A great outsourcing option? Perhaps not

Spot the missing word in these two quotes from just a few months ago. The first is from Computerworld.

The European Outsourcing Association named ______ its 2010 outsourcing destination of the year. "________ is a rising destination and well suited to support multinational corporations for their Africa and even Middle East operations," said Atul Vashistha, CEO of offshoring consultancy NeoAdvisory.

Outsourcing is quickly becoming one of _____ leading industry’s and targeted incentives for new firms could be a major part of ______ generating $2 billion in revenue by 2013 and $10 billion in 10 years, the communications minister said last week.

Yes, I’m sure you’ve guessed that the missing word was “Egypt”.

But last week brought political strife in Egypt and the government reportedly blocked all Internet and cell phone service as anti-government protests continued in the North African nation. Satellite based services were however still a possibility; but not a happy situation if you’ve got any outsourced services running out of Cairo.

So, perhaps not such a great outsourcing location after all. And a reminder that the risk of political or social unrest or instability is; a) an essential factor to consider in any supply chain risk analysis, particularly for critical goods or services; and b) notoriously difficult to predict. Did any ‘expert’ in all the 2011 predictions made just weeks ago suggest that we would see the Tunisian leader overthrown and riots on the streets of Cairo by the end of January?

What next? I have no idea. But I suspect a lot of CPOs, CIOs and CEOs will be looking a little nervously at all those critical operations that have been moved offshore to different parts of the globe over the last few years. And this CIO.com article entitled “Offshoring: the 25 most dangerous cities for outsourcing in 2010” is a good start.

Voices (2)

  1. Peter Smith:

    Great piece here on Eygpt and outsourcing
    http://www.horsesforsources.com/egypt-crisis-012911

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