Indian Providers: Those Things in the Forest are Called Trees

We recently hosted a roundtable with senior sourcing executives from some major companies. The discussion was far-reaching and quite provocative. One topic really brought out the passion: These executives just don't see eye to eye with Indian providers.

I've written previously about the conversations I've had with most of the leading executives of the major India-based providers. To a person, and to a company, they cite their firm commitments to quality-based relationships geared around productivity.

The earful I got at the roundtable suggested that is lip service. The senior sourcing executives voiced an escalating level of impatience with the offshore providers on the essential question of the business model. They said they saw no evidence that Indian providers are willing to be measured by objectives such as service levels and output.

I've long held the view that the deeper entrenched the India-based providers become in a model that is focused almost exclusively on lower labor costs, the harder it will be for them to "mature" to what clients really seek. Indeed, several of the senior executives at our roundtable said the deadline had already passed, so they are moving on to do business with providers that are willing to commit to true outsourcing, with true service measures.

Sounds like the race for bodies is giving way to a race for services.