IBM said South Africa is establishing itself as a
preferred outsourcing destination, and is rapidly becoming a
back-up site for India, the world's number one outsourcing
provider.
Abdul Mohammed, IBM's business development executive in South
Africa, said, "Although some Eastern European countries may be able
to provide cheaper outsourcing solutions, the value of the Rand,
the favorable time difference, as well as our proficiency in
English, are shifting a considerable amount of work to our
shores."
IBM claimed to be positioning itself as a leader in offshore
outsourcing through a "best-shore" policy, where specific sections
of accounts awarded to IBM on an international scale are outsourced
to countries that fulfill the client's needs in the most
cost-effective way.
The company is currently providing outsourcing solutions to
American Express, JP Morgan, Ericsson and L'Oreal through IBM's
internationally implemented standard policies and procedures. IBM
said it provides its clients with a consistent level of service,
regardless of whether the job is done through IBM SA, England or
Europe.
"The implementation of service level agreements eliminates the
threat of scope creep, a common concern when considering offshore
outsourcing," said Mohammed, adding that the impact of culture
clashes on outsourcing activities is a reality that companies have
to deal with.
"The English spoken in South Africa, for example, sometimes
differs slightly in meaning from that spoken in England, which
could cause some confusion," he added.
One of the major challenges facing South Africa, according to
IBM, lies in convincing Europe and the US that the country can
provide consistent quality, although the lack of an adequate
communication infrastructure is another stumbling block on the
country's path to becoming a preferred offshore provider.
"Government needs to develop a communication infrastructure that
is affordable and advanced enough to provide local companies with a
competitive edge in the offshore outsourcing market. At this stage,
our communication infrastructure is underdeveloped and
comparatively expensive," said Mohammed.
In April, IBM launched its Integrated Delivery Centre in
Sandton, Johannesburg, a facility through which the company aims to
offer high value outsourcing solutions to clients in Europe and US,
amongst other regions.
Written
by
Computing SA staff