Seven MegaTrends of Professional Services – #6 Globalization
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Continued from #5 Modularization. Full table of contents below.
MegaTrend Six: Globalization
Across the board, boundaries and borders are blurring almost into non-existence. It is no longer possible to ignore the fact that the economy is global. A pointed example is eLance, the world’s largest online services exchange. eLance allows organizations to specify the services they require, whether they be web development, graphic design, writing, adminstration or whatever else they need done. Service providers bid for the jobs posted, and the client can choose the best provider with the lowest bid. Over 40% of the services are provided across country borders. You may run a one-person show in Missouri, but you too can outsource services to bright, eager, highly-educated professionals in India, Eastern Europe, and other low-cost centers.
Competition is global. Jurisdictional differences protect some professionals from direct offshore competitors, however the MegaTrend of Modularization means that competition today is not only on the complete service, but often on its components. Clients can identify the service elements that don’t need a highly trusted local provider, and find an offshore provider to do those tasks.
Another aspect of globalization is that clients increasingly expect services to be delivered globally. However you do not have to be a global company to get business from these clients. In advertising and PR, major clients often appoint different agencies in each country or region, with one lead agency to coordinate global campaigns. Global networks of small to medium-sized law and accounting firms allow professionals to provide services to companies that are operating or exploring possibilities internationally, an increasingly common phenomenon. In order to exploit these opportunities, professionals need to be able to work with other firms. You can have a global reach, as long as you are good at collaboration.
Table of contents
– MegaTrend 1: Client Sophistication
– MegaTrend 6: Globalization
– MegaTrend 7: Commoditization
Responding to the MegaTrends
– Lead Your Clients into Knowledge-Based Relationships
– Build Strategic Transparency
– Create a Highly Networked Firm