The Confession and Its Impact

It was a sad day in the annals of outsourcing industry where a leader who pioneered outsourcing concept came up with a confession statement that shook the foundations of the industry.

Trust, integrity, client relationship along with proven people & domain skill is what matters in outsourcing. The series of events starting with the confession statement from one of the leaders of the outsourcing industry, the first three factors are undoubtedly compromised. The resultant uncertainty has created a major impact with the employees as well as the clients that outsourced the services to that organization. Moreover the investor community who believed and invested in this sector due to perceived transparency factor compared to other sector is literally shaken to the core.

The impact of this unfortunate event may be mitigated if appropriate action is taken with speed by the regulatory authorities. The prime importance is to make sure that the organization in question should adhere to all service commitments to the clients and partners. Speedy actions like appointing people with integrity & credibility to the senior positions, providing near term job security to employees, giving time for clients to do the transition management and provide justice to investors who have lost their savings is a must. The regulations which are already there should be enforced and new regulations to plug the loop hole should be formulated. The essence is to make sure that these incidents will not repeat again by punishing the people who are responsible for these types of acts severely.

I believe this incident will not impact outsourcing industry whether it is carried out on onsite, nearsite or at offshore since the business benefit associated with it is proven and well accepted. The industry will now factor in additional criteria’s like proven corporate governance, intelligence inputs and the integrity of the senior leadership while discussing new initiatives. This incident will also shake up the industry to become more transparent and make the regulators to enforce regulation rather than taking cover on self regulation done by the corporate.