Outsourcing to countries like India, South Africa, and the Philippines was a solution to cut costs mainly on labor. Everyone knows that. Since it has been so successful and large companies have decided it was worth investing to put their own centers instead of outsourcing, labor cost has increased.
This could mean a good thing for those working in these centers, but is this really going long term? Maybe not.
Right now, I’m happy that I am able to compete with my other counterparts and give them the best I’ve got. I’ve written a post about Dell doing such a thing and it is natural that people go to where the money is. This not only increases their market value, it also makes it so hard for outsourced centers to compete.
Let’s talk about the long term here. In a matter of years, we will reach a point where salaries and the compensation package (including the extra incentives and bonuses) will be too high, that it won’t make sense to even go off shore. With VOIP and business models such as home based jobs being accepted, this also means it’s better to stay at home.
This is something that management should be thinking about. As I’ve said, it is good for people like me who will be on the advantage, but I want to keep my job as long as possible. Competition is getting tougher and buying people is another thing.
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