The next of our five-part series explores new options for global delivery and cost arbitrage that originate from our own backyard in the United States.
To dispel the myth of Bigger is Better, focus on the industry’s current demand for more purposeful, right-size managed IT services in partnership with focused specialty service providers, which will give you cost effective agility in the marketplace. Let’s move ahead to another misconception about how to assess, engage and leverage Managed Service Providers to suit your needs.
MYTH #2: DOMESTIC CANNOT BE GLOBAL
Interestingly, while today’s Managed IT Services certainly include 24x7xAlways systems and connectivity with enabled mobility in most operations, there still seems to be a legacy belief that to have true worldwide capability, managed services need to emanate from complex, multi-point production sites around the globe, with a line of demarcation between U.S./domestic-based (on shore) and international-based services. Often this belief comes with other preconceived notions like:
While some requirements will certainly mandate the need for local international presence and/or high-touch labor needs, the vast majority of modern, right-size Managed IT Services can be successfully produced, operationalized and optimized, from a domestic hub designed for true global delivery. For today’s managed service that can be remotely delivered -really the vast majority of managed services these days- there is no reason in the world why you cannot have a 24x7xAlways, multi-lingual, high-quality, cost effective, client-intimate service that meets your needs emanating from the United States and delivered around the globe.
What it Takes to Build an Onshore Global Delivery Center
In terms of capacity, the United States is the largest Information and Communications Technology (ICT) market in the world. In addition to multi-lingual capability, the native tongue is English, still the most predominant business language on the planet and the U.S. Multi-National “company philosophy”, if you will, encourages the kind of cultural alignment with international buyers that breeds successful partnerships.
A global requirement must be delivered from multiple sites in multiple countries.
A global requirement can be delivered exceptionally from one (or multiple) United States-based hub(s).
To dispel this myth, what if we perfect a new delivery model that fleshes out the idea of tools, labor, multi-lingual requirements and facilities for Managed IT Services based in the United States? What if this new delivery model leverages certain geographic areas of the country where the total cost of doing business is lower, yet the quality of service matches or often exceeds that of offshore delivery models? What if we deliver services originating from the United States at a very high level of quality, combined with a total cost of ownership that's ultra-competitive?
This is the idea behind heartland labor arbitrage, which is a delivery model currently being used in the United States to deliver global service to anywhere in the world, including Europe, Asia-Pacific, the Middle East, Africa and South America. Services that originate from the U.S., are available 24x7xAlways, and are proving to be quite cost-effective against those business models that are dependent upon an offshore delivery model.
Next time, we’ll explore Myth #3: Offshore is Always Less Expensive Versus Domestic