Was it that long ago that everyone rushed after the promise of 80 percent savings by outsourcing work to vendors in India only to come away disappointed? Do we not remember how those pesky cultural, process, and people issues got in the way? Sure, not everyone high-tailed it out of India (although some did). But for those who stayed, it took time, effort, and money to try to make it work reasonably well. And, of course, there weren't any 80 percent cost savings. Hell, some people are still having trouble with their work in India.
Doesn't it stand to reason that all those issues only get multiplied as the outsourcers themselves expand globally? If it's difficult to recruit and retain people locally, isn't it exponentially harder to do halfway around the world? Mergers and acquisitions are tricky to integrate in similar geographies. I mean, Nextel was based in Reston, Va., and Sprint was based in Overland Park, Kan. and even they couldn't make it work. Do you want to outsource to a vendor that just set up shop in whatever region it is you're considering? Or one that just got acquired by another company in another timezone? Or one that's been operating there forever, but doesn't have as good a reputation as the other two?
Let's think this through. I'm considering re-locating some work closer to my U.S. headquarters. How about Mexico? Who do I go to? I've been working with Genpact in India. They've set up shop in Juarez and they'd love an inaugural deal with a marquee customer like me. But they're new to Mexico. Are they getting the best people? Do they know how to fully take advantage of the location yet? Is Genpact Mexico the same as Genpact India? Hmmm. Maybe I should consider local Mexican company. How about Softtek? They're the largest private IT services company in Latin America and headquartered right there in Monterrey. What's that? Their management is busy with the daunting task of integrating I.T. United, the Chinese software development company they acquired? O-kaay. Maybe I should call up IBM. They're what?
Now, I'm not picking on Genpact. Or Softtek. Or IBM. Everyone is doing it. (Or almost everyone.)
It's not a small world after all. In fact, the more connections we make, the more big and messy and complex it is. Eventually, perhaps, the world will seem flatter. Maybe you'll be able to send work wherever it's convenient or cost-effective or compatible for you without too much thought. But not just yet.
I'm not advocating sticking your head in the sand or building walls or whatever your favorite metaphor is for isolationism. I'm just saying, let's not be coy about what it all really means right now.
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