Disney Was Right: It Is a Small World

Ann All

When it comes to global business, the world isn't just getting flatter, it's getting smaller too.


While India is still the favorite locale for outsourcing, it is by no means the only one. As outsourcing initiatives become more strategic, companies are trying to find locations with characteristics that closely match their business needs.


This can result in choices that seem somewhat unexpected. Insurers, for instance, are sending their back-office operations to Uruguay. While it can't match India for outsourcing depth, it apparently does have a strong financial industry sector -- and is thus better equipped to handle insurers' needs.


No one realizes this more than Indian outsourcing companies, which are acquiring outsourcers in Latin America, China and the Philippines, among other locales. They realize that, to maintain their industry leadership, they'll have to diversify.


Moral of the story: While reputation and track record are important qualities to look for in an outsourcing provider (or any business partner), they aren't the only ones. Also worth considering: infrastructure, regulatory environment, local culture and specialized skills.

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