Monday, September 6th, 2010

Second-generation Hispanics are fast becoming the driver of the group’s growth, with 88 percent of Hispanic children born in America, versus 61 percent of adults: Exploding US Hispanic Population Attracts Attention of Corporate America  |  LATAM offers customers a savings of about 40% (over prevailing costs in the home country), versus a savings of about 60% generally in India: Everest Analyst Says: Pursue New Lower Costs Labor Pools Now |  In Jamaica, Currently 8.3% (103,000) of the workforce is university educated and 30.5% are high school graduates : Jamaica: The Full Picture  |  Sitel employs over 60,000 workers in over 140 facilities in 27 countries around the world: Sitel’s Investment in Nicaragua "Like Striking Gold"  |  About 75% of the nearly 2,000 person staff working at Sitel’s two in-country facilities have either lived in the United States or were educated there: Sitel’s Investment in Nicaragua "Like Striking Gold"

By Kirk Laughlin, NSAM Editorial Director

I always enjoy reading the various recommendations that come out from industry experts Compass Conceptabout best practices in outsourcing. Some of the advice is intended to be truly independent and unbiased and that’s the kind of material we’re often looking for at Nearshore Americas.

Other times we see “experts” arguing a specific point, but in reality they have a hidden agenda and the tone of their advice favors that agenda.

Don’t get me wrong – it’s important not to completely dismiss the various opinions and guidance available out there, even if it is from a party known to be promoting their own brand, product or consultancy. Service providers in particular can be exceptionally helpful in shedding light on specific outsourcing trends as well as country or regional-oriented data. In fact, providers should be prepared to give you a briefing on their own service roadmap and whether they are intending to stick to core services (like call centers) or branch out into other service areas like KPO or IT services. Listen closely to see if this “vision” is echoed in conversations with other members of the provider’s executive leadership.

One of the most fundamental challenges facing buyers of outsourced services is choosing the right partner.  Once the partnership begins, tremendous amounts of focus, energy and oftentimes funding is devoted to the relationship from both parties.  The partnership can quickly come crashing down however if there are assumed payoffs that never materialize.

Blogger Samuel Prasad has come up recently with a list of ten recommendations on choosing the right outsourcing partner. Among the valuable points he makes is that it’s a big mistake to hire a partner solely based on economics. As far as hiring a partner based in a specific country he says:

The location of an offshore outsourcer is important because differences in language and culture in addition to the geopolitical climate can cause major problems. A country with a stable government that respects IP rights with good universities/colleges… is usually a good bet

There is nothing better of course that to visit the country and see first hand.  It  may sound pretty unscientific, but some of the best advice-givers in the outsourcing industry strongly advocate talking to business people, investors and even university officials about issues like the rule of law, trade and legal transparency and governmental support for exported professional services.

If you are just beginning your journey in outsourcing, it won’t be hard to find a large number of advice-givers looking to get you to listen to them.

But in the same spirit of good journalism practices, it boils down to the old adage: Trust, but Verify.

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