Outsourcing is not necessarily a new way of doing trade. However, the recent globalization enabled U.S. companies to seek out new alternatives to fulfillment and as a result we have seen a recent redistribution of power.
In the beginning with what has been called “Outsourcing 1.0” large companies outsourced various tasks to countries where the cost of labor created efficiencies, such as India and China in the IT services space. The result was that companies moved business-process jobs, such as customer-service and human resource processing offshore.
Later, in the early 2000s, as the cost of labor in India and China began to rise, new territories were sought out. In what has been defined as IT “Outsourcing 2.0”, a new service set was established and referred to as Business Process Outsourcing (BPO). Not only large companies, but also SME’s were able to afford an outsourced model. New countries, such as Canada, Mexico, and others in Latin America and Eastern Europe appeared in the IT Services field. The selection became more difficult and the cost was not the main concern, IT companies began to analyze supply chains and outsourcing opportunities in more detail.
There are 3 key forces driving the shift to Outsourcing 2.0 :
1. Universal pain in all dimensions of outsourcing. Access to best practices and processes, peer networking and professional development. These problems of the marketplace have affected both large and small players alike.
2. Changes in who outsourcing and how it is done. Buyers need access to more specialized services, best practices information, case studies and tools to guide them to successful outsourcing contracts and relationships. Objective opinions are needed.
3. The evolution of Web 2.0 and the growing impact it´s having on communication, collaboration and knowledge sharing.
Thus, with its proximity to the USA and with potentially lower cost and time zone problems, Mexico can compete successfully against a country such as India, the market leader.
In the last months a new direction of outsourcing is accessing to the Information Technology Industry, Outsourcing 3.0. This is about Knowledge Process Outsourcing. This new era wants to make outsourcing sustainable. Global corporate bigwigs are beginning to eat entire departments of Companies, with the purpose of cover as much fields and presence as possible. Anyway, Outsourcing 2.0 stills predominating.
In the beginning with what has been called “Outsourcing 1.0” large companies outsourced various tasks to countries where the cost of labor created efficiencies, such as India and China in the IT services space. The result was that companies moved business-process jobs, such as customer-service and human resource processing offshore.
Later, in the early 2000s, as the cost of labor in India and China began to rise, new territories were sought out. In what has been defined as IT “Outsourcing 2.0”, a new service set was established and referred to as Business Process Outsourcing (BPO). Not only large companies, but also SME’s were able to afford an outsourced model. New countries, such as Canada, Mexico, and others in Latin America and Eastern Europe appeared in the IT Services field. The selection became more difficult and the cost was not the main concern, IT companies began to analyze supply chains and outsourcing opportunities in more detail.
There are 3 key forces driving the shift to Outsourcing 2.0 :
1. Universal pain in all dimensions of outsourcing. Access to best practices and processes, peer networking and professional development. These problems of the marketplace have affected both large and small players alike.
2. Changes in who outsourcing and how it is done. Buyers need access to more specialized services, best practices information, case studies and tools to guide them to successful outsourcing contracts and relationships. Objective opinions are needed.
3. The evolution of Web 2.0 and the growing impact it´s having on communication, collaboration and knowledge sharing.
Thus, with its proximity to the USA and with potentially lower cost and time zone problems, Mexico can compete successfully against a country such as India, the market leader.
In the last months a new direction of outsourcing is accessing to the Information Technology Industry, Outsourcing 3.0. This is about Knowledge Process Outsourcing. This new era wants to make outsourcing sustainable. Global corporate bigwigs are beginning to eat entire departments of Companies, with the purpose of cover as much fields and presence as possible. Anyway, Outsourcing 2.0 stills predominating.
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