Will outsourcing regulations work in Brazil?

Ian Ryder is the deputy chief executive officer of the British Computer Society. Given the emphasis the BCS places on the development of a long-term career in IT, IT Decisions asked Ryder for his opinion on some of the issues and questions raised by the proposed outsourcing commission here in Brazil. IT Decisions: Given the proposed outsourcing commission in Brazil may propose sweeping changes to employment law in Brazil, how can you make outsourcing work smoothly?

Ian Ryder: Outsourcing is actually a corporate operational strategy which is intended to deliver higher efficiencies to both the business and the customer. Like any strategy or idea / solution, it can’t successfully be forced into existence and expected to work smoothly!

With legislation, governments are in a position to force things through which are not helpful but merely political game-playing, but this current change in Brazil can only come about if there is a will from both sides to make it work and work better; the system to enable the agreed changes to embed and finally, the balance so that all parties feel the benefits.

ITD: Is outsourcing unavoidable in the modern corporate environment?

IR: Again, outsourcing is, as you have already said in your own writing, not only applicable to IT but to most industries. As such I do not see it ever going away – can you really imagine a world where large manufacturers, for example, start doing all their own supply-chain distribution again?

However, I can see a world where companies start in-sourcing things like customer call-centres again, which often don’t work well when outsourced.

ITD: How do you balance employee rights and expectations against the need for corporate flexibility and ability to compete?

IR: This is, and always has been, a tough balance. In truth and reality, there will always be both bad employers and bad employees, each of whom see only their own needs and are incapable of seeing the benefits to both of compromise. I’m afraid

I believe this is simply down to the basic human behaviours of understanding, communication and compromise. It is not rocket science or arm-twisting!

Image by Alan Clark licensed under Creative Commons.