When will the monies that are
flowing out of the West return to the West, or will they? To a very limited
extent the East has been slow to invest outside of their immediate areas. In
turn they are opting to self invest in infrastructure and general growth
development. While this is great for the region, it is of little value to the
Western consumer of their services - and certainly that of global economic
recovery. One might consider this a form of social responsibility. Don't all of
us have to return a little to those that have made it possible for us to
flourish.
I'm not sure if I fully
understand whether this behavior is a factor of culture (saving for a rainy day)
or whether it's a matter of understanding the holistic importance of global
commerce. Without a stable consumer base businesses are at risk of failure.
This is due largely to the lack of a stable revenue stream. So while inward
thinking might seem safe, it can be by its very nature the poison pill for
collapse.
A big obstacle is trust. While wanting to be
partners we have reservations caused by a lack of familiarity. From a global
business perspective this means that many people must be a part of the global
business solution. Unfortunately the C-level inner offices of many offshore
companies are occupied by nationals. I believe this is done largely to keep
operations as efficient as possible without excess efforts spent on cultural
clarification. It is acknowledged that this can contribute to narrow thinking
that creates a gap in understanding consumer needs.
Investing in the West is an important element in
the growth and development of the outsourcing sector. It is invaluable to the
speed and duration of global economic recovery. In many ways it's a role
reversal in the sense that offshore suppliers now have to evaluate reinvestment
opportunities - not through local norms but through the role as a surrogate
Western investor. Simple things like financial records, regulatory reporting,
staff profiles and market prominence take on a different meaning in a rapidly
changing democratic setting. The rate of change alone is challenging even for
those from the West. Beyond even the most fundamental of evaluations a main
reason for investing in your consumer is to control the supply chain in order to
provide revenue stability.
As I think about these issues I am drawn to the
long ago acquisition of EDS by General Motors. One cannot simply buy or invest
and leave everything alone. We are drawn to laying our own brand on the
acquisition. Nothing is different whether East invests in West, West invests in
the East or EDS is acquired by GM… we simply can't leave our investment
alone. We have to economize it, reshape it, and redirect it. Successful
acquisitions will have a slow but steady acceleration, characterized by a global
team willing to craft a map but not be bound to it. Those who take charge will
endure significant challenges that often result in acquisition disposal and loss
of market confidence.
So when will the tides turn? Will change occur
at the top, middle or bottom tiers? Is it apt to be BPO organizations or those
that combine a variety of sourcing disciplines? No one really knows, but we
hope that those with funds start to realize that they play a pivotal role in
global economic recovery!
Until next time feel free to contribute your thoughts or send
an email to me at jdurant@Int-IOM.org.
