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markets and responsible for localisation of the products for the emerging
economies and the other markets in Asia and Africa.
Work in the non-core processes or domains will continue to be to offshored to
outsource offshore partners but more tightly managed through the involvement
of GICs in the local geography leading to smarter offshoring.
Offshoring strategy is starting to change and in next few years I foresee that most of
the multinational corporations will have an offshore GIC, which will form the core of
their offshore strategy. There will be increased value through offshoring through
better risk management, additional revenue generation through localisation and
increased innovation through GIC initiative.
NASSCOM has already realised this and has set up a GIC industry forum to support
global corporations to set up and grow their Global In-House Centres
(GICS)(http://www.nasscom.in/global-in-house-centres). There are already more
than 760 GICs operating out of India, across multiple locations accounting for USD
13.9 billion of export revenues, almost 21 per cent of the industry export revenues.
The numbers, size and more importantly the role of these GICs will grow significantly
as Offshore 3.0 happens.
To summarise:
Offshoring 1.0 = was about doing things at lower cost. Usually by suppliers
Offshoring 2.0 = is doing things right. Often by partners and suppliers
Offshoring 3.0 = will be about doing right things. Often by ourselves and
partners/suppliers managed locally
More insights on offshoring & outsourcing are available on the Religent blog