Yin & Yang strategic outsourcing

12.09.2006

"Staff turnover is common in this industry," said Chan. "But the way we manage our staff is important to minimize the impact on service quality, as well as to protect the insight held by the outgoing staff as they move to a new company."

The common belief also holds that both parties treat the relationship as a partnership, rather than a traditional vendor-client relationship.

"If the clients are looking only for the best bargain, the vendors would realize that," she said. "We cannot provide a service without making a profit. But if the clients would consider our position, we can develop a win-win situation through trust."

Chan said that these pro-active outsourcing relationships are not common in Hong Kong. According to Gartner, it is also rare among enterprises around the world. The technology research firm conducted a worldwide survey with 945 individuals early this year on outsourcing.

It concluded that while strategic IT outsourcing can be an integral part of a company's long-term business success, most organizations resort to outsourcing as a short-term tactical measure to lower costs. The survey indicates more than half of the respondents identified 'controlling or reducing operating cost or improving efficiency' as the primary value they receive in outsourcing.