Monday, December 14, 2009

Outsourcing Traffic Management

Sum proposes an outsourcing model for traffic management in India
Outsourcing has a simple business philosophy; a process or a function should be outsourced if it gives the company a cost leadership (or even cost saving) and can be performed or executed with more precision and efficiently than if performed or executed by the company itself. “Bangalored” as outsourcing is popularly known in US, has given a lot of companies billion of dollars in cost savings and given some other companies a more focused approach towards their core business operations and functions while preferring to outsource the peripheral activities and operations. Dell is an example how a company can gain competitive advantage with outsourcing. It outsources its production such that it is now just an assembler of customized PCs and Notebooks. It has the advantage of maintaining minimum inventories by adopting a JIT inventory approach.

While private sector is reaping the benefits of outsourcing, public sector is not left behind. A large chuck of BPO Company’s revenue in India comes from domestic outsourcing a bulk of which is from the public sector. TCS is in advanced stages of implementing a pilot project for preparing fast track passports.

The other day I was driving down a rickety and poorly managed national highway with chaotic traffic management when it occurred to my mind, why not outsource “traffic management” in India. Suddenly my mind was filled with pictures of smartly dressed men and skimpy dressed lady ‘private cops’ managing traffic with outmost precision. Never have traffic management been better or more profitable. The revenue from traffic tickets and other offences is booming and I am conferred a noble prize for putting forward such a path breaking successful idea. My dream is broken by a pot bellied traffic cop who had signals me to stop, only for me to realize later that he wanted a lift from me. I still envy his job where he can just mismanage, bully, stop and barb at anyone. Never has any other job given such perks. All said and done I strongly vouch for a outsourced model of traffic management in India, the specifics of which I can specify over a couple of hundred sheets of paper. Just as bill collection, call management or even passport issuance (issuing an identity of national importance) be outsourced so can the traffic be outsourced, where there is no external or internal threat. The traditional traffic police force can of course be coordinated and integrated with the outsourced traffic management cops.

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