| During the past few years, we have heard a | | | | accounting jobs, and a separate deal with |
| lot of whining in the media about outsourcing | | | | Illinois-based Hewitt Associates to handle |
| and offshoring. Let's look for the | | | | administrative and HR programs. But, it is |
| opportunities in these irreversible trends | | | | not just about cost savings, it's about |
| (and ignore the whiners!).By fully leveraging | | | | growth! Wachovia plans to invest up to 40% of |
| offshore talent (a strategic view of global | | | | the $600 million to $1 billion in savings in |
| sourcing) we can improve productivity, | | | | core business growth. Wachovia's Director of |
| increase quality, and create American jobs. | | | | Corporate Development believes this is what |
| Yes, I said "create America jobs."An | | | | is necessary to become a "great |
| aggressive outsourcer in Pasadena, California | | | | customer-relationship company."Eli Lilly and |
| named IndyMac Bankcorp has risen from the | | | | other "big pharma" companies are facing |
| twenty-second largest U.S. mortgage issuer to | | | | unsustainable costs to develop new drugs. |
| the number-nine position in only three years. | | | | Lilly now does 20% of its chemistry work in |
| According to IndyMac's CEO, they are more | | | | China for one-quarter of the U.S. cost. Lilly |
| productive, more cost efficient, more | | | | plans to expand these efforts into Russia, |
| flexible, and provide better customer service | | | | China, India, and Brazil.Many new companies |
| than the competition because of IndyMac's | | | | are using outsourcing and offshoring from the |
| outsourcing and offshoring partners. India's | | | | start. California-based Crimson Consulting |
| Exlservice Holdings (with a staff of 5,000) | | | | Group (with only 14 full-time employees) is |
| handles over 30 of IndyMac's back-office | | | | able to compete with the world's largest |
| processes, including bill collection and the | | | | consulting firms (including McKensey and |
| "welcome calls" that assist American | | | | Bain) by offshoring research. Crimson uses |
| customers. IndyMac is also using New | | | | India-based Evalueserve, as well as |
| York-based Cognizant Technology Solutions | | | | independent experts from around the |
| Corporation to develop next-generation | | | | world.Wise leaders (and consultants) are now |
| software, which will increase productivity by | | | | asking for articulate outsourcing/offshoring |
| as much as 20% by 2008. All of this | | | | strategies. Are you familiar with the wide |
| outsourcing and offshoring has led to | | | | array of business services, software |
| explosive growth. IndyMac has doubled its | | | | development, and call center resources that |
| American workforce, in just four years, to | | | | are currently available?Dr. Mike Beitler is |
| almost 6,000 jobs.Charlotte-based Wachovia | | | | the author of "Strategic Organizational |
| Corporation has a $1.1 billion deal with | | | | Learning. |
| India's Genpact to handle finance and | | | | |