| Outsourcing seems to be the new-new thing and | | | | from an already depleted workforce here in the |
| approximately 50% of our major corporations are | | | | States): how do American managers effectively |
| doing it. What are the costs? The benefits? And what | | | | communicate with the foreign providers who are |
| skills need to be managed in order to make it work | | | | answering our phones and doing our programming? |
| optimally?Let's get a clear understanding of what we | | | | How do we make sure that the way we treat |
| mean by outsourcing: it's the shifting of easily codified | | | | customers here in the States is the same way we |
| jobs - such as help desk support, call centers, system | | | | treat customers in Malaysia, or wherever?What is our |
| maintenance, and programming jobs - to countries that | | | | brand? And how do we manage the brand over time |
| can manage them more cheaply.While this function is | | | | and through space?We need to create a new way to |
| allegedly freeing up our people from some of the | | | | transfer skills and beliefs across continents in order to |
| mundane tasks of our workplaces, it's bringing with it | | | | ensure that our brand is represented effectively in |
| an entirely new set of problems: how do we manage | | | | every client interaction. Every client interaction.BELIEF |
| people across continents; how do we know our brand | | | | AND SKILLS TRANSFER |
| is being maintained when we have no direct control | | | | For some reason, some companies still think their |
| over managing foreign employees; how do we | | | | 'brand' is a visual logo rather than a complete |
| restructure our workspaces once our lower level jobs | | | | relationship and story. Our brand is the story we tell |
| are farmed out.WHAT ARE THE COSTS OF | | | | about ourselves to our customers (defined as |
| OUTSOURCING?John Ribeiro in a recent article in | | | | employees, vendors, and purchasers of our products) |
| Darwin, states: "According to the National Association | | | | and the relationship we have with all of them. Think |
| of Software and Service Companies (NASSCOM)... | | | | about Harley Davidson: somehow they manage to get |
| outsourcing to India has saved the U.S. banking industry | | | | people tattooing the brand on their bodies! Think about |
| $6 billion to $8 billion."Indeed, I've heard it said that the | | | | Apple: they've taken their IPOD and created fabulous |
| only reason American companies are outsourcing | | | | ads that make us get more atuned (ahem... sorry) to |
| work is to save money. Let's take a brief look at the | | | | what their brand is: cutting edge, different, funky, |
| pros and cons of the financials for a moment:Cost | | | | creative, and funfunfun. Not to mention that the ad |
| savings: mainly in the area of salaries and | | | | itself makes me want to dance - and then dance to a |
| management time.Additional expenditures: vendor | | | | store and buy a new MAC. (Note: their website does |
| selection (legal, travel, time), exchange rates, training, | | | | NOT maintain their brand, however.)OK. So we've got |
| time lag issues, client retention, management or techie | | | | this story and this customer experience in our |
| retraining.One of the costs I've heard discussed is the | | | | States-side company, but we don't have the way |
| human cost: that company employees get resentful | | | | forward to ensure we duplicate this with our |
| when their job descriptions get changed, and have a | | | | Outsourced employees.I recently met with a new client |
| period of time where they suffer resistance. | | | | team as they were incorporating an Indian vendor's |
| Eventually, they do come 'round to recognizing that | | | | offering into their roles. They had spent 4 days |
| they are being given higher-value tasks in place of their | | | | together, aligning their outcomes, working relationships, |
| old work - assuming that they even desire new tasks | | | | communications, and jobs. Their mission statement |
| and don't end up quitting. There don't seem to be any | | | | was the same, their company vision. They had me in |
| figures available on this cost.But there is an additional, | | | | to do a final check.I began by asking the new vendor |
| unspoken cost. Our relationship with the end | | | | what his job was: to hire the best techies around. |
| customer.We've all dealt with service people from India | | | | Good. What else? Well, what else is there?"How do |
| when we call to ask a question of a vendor. First there | | | | you plan on managing Company X's brand?" |
| is the long, long delay before the phone gets | | | | "What do you mean? All I have to do is hire the right |
| answered. And then there is the accent.Are the | | | | people. After that, they're on their own." |
| service reps and techies smart? Yes, they are. Are | | | | "Really! And how are they going to be managed |
| they smarter than Americans? It depends on the | | | | daily? How will you ensure that the service they offer |
| person. But they are always cheaper. Do they do the | | | | in the States will be the same service you offer from |
| job? Usually. Depends on how well they've been | | | | here?" |
| trained and managed. They certainly know what to | | | | "John (the tech manager) will manage it." |
| say, how to say it, how to answer questions.But what | | | | "John, do you recognize that as one of your new |
| about brand management? Do they give the identical | | | | jobs?" |
| service that the company espouses in-house (or, um, | | | | "Um, I guess I hadn't. |
| in-States)? The answer here is, generally, 'no' and | | | | "How will the customer's specs be delivered? Will the |
| deserves further discussion.HOW DO OUTSOURCED | | | | Indian tech folks speak with the customers directly?" |
| REPS DELIVER BRAND AMBASSADORSHIP | | | | "No." |
| Because lower-level jobs are being filled by people | | | | "So, how will the information be transferred across |
| who speak English as a second language, AND who | | | | the sea?"You get the point here. They hadn't thought |
| have not had the appreciation of 'service' instilled in | | | | through all of the daily dynamics. Within an hour, no one |
| them since birth, these foreign reps will, at best, do a | | | | knew their jobs or their roles, people were switching |
| technically good job. Say what you want: we | | | | job descriptions on one hand, and recognizing new, |
| Americans are raised understanding that we must | | | | unspoken, aspects of their jobs on the other.This is a |
| serve customers and must be served by vendors. | | | | small company. It's highly likely that larger, more |
| People in India are raised to believe they are a | | | | experienced companies, know how to ask all of the |
| replenishable commodity.Unless trained to do so, the | | | | right questions to get it right from the start. But how |
| foreign workers will NOT carry the company standard, | | | | many don't?Have your internal and outsourced teams |
| and in a problem situation, may run. I've had several | | | | design communication systems that will make it viable |
| people hang up on me when it became clear that my | | | | to ensure all aspects of your brand get carried through |
| problem was more complex than they could | | | | from one country to the other. Make sure it's seamless |
| manage.Do I shrug, and say, "Oh well. He was Indian. | | | | - that all customers get treated exactly the same, |
| He didn't know any better." Or do I say, "Why isn't | | | | regardless of where your support staff sit. Make sure |
| ABC Company giving me the service they promise on | | | | that the folks who are giving work up to the |
| their ads?"Every single person who works in a | | | | outsourced people will take responsibility for it, and be |
| company - Every. Single. Person. - is a company's | | | | happy with the new work they'll be undertaking.It's not |
| Brand Ambassador. That means, those young Indian | | | | ok just to manage the vendor by choosing wisely. It's |
| people living in Bangalore (I've been there. Outside of | | | | imperative you have a hands-on relationship with each |
| the pollution in the city, it's lovely. Smells like | | | | employee, regardless of where they sit. Remember: |
| sandalwood throughout the villages.) or wherever, must | | | | they are all your customers.Sharon Drew Morgen is |
| act exactly like the people you have in the States. If | | | | the author of NYTimes Best Seller Selling with Integrity. |
| you don't, you are not managing your brand | | | | She speaks, teaches and consults globally around her |
| appropriately.And therein lies the largest problem | | | | visionary sales method, Buying Facilitation. |
| created by Outsourcing (other than taking jobs away | | | | 512-457-0246 Morgen Facilitations, Inc. |