Commentary

Paul McDougall
Editor At Large, InformationWeek  

Outsourcing Reaches Its Tipping Point

Author Malcolm Gladwell says a tipping point occurs when a phenomenon starts to multiply exponentially, as though it were an infectious virus. Outsourcing's tipping point occurred this week when Accenture announced it would have more workers in India than in the United States by August.

Author Malcolm Gladwell says a tipping point occurs when a phenomenon starts to multiply exponentially, as though it were an infectious virus. Outsourcing's tipping point occurred this week when Accenture announced it would have more workers in India than in the United States by August.Speaking Monday to reporters in Bangalore, Accenture CEO William Green said the consulting and outsourcing company will add 8,000 workers in India this year, bringing its total head count in the country to 35,000. That will surpass the 30,000 workers employed in Accenture's U.S. operations.

"Though we continue to hire in other locations, too, the recruitment will be the highest in the subcontinent, as India has become a critical part of the Accenture world and integral to our growth strategy," said Green, according to text of his remarks released by Accenture India.


More Global CIO Insights

White Papers

More >>

Reports

More >>

Webcasts

More >>

With those words, Green opened the floodgates. The steady stream that has been carrying some U.S. tech jobs to India is poised to become a torrent. Why? Because until now no CEO of a major American company has gone on the record to say that he plans to make India his main base of operations.

But that psychological barrier has been breached.

And anyone who has followed business for any length of time knows that CEOs have a stronger herd mentality than elephants. Sometimes they get the urge to merge and there's a huge wave of M&As. At other times, it's all about disaggregation. The point is, it often takes just one bold move by a CEO at a major company to have all of his or her peers rushing to follow suit.

Now that Accenture's Green has said that India will be the company's largest geographical unit, it's just a matter of time before the following thought starts germinating in executive suites at IBM, Microsoft, Hewlett-Packard, and other tech companies anxious to capitalize on the country's low-cost workforce: "It it's good enough for Accenture…"

And so the tipping point is reached.


Related Reading




Currently we allow the following HTML tags in comments:

Single tags

These tags can be used alone and don't need an ending tag.

<br> Defines a single line break

<hr> Defines a horizontal line

Matching tags

These require an ending tag - e.g. <i>italic text</i>

<a> Defines an anchor

<b> Defines bold text

<big> Defines big text

<blockquote> Defines a long quotation

<caption> Defines a table caption

<cite> Defines a citation

<code> Defines computer code text

<em> Defines emphasized text

<fieldset> Defines a border around elements in a form

<h1> This is heading 1

<h2> This is heading 2

<h3> This is heading 3

<h4> This is heading 4

<h5> This is heading 5

<h6> This is heading 6

<i> Defines italic text

<p> Defines a paragraph

<pre> Defines preformatted text

<q> Defines a short quotation

<samp> Defines sample computer code text

<small> Defines small text

<span> Defines a section in a document

<s> Defines strikethrough text

<strike> Defines strikethrough text

<strong> Defines strong text

<sub> Defines subscripted text

<sup> Defines superscripted text

<u> Defines underlined text

InformationWeek encourages readers to engage in spirited, healthy debate, including taking us to task. However, InformationWeek moderates all comments posted to our site, and reserves the right to modify or remove any content that it determines to be derogatory, offensive, inflammatory, vulgar, irrelevant/off-topic, racist or obvious marketing/SPAM. InformationWeek further reserves the right to disable the profile of any commenter participating in said activities.

Disqus Tips To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy.
T-Shirt Giveaway T-Shirt Giveaway: Each week we're selecting one great comment from our readers. The author of the comment will receive an InformaitonWeek Community t-shirt. So get posting!
Subscribe to RSS

Resource Links