Friday, February 18, 2005

Outsourcing is Insourcing of competence

A few days ago, I had the opportunity of attending a talk by management guru C. K. Prahlad, the propounder of the concept of "core competence". Amongst a variety of topics he had covered in his lecture, he talked of the recent evolution of the entrepreneurial culture in the country, the needs of grassroots innovation, and the tremendous opportunity to tap the market of the poor and building businesses for the masses, citing examples of success stories such as the IndiOne Hotels, a low-cost hotel conceptualized by the man himself.

Also, he made a very intriguing comment: "Outsourcing = Insourcing of competence". A very subtle remark but when we dwelve deeper, it has a whole lot of significance. The tremendous amount of success in Outsourcing business is lending confidence and experience, to the leaders of tomorrow, helping promote innovation and also the intricacies of managing global level opertaions.

Talking of the role Outsourcing can play in cultivating entrepreneurship, the MIT Technology Review has a very interesting article:
Big outsourcing providers like Infosys may not be fountains of innovation, but their presence will have—in fact, is already having—trickle-down effects. Outsourcing, many Indians argue, is training India’s next generation of tech entrepreneurs.

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