Outsourcing has in the past always been seen as wage arbitrage. In many ways, some outsourcers have always seen it that way. Some offshore delivery centres always try to sell full time employees. This always means that any growth the firm experiences, means additional headcount…
This neither benefited your client or the firm in the long term. Why do we believe that? This leads to a lack of innovation or efficiency within the process, because you are wholly linked to growing staff head count and their availability to do the work.
Wage arbitrage also then means that outsourcers need to move around the world to the next cheap location to stay “cheap”.
Whilst in principle, that is possible, most businesses cannot uproot an entire business from one location to another overnight without having an impact on service levels.