Are China and Russia racing to the world of outsourcing?
It is only human nature to look for the next big thing or the latest craze that is going to sweep the world. This is as true in the business world as it is for consumers so when something major happens, some will look on in admiration whereas others will attempt to muscle in on the act. One of the biggest successes in recent years in the business world has revolved around outsourcing and the success and benefits it has brought to India. The world of call centers has changed dramatically and it seems that India is the new home for outsourcing but that may not always be the case. The early mover benefits will fade away and other nations or regions will be able to gain knowledge faster and will eventually be in a position to challenge and potentially usurp India for outsourcing.
There are many nations that bare casting envious glances at India’s outsourcing riches at the moment but two nations who have genuine ambitions to become the top dog in the industry are Russia and China. In their time, both of these nations have been massive super powers and although there are cultural differences between the two, they may not be as far apart as some would make them out to be.
The past few years has seen a number of observers, columnists and authors pontificating about how China is primed to be the next super-power and the dominant force of this century and on paper, it certainly looks to be the case. Given the population size and the fiercely loyal following to the ruling powers, it is likely that China will be able to galvanize support and enthusiasm in a manner that no other country in the world could. Much like the former Soviet Block during the Cold War but there is a much stronger chance that the Chinese will hold together and take their place at the forefront of world politics.
This has led to Russia closely examining the Chinese model, not politically but with regards to how they are manoeuvring into position for outsourcing and tugging onto the coat-tails may see Russia rise up the list of nations who provide a credible level of outsourcing. The importance of the major or capital city is not one that is crucial when bringing outsourcing to the country. China has recognized this and many of their outlying districts or cities has experienced a boost due to an influx of outsourcing. This additional money to the local economy and the knock-on effect of local employment further pushing the economic cycle in the right direction has been noticed by many nations.
Previously, there would be a drive to have all of the important and influential posts in the major cities but the benefits from rotating the benefits can bring greater joy to a developing or progressing nation. The localization of many posts can also allow specific training or skills to be given to an area, which will greatly improve that regions chance of obtaining certain jobs. Russia is not able to compete on low wages compared to some firms but having a highly skilled and relevant workforce is something that they can easily compete on and this is an area where progress is expected to be made by Russia in the next few years.
