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Outsourcing - Towards virtual world

The outsourcing/offshoring is an inevitable flattening of earth (oh, such a cliché!)

The telecommunication networks have become so powerful; it is immaterial if a person we are communicating with is in next room or 1000 miles apart. The communication has brought people together. And companies are an association of people coming together to achieve a certain commercial objective. With the death of distance, people from across the world can join the team and work together.

This comity of people, a century in making, is seeing its first light of impact in real world. The most visible aspect is offshoring of jobs to other nations. The involvement of each component of teams, who will be virtual and location would be irrelevant, would increase in future. The cursory changes or realigning of productivity, for the next step in productivity, is what we have seen now. The major changes and realignment is when the critical activities of company operations can be implemented without any relevance to locations. The Outsourcing or offshoring will continue to have significant impact on the world of future. The adverse impact, unfortunately, will be felt in developed countries which will utilize the services of lower cost locations. Opposite effect would be felt in the outsourced locations. BAH has given a smart roadmap on how the Outsourcing may pan out.

The true goal of Outsourcing is not to cut costs or push for higher relevance. It is the next phase of “death of distance” where the world will work virtually without any barriers of communication or work. These virtual teams will be organized in such a way as to create greater efficiencies and effectiveness using advantages, natural or man-made, that are intrinsic to location or culture.


The ultimate goal would be able to create a truly mobile professions, which are not time or location dependent. It is hard not to foresee an entire company built by teams and persons who have never met each other in physical world. We saw a glimpse of such activity with the dot.com era, and we are seeing realistic action with Outsourcing. Outsourcing, in the final analysis, will not be a flow from higher-cost nation to lower-cost nation but will be from inefficient centers to efficient centers, which simply, means at a point in future we cannot deny reverse-outsourcing (which is what the past world has known as ‘technology imports’)


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