An Approach Towards Regionalization in Outsourcing
Globalization is an oft spoken word in the business ecosystem. In the context of business, it means to really expand ones business to different geographical territories and establish a business relationship with enterprises belonging to a particular region. The whole approach is towards expanding accessibility to resources and connectivity among different economies. In terms of business, the entire idea was to leverage the potential of a particular country to one’s benefit. For example- countries like India, Philippines boasts of trained and educated workforce. This potential was leveraged by enterprises running in the west. Generally, if an enterprise outsources certain business processes to a country, it either trains its resources by operating through its captives or hires resources that are trained in that particular process. Like every business interaction, outsourcing is also a process of dissolve not only geographical barriers but also social and cultural. That is specifically the reason why the term ‘globalization’ is used in the broader sense of the term.
In last few years, another interesting concept is coming up in a big way and that is accomplishing the ‘global leadership through regionalization’. The regionalization approach has evolved from this entire outlook for strengthening the national economies to enable them to compete at the global level. Regionalism was earlier marked by the evolution of trade blocs that stemmed as a reaction against the absence of a universal ideology. With the changing times, regionalization has undertaken a new definition altogether, wherein it is more of a component of globalization rather than functioning as a challenge. As result, the entire focus is towards the creation of strong nation states that collaborate and innovate to give rise to efficient business models. The different regions taken together forms the global community, therefore without focusing on the key potential of each of these regions, an enterprise cannot establish a global footprint. Regionalization serves to create innovative opportunities at the regional level and this has the potential of getting established as a possible service offering. Another interesting business approach would be towards creating service lines according to the different regional demands. Though, it would bring in a lot of other challenges but going forward this thought would gradually find its ways in different industry verticals. Outsourcing, too, would not remain immune to this new thought process and countries outsourcing to India would think of either leveraging the potential of the different regions within the country or export its custom tailored services for different regions.