Reasons You Might Consider Business Outsourcing There are many reasons you might consider outsourcing for your company. Many of those reasons might include the resources, cost, or staff. If you are a growing company you might have many projects you need to complete for your expansion. If you are upgrading systems you might have projects you need to complete. You might not have a staff that knows how to complete the project or your staff may not have enough people to complete the project in the time frame you would like it to be done. Outsourcing is an excellent idea when you face issues like this. A company can come into your business and complete the project on your required deadline. Another reason you might consider outsourcing is to save money. You might currently have full-time employees in positions that only require them to be around for certain times of the year. It is cheaper to eliminate the full time employee position and bring in the outsourcing company only when you need them to work. When you bring in an outsourcing company to complete a project rather than hire a full time employee you are saving on the yearly salary and the benefits you would have to offer that employee. In most cases, it is usually cheaper to hire an individual or team of people on a temporary basis then it is to use your own staff. There are many reasons you might consider outsourcing. You might have a full-time employee you need for one specific thing but often has a lot of downtime and you have to find work for them to do to keep them busy. There is no reason to pay a full-time employee if you can hire someone for the duration you need them.
Business Outsourcing Labor Criticism Issues Many people believe business outsourcing to companies outside of the United States is not right and we should hire our own citizens. Many of the accusations are regarding keeping the money in the U. S., dodging taxes, and more. When a company uses business outsourcing for their project needs, customer or technical support, or call centers they are saving a lot of money they would normally have to pay to the government in Federal taxes. Businesses usually have to pay a double tax. Corporations are taxed on an extremely high level income tax rate. When a company uses a business outsourcing company then they don’t have to pay the taxes to the United States. In addition, they are able to pay a much lower wage to people who are willing to accept whatever they can get. This can save a business millions of dollars in a year. Another big criticism is that American companies need to keep the money in the United States. They need to create the jobs for Americans and Americans need the money. The money and the jobs should stay in the U. S. and this would be supporting the local economy. Many people believe this argument to be true but the money savings is the biggest benefit. S arbanes-Oxley has also forced companies to flee out of the jurisdiction of the United States so they do not have to be compliant. Many people complain about companies outsourcing their employees and giving jobs to people outside of the United States. However, businesses benefit much more because of the high taxations that occur on businesses and the strict policies toward businesses.
Business Outsourcing And Verifying Employees When you decide upon business outsourcing for project needs it is important to verify who the people are who will be working in your business. You should verify the employees as you would your own. If you run backgrounds tests on your employees, then you should do the same with an outsourcing business’s employees. It will be hard for you to demand that outsourcing employees agree to a background check or a drug test. What you can do is use only a company who will provide the proof to you the people are acceptable. You should get a name of every person who will be entering your business working on the project. Sometimes when there are a lot of people entering the business from an outsourced company it can be confusing who is with the company and who is in the building without authorization. Be sure you know each employee who works for the outsourced company and provide them with temporary badges to wear. This way, anyone who is not wearing one of the temporary badges can be questioned with reason. Your employees have a right to feel safe at their place of work. You cannot bring in people who have dangerous backgrounds to work on an outsourced project for you. ou should verify all of the provided information and know every person who will be working on an outsourced project. All of these employees from the business outsourcing company should be properly introduced to your staff so everyone feels comfortable with the people walking through the halls.
Outsourcing Your Marketing Needs Have you ever stopped to notice that your marketing campaigns and activities are not paying off, or getting your desired result? So, you are spending a fortune on marketing booths, exhibits, brochures, flyers and so on and still your client database has not improved? Have you ever stopped to think what are you doing wrong? What is it that you lack? You may have a pool of right-brain creative people in your marketing team, producing impressive brochures and coming up with great exhibit ideas, but do they have the left-brain analytical people for a better understanding of the statistics and trends in the modern-day information and tech-savvy market? I guess not. This is the usual reason why most companies waste time, money and effort on futile marketing campaigns and activities-they don’t have the right people for understanding the market. Yes, they have the creative ones but that is not enough to generate the result your company is aiming for. These creative people of yours may only be wasting their creative talent because it is not well-aimed at the target. Fortunately, more and more companies are realizing this mistake and so they are now outsourcing their marketing needs for a more focused and successful marketing endeavors. The trend started with outsourcing only a part of the marketing function, which is the advertising. Now, companies are already outsourcing the more nitty-gritty marketing tasks such as customer analytics, lead management and direct-mail management. What used to be simple marketing tasks have now been realized as very significant factors that can greatly help boost marketing success. Marketing outsourcing business companies have recognized this importance and have focused on producing experts in these fields so they could provide the best service to their clients. So, these days, services for these seemingly mundane but very important marketing tasks, can be outsourced for better results. And a lot of companies are realizing the sense in the idea. A recent survey reported that 53% of polled marketing executives are now planning to outsource their marketing needs. They now realize that outsourcing marketing activities saves the company marketing cost, while at the same time producing improved quality work that generates the result they wanted. Also, they see now that mass marketing is no longer reliable for reaching more prospective customers because nowadays, communication has become more complicated than ever, hence, it needs expertise on computer aided analysis. And this is what marketing outsourcing business companies have and offer. However, this does not mean that marketing executives and officers of the company are no longer needed. The opposite is true. While the activities are outsourced, there is a vital role for the marketing executive to play-they still need to build and maintain good working relationships with their clients and customers. The good working relationship still rests with them because customers still need to see the company in flesh and blood, despite the convenience of outsourced computerized services on the Internet. The marketing executives, of course, still have to oversee the production and progress of the marketing activities that are being outsourced. Of course, that still has to be managed and monitored to ensure the company get the best result. Also, they are to build good working relationship with these outside suppliers to ensure that the company’s specific needs are met. As in every business, success lies in building and maintaining good working relationships with both the clients and the suppliers.
