Trust only movement. Life happens at the level of events, not of words. Trust movement. ~Alfred Adler
The bombshell dropped by Satyam chairman Ramalinga Raju is undoubtedly sending another shock wave across the Pacific and directly into U.S. boardrooms (Click Here For Article). For the second time in less than two months, a major event that has implications for the offshore outsourcing industry has made international headlines.
While no one can exactly predict what affect this will have on the Indian offshore industry, one can probably surmise with some certainty that U.S. executives will begin to take a hard look at their own offshore vendors and strategy. Just three months ago, Satyam received the Golden Peacock award, given for excellence in corporate governance. Makes you wonder what changed so dramatically in such a short period of time.
There’s little doubt that this will shine a bright light on other major offshore vendors regardless of the country of origin, and given the rising unemployment in the United States, the timing couldn’t be worse for these companies.
That being said, the U.S. worker may have just caught a huge break.
What We See In Our Crystal Ball
As unemployment rises, offshore outsourcing will draw the ire of many in the U.S. Should the deflationary trend continue for the foreseeable future, many skilled but unemployed workers will be willing to work for considerable less then what they previously earning. Furthermore, companies located in expensive metropolitan areas will consider utilizing remote workers to fill many of their previously outsourced positions. This will allow firms to enjoy the benefits of lower cost jurisdictions across the U.S. at prices competitive to what they used to pay offshore vendors. The employment costs will be offset even more by the tax credits the hiring firm will enjoy (for hiring U.S. workers) courtesy of the Obama administration. The early adapters of this strategy will have the added advantage of a major PR coup. Soon, it may seem like a contest to see who can bring the most jobs back home.
The Homeland Onshore Model Has Already Proven The Point
Our “Homeland Onshore Model” has demonstrated that domestic remote sourcing can work, saving our customers up to 60% over fully burdened FTE costs. The remote model has the extra advantage of being very “Green”, and will do wonders for the life/work balance.
Do You Have A Contingency Plan?
The Homeland Onshore Model is an excellent alternative to Offshore Outsourcing. In addition, it can be strong part of any contingency plan that calls for repatriating jobs in a hurry.
For more information on the “Homeland Onshore Model” and how it can work for you, please visit www.ITOnshore.com.
