Now the western countries and especially the US is looking to outsource many of the unlikely industries – even those industries which were thought to be untouchables or the un-outsourcables!
As Thomas Friedman said in his book, there are fungible jobs and non-fungible jobs. Non-fungible jobs are the jobs that cannot be outsourced and fungible jobs are those that can be easily outsourced.
Guess what Mr.Friedman, the non-fungible’s are quickly becoming fungible’s and the search for non-fungible’s has started.
These are the 3 industries in question and contention :
- Legal process outsourcing.
- Animation and special effects
The reason I picked these industries is these are the dearest industries and are what they call content creators. Legal process is a little different and requires lot of analysis but that is a rising star in India’s outsourcing saga.
For all the 3 industries mentioned above the savings the target company would get is 30-40%. That’s a steal for anybody to not look at this lucrative option. Even if it means displacing some jobs at home, inviting the wrath of some policy makers and attracting some additional taxes.
Rio Tinto the third largest mining company in the world has outsourced most of its legal work to CPA Global’s India arm in Noida. Indian team will work as an extended team of Rio Tinto’s legal experts. India has more than 20 well-known LPO’s which are growing fast and signing lucrative deals. Mindcrest topped the legal outsourcing companies in the world in the recent release by Blackbook of outsourcing.
eLearning is other area where we are seeing some announcements and elearning outsourcing is set to become a $600 mn industry by 2012. NIIT and Genpact are leading this space with few others. The noteworthy thing which is being outsourced is the content.
Tata Elxi’s animation and special effects unit has participated in the special effects of Spider Man-3. There are many other such incidents and the well known animation companies in India can be counted on fingers. Hollywood is seriously looking for some serious Indian talent. If you are saving 40% on the cost can you blame them?
Though domestic animation industry is looking for inspiration and is having a amar chitra katha hangover it is growing and will soon come out of it. Roadside Romeo is one such adventure and Amitabh Bacchan starrer Aladin is rumored to use some exclusive special effects done by Mumbai based EyeQube.
Now, that these are outsourced you might argue that they are not un-outsourcable to start with. That is an easy debate and you will win. But, if we have looked at it 10 years ago there would be no debate. India couldn’t do it. And now the statement is – why can’t we do it in India?
Except the presidency of the United States and the captaincy of Pakistan’s cricket team – is there anything that cannot be outsourced?
PS : Both outsourcable and un-outsourcable are not proper English words.