Outsourcing Relationship
The more that companies outsource, the more the outsourcing relationship is becoming a mainstay.
Outsourcing is not just defined as contracting out work to third parties; it also refers to transferring responsibilities and tasks to employees of a different company or country. This type of relationship has been around for quite some time now, with organizations moving on-site work back and forth from different locations. However, with the increase in technology creating new opportunities for global businesses, even better cooperation opportunities arise.
Some examples of this are shifting production centers around the world closer to where their end-users are based or placing an IT service management department offshore instead of in-house. What has become apparent is that not only can outsourcing provide companies with flexibility, productivity and competitive advantages, but it also can improve production and responsiveness by using a common language.
According to the International Institute of Business Analysis (IIBA)*, global business opportunities are expected to increase from $126 trillion in 2017 to $216 trillion by 2035 (in constant 2012 dollars). This shift will indeed play a major role in how companies operate. "Outsourcing may have a modest role in the future, but what's important is that they continue to apply new forms of technology." said Henning Schulzrinne, an associate professor of computer science at Columbia University and chief technical officer at LIRNEasia (a member of IIBA).
One way to promote a better collaboration between companies is for each party to be well equipped with information technology such that they can resolve any issues in the best way possible and efficiently. Not only can IT communications help organizations to work together more successfully, it also has the potential of saving costs and time. This is an area where many companies are focused their attention nowadays, looking for ways in which being more dynamic and collaborative will benefit them in the long run.
Companies such as IBM, Cisco and Symantec have constantly been introducing intensive technologies such as cloud computing, mobile development and social media that are still relatively new but will soon replace traditional methods of communication like phone calls.
"Over the next 10–20 years, we will see a shift from outsourcing to insourcing and a move away from hierarchical bureaucracy. This will be driven by companies' desire to find new ways of working with partners that increase flexibility and competitiveness." commented Schulzrinne.
*The IIBA is an international not-for-profit association that serves as the forum for information technology professionals involved in analysis practice and education. The IIBA educates and supports members in their profession and provides access to the best practices of the industry.
Other cases of companies working together from different locations include:
MFP touch screen based keyboard has been designed for use in factories where MFPs are used to print out documents using a six-color copier (or more) printing process and with a roll width of up to 60cm. The keyboard uses an eye-level AC touch screen (about 1 inch by 1 inch), which allows information to be entered via the touchscreen as well as using four additional buttons positioned at the top of the MFP's control panel. This feature provides a more secure way of entering information from the point of view of the operator, as they do not have to bend down to the touchscreen.
The keyboard also includes an XML based data collection software (also known as an XML keyboard) that allows a high degree of flexibility in production control and other operations. This functionality is obtained by using a web browser to access multiple copiers and MFPs installed in different locations. By using this technique, data can be shared and accessed between different machines connected together on a network from one location. The operator can change settings on all machines from one screen, which reduces operational time, which in turn results in increased productivity.
By using this technique, data can be shared and accessed between different machines connected together on a network from one location. The operator can change settings on all machines from one screen, which reduces operational time, which in turn results in increased productivity.
The "Nematico News" has reported on a case of outsourcing to another country that is having great success. According to the report, an employee at the Chicago Transit Authority (CTA) was upset that the CTA had outsourced its customer support operation to a call center located in India and wanted to take action. The employee filed a grievance with his union representative and also talked to his congressman.
The lawmaker, who is writing a bill to require the CTA to create its own call center in the United States, said he has been approached by numerous other employees who want action as well. According to the Congressman, one of his constituents stated that if they did not stand together and fight back against outsourcing, it would turn into a "Big Brother" situation.
The employee's union representative said: "This is more than just a service organization - this is an international organization that controls our lives." The CTA currently receives about one million calls daily and has nearly 4500 workers at its call center in India. More than 600 are supported by around 5000 volunteers from the community-at-large.
The future is not only about improving activities for employees related to outsourcing, but also the way in which their job responsibilities can improve. According to the IIBA, new technologies will dramatically change the way in which companies do business and will result in more opportunities for workers at all levels.
The first step in this transition is creating more flexible work schedules, allowing employees to work from home or from other locations in a similar manner to "telecommuting." The system will consist of data terminals that are connected through a secure network to a central location where information can be shared with other workers. With this type of partnership, every worker would have unlimited access to everything on the computer network.
A second benefit of this type of arrangement would be greater collaboration between the workers through improved communications. It would create a team effort and an increase in productivity. Employees could connect and share information with their coworkers by using a variety of communication methods including email, phone call or video conferencing.
This is just one example where the additional benefits of collaborative efforts are being noticed by companies and employees alike. The IIBA believes that this trend will continue as more technologies become more affordable and accessible for use by employees as well as costs decrease, although cheaper technology such as posting data on the web may not be replaced with something more advanced in the near future.
Conclusion
The increasing use of technology will continue to have a greater impact on the way in which companies function and those who work in them. Issues such as outsourcing, job security, cost-cutting and even the future of the workplace are all issues that will be affected by new technologies.
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About the Author
Michael Bell is a director at AccuPro Soft Systems Inc. (www.accuprosoft.com) This article originally appeared in Hothouse Network December 2004 issue (#56) and was reprinted with permission from AccuPro Soft Systems Inc..
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Outsourcing Relationship