What do SMEs think about outsourcing to India?
Our recent trip to Germany for CeBIT in Hannover gave us insight into the mindset of IT entrepreneurs and decision makers towards outsourcing to India. We met CEO’s and CIO’s of various Small and Medium Enterprises (SME) from all around the world – USA, Europe, South America.
We noticed that some of the SMEs had a mental reservation about outsourcing and India. When questioned about the source of such reservations, it was usually based on feedback from acquaintances in their business and social network. However, they quickly acknowledge that India is a great destination to find the right talent and engage with experienced partners for their growth, but were concerned about getting it right.
During our conversations the following sentiment was voiced consistently by the SMEs, irrespective of their business, industry or location.
- As a result of the recession, SMEs will expect to derive even more value from outsourcing partners – value that goes beyond cost reduction and increased productivity
- SMEs think that it is critical to view outsourcing as long-term strategic relationship where factors like trust, credibility, flexibility and efficiency become more critical
In the old (conventional) model of outsourcing, the most important objective was to reduce costs and increase production capabilities, but that model (and mindset) is already changing rapidly. SMEs are beginning to think long term, invest time to indentify right partners, and ensure the relationship is based on flexibility and trust.
SMEs all over the world need dedicated outsourcing partners who can help them with skilled professionals, quality project management, and timely deliverables. Suyati’s DGT can help.