Why Two Countries?
Outsourcing centers tend to cluster in locations with low costs and a readily available workforce. However, these locations also tend to be prone to greater risk (“country risk”). Outsourcing 100 percent in any one country multiplies the risk.
Distributing processing facilities across multiple national and international locations mitigates country risk. A typhoon in Manila is unlikely to affect Mumbai. Political instability in the Caribbean has no repercussions in Chennai. A national holiday in one country does not impact production in others. And establishing multiple locations within a country enhances redundancy planning and rapid disaster recovery.
Minimizing redundancy costsUsing one outsourcing vendor with multiple locations is generally less costly than using separate vendors – greater volume creates more price leverage. IIMI currently has production centers in two countries (Sri Lanka and Bangladesh). Most of our major projects are divided among facilities in both countries. In the event of an adverse situation, e.g., natural disaster, Internet failure, etc., production can be shifted to our other facilities until the situation returns to normal.