Virtualization in Outsourcing
Michael Porter in 1985 very clearly explained value chain in terms of the enterprise architecture in his book, ‘Competitive Advantage: Creating and Sustaining Superior Performance’. According to this analysis, the business functions of an enterprise were bifurcated into primary operations and secondary support functions. In a business scenario where strategic alliances and collaboration define success, it is important for enterprises to leverage the expertise of third party to stay ahead in the market in terms of the timely delivery and quality of services. There is no point in trying to manage all the functions that call for different success parameters. To manage these secondary support functions, outsourcing has been widely accepted across the world particularly the enterprises in the west. Mostly business and knowledge-based processes have been widely outsourced to India. Outsourcing these support functions has enabled the enterprises to not only gain great focus on their core business functions but also with the crucial time to innovate.
One of the most important things is to remember that outsourcing is not only done for cost effectiveness but also for the very purpose of leveraging the expertise of others players in the market to improve the quality of the products & services. The whole idea is to convert the investment into a meaningful mechanism for generating a greater ROI. Outsourcing as a concept itself seeks to dissolve all the barriers of time, physical infrastructure and space in business. These days a huge number of services providers have come up with abstract services that promise to take care of every aspect of the secondary support function right from infrastructure to the resources. This was more of a virtual mode where custom tailored services were delivered via internet. Virtualization has brought in a close convergence between business and information technology. For business process outsourcing, virtualization meant availability of technology solutions over internet that could be accessed irrespective of time and space. It meant storage and processing of data sans the physical data-centers and servers. This virtual mechanism of business has opened up a plethora of opportunities for agencies that claimed a superior understanding of the potential of virtualization. India, as an outsourcing destination, with its quality manpower immediately grasped the opportunity and turned on to create a bouquet of innovative services that promised to add greater value to the business. Increasingly, enterprises started to outsource to India the services that needed a specialized support and understanding.
With the passage of time, even virtualization underwent quite a makeover with enterprises demanding customized services. Therefore, it is not just infrastructure but also multiple other business processes that could be outsourced.