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The outsourcing industry, also known as BPO, in the country is the latest fad; more so, is the most lucrative field at present. Employing more than 2 million Filipinos, it is considered as one of the last strongholds of a struggling economy. It being so, territorial expansions are currently being made outside established commercial districts like Makati and Ortigas. Pampanga, Baguio, and Davao Cities are some of the few that have been added to the growing business outsourcing network.
As different markets are growing at various rates around the world, the concept and scope of outsourcing is still evolving. This could only mean that there is plenty of space for growth. From formerly outsourced services such as financial assistance, online helpdesks, mailroom services, manufacturing, telemarketing and business consulting, top companies are now investing as well into the prospects of outsourcing record management, advertising, administrative information systems, supply/ inventory, recruitment, and reprographics. This only shows that the pressure for the industry to expand their services – vertically and function-wise – and improve their services in order to accommodate clients’ demands is high. In embracing outsourcing, the impetus to execute strategic and careful planning of their workflows is recommended.
Below are the drivers behind today’s outsourcing decisions:
Accelerated reengineering benefits. Reengineering aims for dramatic improvements in critical measures of performance such as cost, quality, service, and speed. By outsourcing a non-core function to a world class provider, the organization can begin to see the benefits of reengineering.
Access to world class capabilities. World class providers make extensive investments in technology, methodologies, and people.
Cash Infusions. Outsourcing involves the transfer of assets from the customer to the provider.
Free resources for other purposes. Outsourcing permits an organization to redirect its resources, most often people resources, from non-core activities toward activities which serve the customer.
Function difficult to manage, or out of control. Outsourcing is certainly one option for addressing this problem.
Improve company focus. It allows company focus on its core businesses by having operational functions assumed by an outside expert.
Make capital funds available. There is tremendous competition within most organizations for capital funds. Outsourcing can reduce the need to invest capital funds in non-core business functions.
Reduce operating costs. An outside provider’s lower cost structure, which may be the result of a greater economy of scale or other advantage based on specialization, reduces a company’s operating costs and increases its competitive advantage.
Reduce Risks. Shared investments spread risk and significantly reduce corporate jeopardy born by a single company.
Resources not available internally. Companies outsource because they do not have access to the required resources within the company.
To conclude, Oracin and Boyd (2008) gives essential guidance on how BPOs should evaluate how they might execute strategies given current state of the constrained economic climate:
Evaluate your “operational” delivery infrastructure and determine how it can scale both up for large international opportunities and down to meet the requirements of midsize businesses. Significant opportunities await those that can demonstrate their ability to support both large and midsize businesses.
Determine which model, build-buy-partner, best suits your strategic vision. If you are a new entrant in this market, adopt the partner model to not only gain quick transaction but also to learn what works best.
Pay close attention to existing contracts especially in these economic times, to ensure that your clients believe you are bringing true value with your outsourced services.
Focus on the growth markets, especially managed print services and imaging and document archival opportunities. The former will provide you with a beachhead with your clients and the latter will provide insights into the client’s document-intensive processes and the opportunities that reside there.
Solicit and engage large BPO that are aiming to take complete control over entire business functions for their clients. The numbers in this market are very large and there are significant opportunities for partnerships to subcontract specific functions within the processes.
BPOs are fairing well despite economic crisis. Resorting to this option for companies still appear to be the cheaper option to go. Trend shows that outsourcing is a profitable industry based on general industry reports and individual financial statements of several companies.
Bernard Joseph Esposo Guerrero. Member, International Honor Society of Phi Kappa Phi. Graduate Student, Industrial Relations, University of the Philippines Diliman.
The Indian BPO industry is growing rapidly. But as the outsourcing movement grows, there is also a backlash against BPOs, as white-collar jobs move from USA and UK to offshore locations like India. With multi-lingual skill-sets developing, the European market too is likely to open up to BPOs, in the near future. Facts demonstrate that the outsourcing of BPO service and Call Center Service is growing at a fast rate.
Many of the companies that seek to outsource are in the western hemisphere and most of the BPO units are in India. Business Process Outsourcing (or BPO ) refers to a decision to sub-contract some or all non-core processes. The main motive for Business Process Outsourcing is to allow the company to invest more time, money and human resources into core activities and building strategies, which fuel company growth. Companies are concluding that by outsourcing to bpo companies they can do more profitably than others. Thus, as a call center bpo is an important ancillary activity, the most efficient decision in nearly every case is to outsource.
The business process outsourcing industry in India refers to the Services Outsourcing Industry in India, catering mainly to Western operations of MNCs (Multinational Corporations). The global market today is highly competitive and ever-changing. A company must focus on improving productivity and yet, cut down costs. Therefore, a lot of tasks that use up precious time, resources and energy, are being outsourced. BPOs, or the units to which work is being outsourced, are flexible, quicker, cheaper and very efficient. Business process outsourcing (BPO) is the contracting of a specific business task, such as payroll, to a third-party service provider.
Usually, BPO is implemented as a cost-saving measure for tasks that a company requires but does not depend upon to maintain its position in the marketplace. Customers today are more sensitive to other important aspects such as cash flow improvement, quality of service, customer satisfaction, turnaround time, accuracy, responsiveness and commitment. Business Process Outsourcing helps free up a firm’s capital and reduce costs. The functions or processes being outsourced range from manufacturing to customer service to software development and much more. A professional call center outsourcing partner can give your company Inbound Telemarketing Services and Outbound Telemarketing Services that’s superior in terms of cost, control and quality. BPO is often divided into two categories: back office outsourcing, which includes internal business functions such as billing or purchasing, and front office outsourcing, which includes customer-related services such as marketing or tech support.
BPO that is contracted outside a company’s own country is sometimes called offshore outsourcing. BPO that is contracted to a company’s neighboring country is sometimes called nearshore outsourcing, and BPO that is contracted within the company’s own country is sometimes called onshore outsourcing.
The most common examples of BPO are call centers, human resources, accounting and payroll outsourcing.
Use of a BPO as opposed to an application service provider (ASP) usually also means that a certain amount of risk is transferred to the company that is running the process elements on behalf of the outsourcer. BPO includes the software, the process management, and the people to operate the service, while a typical ASP model includes only the provision of access to functionalities and features provided or ‘served up’ through the use of software, usually via web browser to the customer. The outsourcing services being provided include – software development, Data Entry wealth management, legal services, payroll services, patent writing, evaluating and assessing commercial potential of other firms, analysis of business opportunities, manufacturing, test reporting Etc. BPO is a part of the outsourcing industry. It is dependent on information technology, hence it is also referred to as information technology enabled services or ITES. Knowledge process outsourcing and legal process outsourcing are some of the subsets of business process outsourcing.
Benefits of BPO Outsourcing
The up-front infrastructure costs involved in providing Inbound customer service whether via phone, email or live Internet chat, are enormous. State of art technology in our inbound call center will allow you to service your clients in more efficient way.
An in-house inbound call center or outbound call center requires investment in the space and technology to handle the highest demands that are expected in the foreseeable future. Backup systems need to be built to deal with system down times, maintenance or repair.
The author is a Senior Search Engine Optimizer in a Data Entry Outsourcing company in India. The company deals in data entry outsourcing and offshore outsourcing. For more information visit: http://www.dataentryoutsourcingindia.com
http://www.itinfosoft.com
Ameet Christian (SEO and SEM), (Director of Business Development) Professional Writers, Software Engineers.