Through my experiences, the resistance from Asia companies and
businesses (towards outsourcing) is that they are not convinced
that through outsourcing certain functions of their business
processes can bring about significant savings in their operating
cost. Yet an uncanny feeling I got from them is that the root is
not about cost but about control. The context of doing business
in Asia is of control. The greater the illusion a company in
Asia has about control, the greater the resistance it will have
towards outsourcing. The typical paradigm is that if they can
see it, they can control it.
Outsourcing to them is to abdicate control (because they can't
physically see what the outsourcing vendors are doing). They
sincerely believe they have everything under control while to an
outsider, the business is in disarray. Thus, the management of a
typical Asian business thrives on the faith that they are
indispensable. Another observable characteristic of an Asian
company is that the foundation of which the company is built on
is on an individual's perspective (not as a corporate entity).
Thus, in approaching Asian company with the outsourcing
paradigm, the outsource vendors have to bear in mind the
cultural sensitivities as follow;
1) They are not features-oriented. Plainly, they need to know
how things are done and the results the vendor is going to
deliver. (Not about all the whistles and bells that come along
as a "package".)
2) They must be involved in every aspect. They might even call
three times a day to check on work progress.
3) Disappoint them once is all it takes for them to drop you
like a bomb.
4) They are blind to "premium" pricing, only discounts,
discounts and more discounts.
5) To them, the deadline for project completion is always
yesterday.
After painting such a picture about a typical Asian company, I
must say that once you can effectively take care of the
above-mentioned concern, you find yourself gaining more than a
customer. You gain a long-term friend.
I would be posting more articles on how to build a long lasting
relationship as a service provider. So until then, stay on your
toes.
Best Regards, Michael Kuan
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