The shift from multinational, to transnational, to global corporations is well underway, and the need for borderless business collaboration is becoming ever more vital.
Increasingly, today’s business climate is neither time nor location based, meaning that companies must build strong global capability themselves or through a network of suppliers to compete.
One method being used to strengthen links between partners in remote locations is the adoption of web 2.0 technology. Once solely the domain of the consumer, enterprises are now taking web 2.0 principles and ideas and applying them to the business world.
In particular, outsourcing firms and their customers have a lot to gain from using web 2.0 technology to create bespoke online networking platforms in order to improve the quality and speed of globally delivered projects.
The evolution of outsourcing
When the concept of outsourcing first emerged, its primary goal was cost cutting, using low-cost labour to supplement existing staff and leveraging economies of scale and rationalisation.
Through the offshore relocation, cost-effectiveness immediately improved but the model was insufficiently equipped to perform anything beyond basic engagements. When inadequate results were delivered on more complex projects, the immediate need to revise and resolve meant that any short-term cost savings disappeared.
The latest model of outsourcing puts long-term business impact at its core. Characterised by seamless integration between provider and customer, IT providers taking this approach combine the cost-effectiveness of offshore capability and on-the-ground expertise needed to manage projects at the highest level.
The one element that continues to contribute to the outsourcing industry’s rapid growth - apart from the availability of talent - is, of course, their improved results. Competition amongst outsourcing providers is intense and outsourcers continue to drive down costs through developing, utilising and maximising resources in India, China, Europe, North and South America. With these resources spread throughout the globe, their efficient use is crucial in generating competitive advantage, and advanced collaboration over the Internet is key to this process.
Over the last few years, consumer web 2.0 technologies have redefined how the Internet can be used to connect remote individuals, and the business world has taken note. Developments like blogs, wikis, VoIP and IM, and websites such as eBay, YouTube, Facebook and MySpace have all contributed towards a historic shift towards online networking and collaborative content generation.
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