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Mauritius as major outsourcing destination: interview

AvantiKumar | Aug. 26, 2013
The Mauritius government recently held an invitation-only conference to attract more international companies to the volcanic island nation in the Indian Ocean, says Malaysia-based IAOP Global Ambassador Bobby Varanasi.

However, taking a shot at how this could change in the next decade, I would think these markets could be as follows:

  • Mauritius - net supplier and regional hub
  • Malaysia - net buyer and regional provider (value-centric)
  • India - coexistence of small buyer (large) and large supplier (regional & global) markets
  • China - coexistence of small buyer (large) and large supplier (regional & global) markets
  • Philippines -net supplier for global markets


Mauritius (JES_8902) modified 

Photo - (From left): Bobby Varanasi, Global Ambassador, IAOP; Hon. Tasserajan Pillay Chedumbrum, Minister of ICT, Republic of Mauritius; and Vishnu Gondeea, Permanent Secretary to Ministry of ICT, Republic of Mauritius.

Moving forward: What can Mauritius learn from Malaysia and of course vice versa?

Actually, there's nothing much that Mauritius can learn from Malaysia given Malaysia's own struggling position (or discerning lack of distinctiveness) apart from avoiding the mistakes Malaysia has made when positioning sector competencies globally.

Mauritius on the other hand is far ahead of Malaysia in the context of regulatory readiness, its implementation and sector governance. Interestingly, Malaysia can surely learn from Mauritius' experience in creating these soft-enablers that are currently not as conducive. On the other end as a Regional Hub that's not incumbent on a linear growth model tied to the number of jobs, the nature of the pursuit is different from that of Malaysia hence comparisons can only take one so far. Mauritius can surely learn to appreciate African markets and their latent needs more, and provision for the impending explosion in demand.

Would there be any synergies between the outsourcing industries?

Outsourcing between sectors is quickly morphing into seamless integrated business services. The days of distinctive discussions around ITO, BPO, and KPO are not relevant anymore. The emphasis is value - created best by bringing together a myriad of competencies spanning the technical and business layers, and delivered through both traditional and modern channels (SMAC stacks). That is the modern sourcing for you.

Has there been a significant trend towards insourcing? Should outsourcing remain a key target sector on national agendas in Malaysia, China, India, Philippines and so on?

All business models are relevant across much of the developing world. In a quest to create positive experiences for customers, increasingly the discerning nature of 'domestic' customers in these countries is putting the pressure on providers to look beyond technology and process solutions as the only way to resolve thorny business issues.

The ability to integrate technologies and process competencies with delivery channels in a seamless manner and provide the customer with an end-to-end experience (while manifestly managed with transparency and accountability), measured in terms of business outcomes is what makes for a resilient and value-driven pursuit.

Any business model that helps an organisation get to such a value will remain an important strategic driver. Hence precluding any models from reckoning based on past experiences (with adoption, not necessarily utility value) are both short-sighted and damaging in the longer term.

At a national level however, for nations pursuing creation of new industry sectors, the sourcing sector will increasingly get embedded into core sectors, unlike the manner in which sourcing is treated now with its own distinctiveness. The day when sourcing is spoken of in the same breath as business strategy is, would be the day that sourcing has truly embedded itself into Boardrooms particularly in this region.


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