Outsourcing of higher skilled work and its impact on the virtual team relationship

by Francis on August 13, 2011

For most of the time the vir­tual teams approach has been used in the mod­ern indus­trial world, which is really since the inter­net and com­puter tech­no­logy reached a point where it could sup­port multi centre work, one of the key aspects most heav­ily exploited has been to out­source the more labour intens­ive, less tech­no­logy or know­ledge driven work to high volume, lower cost centres, this has taken the forms of call centres mov­ing to India, back office sup­port func­tions mov­ing to Kuala Lum­pur, com­puter cod­ing for rel­at­ively low tech func­tion­al­ity mov­ing to India, Rus­sia, China, and in some cases the work has been out­sourced domest­ic­ally to a centre where there is a lar­ger pool of labour that will do the work for a lower cost.

While this form of out­sourcing has been very dis­rupt­ive to the employ­ab­il­ity of the lower skilled mem­bers of work­forces in developed, so called first world coun­tries, it has not been such a great threat to the higher skilled work­ers there who have typ­ic­ally seen their work-flow change to adopt to the vir­tual team approach, but for them it has meant that the people they man­age are now in another loc­a­tion, their peer group is still typ­ic­ally co loc­ated with them, speaks the same lan­guage, has the same cul­tural out­look and “feels” vary familiar.

All of this is, how­ever, slowly chan­ging.  The aging work­force in these developed nations is now start­ing to become too small to provide even the rel­at­ively small pool of highly skilled work­ers for many pro­jects and the work­ers in the coun­tries to which the work has been out­sourced for so long are start­ing to mature their skills to the point where they can now com­pete on a level play­ing field with the first world high skilled work­ers, couple this with the side effect of out­sourcing the rel­at­ively simple work that in pre­vi­ous times was per­formed in the colocated team by the new gradu­ates and devel­op­ing per­son­nel, where those low grade per­son­nel have not had that expos­ure that would have let them develop to become the higher skilled mem­bers of the pro­ject teams and things are start­ing to change.

For organ­isa­tions set up to man­age this chan­ging centre of grav­ity this migra­tion of skills is a rel­at­ively minor threat, they still need to main­tain qual­ity and pur­sue their new devel­op­ments, only now much of this new devel­op­ment can be under­taken in what has been and for many still is seen as the devel­op­ing world.  Where this change is now being felt the hard­est is in the hearts, minds and in many cases the bank accounts of the employ­ees in the high skills centres who are now hav­ing to come to terms with a world where they are no longer always the man­ager, man­aging down to a vir­tual team of high volume lower cost per­son­nel, now they are faced with work­ing across to peers loc­ated in these high volume centres and in some cases even find­ing them­selves work­ing for the people from those centres, people who have, over the last two dec­ades gone from being the appren­tice to now being the master.

How the indi­vidu­als and their organ­isa­tions will react to this could be one of the defin­ing points in the global work­force over the next few years, as the high tech jobs fol­low the low tech jobs out of the first world and into the devel­op­ing world, leav­ing behind a range of lower skilled less trans­port­able jobs.

So, what does this mean for the world of vir­tual teams com­mu­nic­a­tions, well, in some ways things will still be the same, the exist­ing issues of com­mu­nic­at­ing across cul­tures and time zones, com­mu­nic­at­ing with people with dif­fer­ent power dis­tance and indi­vidu­al­ity expect­a­tions, dif­fer­ent views of long term and short term invest­ment hori­zons etc. these issues will exist as long as there are dif­fer­ent cul­tures, which is to say they are here for at least the fore­see­able future. What will change, I believe, is the dir­ec­tions of com­mu­nic­a­tion and the centre of grav­ity of many organ­isa­tions, sud­denly people work­ing in Europe or the USA, who have been used to dic­tat­ing the times of inter­na­tional video and tele­phone meet­ings to suit their routine may find their meet­ing agenda being set from Asia.

Recog­nising and accept­ing this chan­ging rela­tion­ship will bring many addi­tional skills and strengths to the global work­force, organ­isa­tions will, out of neces­sity evolve from being mono-cultural to multi-cultural, but for many in the west­ern world it will not come eas­ily in the lat­ter part of their careers, and unless the more costly nations can find a way to up skill the new starters in their organ­isa­tions such as the new and recent gradu­ates, over the next few years the reversal of roles could start to become very pronounced.

Copy­right secured by Digiprove © 2011 Francis Norman
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