SME sectors are yet to chop and change!

While it is the large  organizations  that  have  gained  tremendously  from offshore outsourcing so far, the small and medium enterprise (SME) sectors are largely un-touched by the Offshoring wave. Though the SMEs are holding back, it is a good time for SMEs to consider adopting this model as the first (low-cost labor business) and second (cost-focused technology services) waves of offshore global sourcing stabilized significantly.

The fear of road less traveled will exist. Nevertheless, it’s a matter of survival for the SME sector more than any other motivation.

SMEs may argue that the cost benefits that accrue to larger corporations by virtue of their huge volumes may not be so great due  to their relatively tiny volumes of work. But  there are  other  strategic  and tactical benefits of  offshoring that  they must  bite  on. I would  suggest  that  for  detailed  discussion  on the various  strategic  and tactical benefits  of  outsourcing  and offshoring, just  hit on  this link http://www.patni.com/global-sourcing/global-sourcing.html. You may find thought papers to understand the concept and process well. Two that I would recommend for beginners to the world of offshore outsourcing are - "Demystifying Global Sourcing" and "Guidelines for Planning on Offshore Outsourcing”. The former thought paper helps to navigate through the maze of confusing jargon around the concept, while the latter helps understand the process well.

In addition to this, if you browse through thought papers, such as "Increasing Shareholder Value through Transformational Outsourcing", you will find strategic benefits of going down this path while "Transformational Offshoring: Why & How?" helps build realistic expectations and also shows the way to achieve these. This will bring about a strategic shift in business through "transformational outsourcing" that looks beyond offshore cost leverage.

Some of the concerns SMEs experience are identified as follows –

1. Finding opportunities for offshore outsourcing
2. Choosing the right location
3. Selecting the vendor

Though the practice of assessing outsourcing opportunities is bumpy, a planned approach will reduce interruption in the process. The large global MNCs, which initially faced the obstacles and the way they overcame these, can be adopted as models to pursue the company goal faster.

The offshore sourcing wave had apparently begun as a cost  saving measure and considering its huge success, the time is now ripe for SMEs to earn certain level of offshore leveraged cost savings. The focus can be on tying together the vast talent pool for activities such as R&D, product co-development, product testing, analytics and back-office work, business processes and also in some cases, everything other than their core business.

Yes, to survive and thrive in the increasingly competitive and highly integrated markets for matured economies, it is mandatory for SMEs to hop on to the Offshoring bandwagon lest they miss the bus altogether!

Comments

[511 pants]

Thank you very much for the great information.

Thanks

511 pants

[TraderMens]

Please do it right now. I love it to read something about this theme