For the sake of differentiating

The high-tech dynamic market of today demands continuous efforts from companies to sustain competitive advantage. IT companies involved in outsourcing seem to have beaten to death various principles of creating and sustaining competitive advantage. While cost differentiation has become an undistinguished factor in outsourcing, ‘focus on a particular niche’ has been provided a broader meaning. The communication emanating from IT companies and the activities carried out by them certanly points out stark dissonance. The message seems to conveniently broaden ‘niche’ and ‘focus’ to accommodate service offerings and target audience of these IT companies.

With the industry offering no more room for differentiation to outsourcing companies especially on the delivery, technology or cost front, there is increased activity on the communication initiatives undertaken by these companies. After all, isn’t it the media that provides a platform for creating differentiators? Be it advertisement or editorial, the increase in outsourcing various activities by businesses across the world has led to increased competition among firms for creating ‘competitive concept differentiators.’ Take a look at the various acronyms donning the pages of mainstream media – BPO, KPO, AMO, vBPO, ADM…to name a few. Is there a clear cut differentiation among these? Well, a lot depends on the context where it’s being spoken. For a person in the US, anything outsourced would come under the purview of BPO. Not in India where a burgeoning number of companies are trying to differentiate from each other for garnering a larger pie of the outsourcing market.

When the market is a clutter with companies operating in the same having no clear cut competitive differentiators, the industry will witness ‘competitive concept differentiators’ essentially aimed at gaining prominence in the clutter and establishing thought leadership. The objective, of these firms whose business models can easily be replicated, is solely to gain mindshare of target audience comprising customers, prospective customers, investors, analysts and talent. The number of concepts pervading the market will exemplify this fact. While the industry evolved with the concept of outsourcing, it gave rise to offshoring or offshore outsourcing. Then came best shoring, co-shoring, smart shoring, global development model, 4th generation outsourcing and a lot more expected soon. Communication professionals seem to be having a field day.