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Jay Kinker
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Jay Kinker - Entrepreneur, Strategist, Technologist

Today, outsourcing is not a choice but NEED. In today’s time, you cannot ignore technology irrespective of your business domain. If you are looking for a decent sized technology development or support (especially in developed economies): you will have to look at cost effectiveness for doing technology development. You cannot just do it all in-house (in developed economies) for the level of cost that is required and the level of professional required to do the job.

I run a software development house from Pune, India and often come across following questions. Here are my answers to them:

How cost effective is technology outsourcing?

- So often I see outsourcing being related primarily to cost and just cost! I see this as a wrong approach. Yes, cost is one of primary drivers but not the only one. So, instead of answering this question, I suggest them to aim at forming a “Technology and R&D Center” instead of a “Cost Center”. Philosophy is very simple: you can always get another vendor who could provide same service at lower cost! Secondly, in the ever demanding and competitive market you cannot run a sustainable and successful business with substandard products/services.

What takes to start my own technology center in India?

- Beyond work and money, you need someone who can run the show in India. Setting up an enterprise in India, especially technology house is easy but getting right heads and right position holds the key. I have seen multiple instances where organization closed because of wrong business heads, teams failed to deliver proper outputs because of wrong technical leads and managers. Right processes, culture, vision starts from top. Secondly, you cannot just outsource anything and everything and expect miracle to happen. In most cases you need correct resources onshore/onsite.

Conclusion: its not just money power but people who run the show!

How safe and reliable is it to do outsourcing? What to outsource and what not?

- First of all, you are not inventing outsourcing today. It’s a proven and reliable way of doing business for the smallest to the biggest possible business houses. Answer to above question can be included here – having right set of people at right position holds the key to reliability. Initially, only disconnected and low profile work use to get outsourced. Time has changed and so has the trend. Today, even Microsoft does core development and R&D from its India office. 

What is the best location for doing outsourcing?

- Of course India! I have seen people debating on this and everyone is entitled to have an opinion. Fact that almost all large technology companies worldwide have a development and R&D center in India. Frankly, I see many global enterprises shutting down if they stop their operations from India. Outsourcing is no more a choice but a NEED. Its not only the low profile work that is being outsourced today but the best and most technical work that you could possibly do in any business vertical.

Posted on Sunday, June 27, 2010 4:38 PM Whatever... , Outsourcing , Management | Back to top


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