transactions.”

How? Maheedharan says HR executives today must have “a laser focus on talent development and… Read the rest

Why You Need a Sourcing Advisor

When was the last time you purchased a home? Last year? A few years back? Five, perhaps 10 years ago? Did you hire a realtor, or did you go the whole way through on your own? For most people, domestic and internationally, the decision to purchase a home is one of the single most important and largest financial transactions a person makes and experiences. As a potential home buyer, you have limited knowledge (even within the locale in which you focus your search). At best you have a handful of experiences in the process (and those are usually a few years removed), and you lack access… Read the rest

The Challenges of Selecting your Cloud Provider

Ask a handful of experts today, “What is Cloud Computing?” and you will likely elicit a wide and varied range of responses and definitions. For a provider, simplifying their explanation of cloud would cause them to lose a competitive advantage over others in the industry. Making a decision regarding the best option for cloud computing is a complex and perplexing decision due to a number of reasons.

Selecting a cloud computing provider can be a challenging adventure. You must decide why to engage your operations using this type of service, select the business processes and applications to be delivered in the… Read the rest

Plan Your Work, Work Your Plan

In recent work with a client and major IT sourcing provider, I discovered how important organization really is! Getting organized to begin a transition with multiple towers is critical to your success, and perhaps more importantly, to reducing transition management efforts.

In this particular case, it was clear the transition planning was aligned by tower rather than for an overall transition effort. The provider, with good intentions, created a transition reporting structure with leads for each tower. The leads in turn created their transition plan, in some cases a Word document rather than a MS Project plan. This would no doubt add challenges to… Read the rest

Best Practices in Outsourcing Contracts for Buyer Protection in Provider Mergers or Acquisitions

As the outsourcing service provider landscape continues to shift through mergers and acquisitions, how can buyers construct their contracts to protect what they envision in the relationship despite a change in provider ownership? I spoke with two attorneys, James Nelson and William Russell in the New York office of Venable LLP, who frequently counsel clients on mergers and acquisitions and outsourcing matters, and asked them about insights and best practices to protect the interests of buyers of outsourced services.   

Q: Sometimes when a service provider is acquired, some of the service delivery nuances that were in place with the priorRead the rest

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