“When the music changes, so does the dance” – African Proverb
We introduced the Homeland Onshore Model five years ago. At that time, the economy was in recovery mode and unemployment really wasn’t an issue. Those who wanted work could get a job. The market for I.T. outsourcing was really taking off, but no one really seemed to care too much. After all, companies were anticipating great savings, and those who were impacted here either found other work or got out of the business altogether. Most of the I.T. managers we spoke with at the time really liked the HOM concept, but were still being mandated to go offshore.
Five years of actual execution and hindsight have provided some much needed clarity. Many companies have learned that offshore outsourcing isn’t the silver bullet it they were hoping it would be. Hidden costs, (ex. rework, high transition expenses, travel, turnover, dollar devaluation, expensive on-site/off-site ratios, additional management) risks, and other issues have many firms questioning their offshore strategy.
Lately, I have been spending a lot of time speaking with very qualified people who are currently looking for work. They are not just I.T. people. Many come from finance, accounting, human resources, marketing and legal backgrounds. Budgets being what they are, I fear that the ranks of the unemployed may grow larger in 2009.
I sincerely hope I’m wrong.
And yet, even with unemployment growing in this country, we still see stories about companies looking to save money by shipping jobs overseas. (Computerworld November 10, 2008).
It appears as if a company’s first reaction to saving money is to look some where else. I can understand that because that has been the accepted solution for the last 8 years. However, the economic landscape is rapidly changing in this country, and huge opportunities exist for firms that are open to looking at fresh and innovative ideas.
The solution to our spiraling unemployment is not to move jobs overseas, but to take advantage of lower cost areas that exist throughout the U.S. by allowing workers to work remotely. People outside the big cities cost less because the cost of living is usually much less in outlining areas (Basically the same thinking behind offshoring). The remote worker wins because they no longer have the commuting costs, and gains between one to two hours a day of additional family time. The cost of living differences combined with higher unemployment may mean even further cost savings for the employer, a trade off many workers may be willing to make for a better quality of life and lower gas bills. Albeit on a small scale, we have found this model works extremely well and has allowed us to directly compete with offshore resources when all the costs were added up.
Need proof? Check out this article from Networkworld in 2005. It outlines how companies like Office Depot and Jet Blue are utilizing U.S. based call center agents that work from home (Homeshoring) instead of overseas agents. Apparently, it’s working very well.
How many jobs can be created by taking the Homeshoring approach? How many jobs can we save by taking a different path to cost reduction? Maybe it’s time for companies to think outside the box by looking within. When we implemented the Homeland Onshore Model, we proved that domestic workers could compete directly with offshore resources. Notice I’m not advocating protectionist policies; I am saying we can compete. This is America, and we always find a way to solve even our most dire problems. After all, we are amazing innovators. America is home to world’s most productive workforce. It’s time to take a new look on how we can deploy them to everyone’s benefit. We have the technology (high speed internet) to solve our unemployment challenge, let’s use it.
If you’d like more information about how the Homeland Onshore Model can benefit your organization, please contact us at: Info@ITOnshore.com.
If you’re a candidate and would like to work from home, please send your resume to: resumes@ITOnshore.com
December 1, 2008 at 10:47 am |
Nice posts – why haven’t I seen this one? And I am on a lot of blog lists – very weird – okay so here are my thoughts, in no particular order and it may or may not be on point.
First of all – the globalization of the planet is here and there is nothing anyone can do about it nor should they hate it – we needed globalization. Is there a lot of work to be done – absolutely, are there policies that need to be put in place, abosolutely, have we outsourced by the seat of our pants, absolutely. So, mistakes have been made, we all made a lot of money, we all spent a lot of money and frankly here we are….you may not like it…you may be madder than hell – but let’s fix what we can, live with those things we cannot change.
Alright, do I think companies are going to be able to stay in the traditional mode, no – do I think there are going to be more companies like mine that specialize with top talented people who will deliver the needs of the companies quickly without massive entry level people and the companies can see results – yes. So, the onshore model will work for some, won’t work for others. So, what is needed right now to make the decision to utilize the Homeland Onshore Model – well you won’t like what I have to say – but that never stopped me before –
1. Companies need to reassess their managment – you promoted and hired duds and they need to be accountable and no more using numbers- which by the way are total bogus numbers- to accountable for their decisions. When was the last time that the CFO actually did an audit of the true numbers of contracted amounts versus delivered goods and services and the payments received – plus what type of profits margins are you getting?
2. It is now time to hire those consultants that can help you in the 3-6 month range with goals and getting you to lower costs and increased revenues with brand awareness and not hire the Big 5 that is going to suck you dry and you still have nothing to show for it – we are in a recession for at least 36 months, it survival mode, no more me-too –
3. You must be able to get those people who can uniquely position your company for gainig customers – you can no longer just work on your “business” and not realize that there is another world out there – you know the scary part – the customers who have wants and needs – it is about corproate responsiveness to client needs – and remember sometimes they don’t want to speak with an international group or a recording or a call center rep – they need real people who can get things done and make decisions based on good data.
So, reassess your team, empower your people to make real-time decisions cause you trust their ability to what is right the customer and your company and keep your brand strong, hire a consulting company that can advise you, be green by hiring Homeland Oshore Model and get into the current and future way of doing business -otherwise we won’t see you next year cause you will be out of business.
Sounds a little strong – no more can you sit back and have “yes” people tell you what you want to hear – life is different – now let’s get back to the basics of business, have a few laughs, make a little money, put your company into survival mode and just breathe -