A journey from outsourcing 1.0 to 2.0: Evolution of outsourcing 2.0

There’s been a lot of noise and both affirmative and downbeat press on outsourcing over the last few years. You listen to a lot about “lost” jobs and big companies altering the way they carry out things. But the questions are, what is outsourcing, and how can it help you make more money, and why you should outsource?

In its simplest perspective outsourcing is just paying someone else (a third party) to do something that either you, or a member of staff or yours, could do, but is better done by someone else. Such as ceo-world.com

When you go to the doctor, you’re not “outsourcing” your work because you couldn’t do it yourself – even if you happen to be a doctor too. On the other hand, if you hire a company to clean your office or set up computer networking, that really is a form of outsourcing – because it is something you could do, or hire people directly to do, but that it makes more sense, and most likely costs less money, to have someone do who specializes in it.

Hiring a full-time network administrator is not outsourcing, whereas hiring a once per week software or hardware administration service is. While outsourcing is not new either in personnel lives or business practice, it has gotten a lot of press attention for the reason that it is happening with record speed and in ways that

never happened before. If you call the customer service lines for thousands of big American or British firms, you will now be speaking to someone in India, not Indiana.

Web 2.0 is the next generation transformation of the World Wide Web, It is neither a new technology nor a modus operandi; but it is a new way of thinking. Web 2.0 are a set of ideology and practices that when applied would bring in the change. This idea is more an ‘evolution’ and has ‘revolutionized’ the world of web. The web is now being viewed more as a participative medium with superior alliance among Internet user’s content providers, and enterprises.

We’re not saying this is good or bad, but it is new, and it is increasingly common. But “outsourcing” goes back a long time, and one of the original outsourcers probably cut your last paycheck.

The Key elements for outsourcing 1.0 to 2.0:

Before discussing the key elements for outsourcing change from outsourcing 1.0 to 2.0. let’s understand the difference between them first.

A major reason behind sensation factor for ‘outsourcing 1.0′ was excellence in taking on arranged tasks, creating crucial contracts and delivering, expected results to customers. One of the main objectives of outsourcing 1.0 is to articulate or segregate an explicit business task behind an interface (i.e. hr requirements, accounting solutions, payroll processing, gaming system, etc.) where each partner has a business model that is their own concern.

Where as, ‘Outsourcing 2.0’ is more mutual relationship, one that often requires taking the initiative (at higher degree), delivering astonishing, non-repeatable, fickle results.

Outsourcing 1.0 was all about negotiating intricate, multi-party agreements which were very time consuming. For outsourcing 2.0, it is truly important for both parties to have business models that are vitally aligned, i.e. working with a software design partner or software application manager.

Outsourcing 1.0, we’ve seen that location doesn’t matter much, most important was talents and people are (essentially) freely exchangeable or replaceable, in whole or in part, for another of like nature or kind. This is in fact not true in the upturned world of outsourcing 2.0. Because to achieve the objectives of 2.0 (business model), you need to take benefit of the potency, and accommodate the weak spots of unambiguous geographies, countries and marketplace. 3C (Customers, Competition and Compliance) innovation imperatives

Competencies- a lot of software is either free or else copious, so you don’t need to ‘buy’ it, in fact many software you cannot buy it. However, you require simple certification; through participation and good faith efforts to enrich the interface. Other difference is Changes in “What”, “How”, and “Who” in outsourcing 1.0. Here it is more focused and fickle. As there is no infrastructure and logistical barriers so there are much lower technical and physical barrier. Such as ceo-world.com

Lower basic costs – as a result of economy of scale or actual lower rates can be bigger now. Lower investment costs – you can rent rather than build infrastructure and systems as most of them are free so it will go lower. Same as with investment costs. Increasing effectiveness by focusing on what you want– like the big picture of the business or its model. Here companies should have more attention and expenditure. In other way you can say tangible expense will be lower where as intangible will see higher increase.