Business Outsourcing For Risk Management When you hire a business outsourcing company for your risk management needs, you need to spell out the context for your risk management process. The steps should include identification, planning, mapping, defining, developing, and mitigation. A business outsourcing group is your best option for risk management issues. This is because if something happens you can put the blame on someone else and it is not all on you. The first step the company will cover is identifying the risks that may occur to the company or the domain of interest. You will need to establish a plan with the company for the remainder of the process for your risk management. When you are working with a business outsourcing company they will map out the social scope of managing risk, the stake holder’s objectives and identity, and the basis risks are evaluated. They will also determine if there are any constraints that might slow down your project for establishing a good risk management process. You will then need to establish a framework which will explain an agenda for all activities you need to complete to meet your goals. This will be a process of setting certain timelines for completions of certain projects. Once you have worked with your business outsourcing group with these steps you will then need to develop an analysis plan to verify your risk management solution is successful. You will need to mitigate also using the resources available to you. A business outsourcing company will help you with all of your needs when you need to establish a solid risk management plan for your business.
Should You Be A Emphasys Advanced Outsourcing LLC Business Associate? Is it worth your hard-earned money to be a Emphasys Advanced outsourcing business associate? Consider the type of services offered by the BPO vendor and your outsourcing needs. Is there a perfect match? How Emphasys Views Business Process Outsourcing Having a good working relationship with your outsourcing business associate is critical to your company’s success. One thing you should definitely agree on is how you both perceive business process outsourcing. For Emphasys, the value of outsourcing is seen in the firm’s ability to help you save on costs, improve productivity, speed up business results, and leverage resources. Emphasys also understands the necessity of operating from a centralized location. Emphasys in particular is proud of being able to exceed their clients’ targets. They can, for instance, serve multiple sites and time zones from a singular point of origin. Emphasys also takes pride in its flexibility, adaptability, and responsiveness to the needs of their clients. They are capable of delivering such service by utilizing the best that technology has to offer, world-class structure, quality methodologies and practices, and by employing a customer-focused, well-motivated, and highly educated workforce. What Kind of Outsourcing Help Can You Expect from Emphasys? Once you become a business associate of the firm, you can expect to enjoy any or a combination of the following benefits. Reduced Costs Emphasys can offer you various plans to lower or maintain your operating costs through outsourcing. Access to Expert Capabilities With the help of Emphasys, you’ll be able to make use of technology that was previously beyond your budget. New tools and techniques will also be at your disposal together with enhanced documentation, procedures, and methodologies. And the best thing about it is that you don’t need to spend time, money, and effort training your workforce for it. Emphasys can easily take care of that as well! Business Process Reengineering Change, they say, is the only constant thing in the world. Your company’s inability to respond and initiate changes could place itself in danger of stagnation. With the help of outsourcing, you could derive clues and other important information to hasten the process of business process reengineering for your company. Risk Management Risk is an eternally present factor in the business but there are various ways for a business to lower them until they’re relatively manageable. One effective way of managing risk is by outsourcing functions that you are do not have the best resources to handle. Through outsourcing, you become more flexible and obtain more time as well to concentrate doing what you’re best at. Increased Availability of Capital Funds Outsourcing lead to reduced costs and consequently, it frees up a bigger portion of your company’s capital. As you no longer have to spend money on non-core functions, you get to have greater funds at your disposal - funds you can invest in more worthwhile projects. Outsourcing Services Offered by Emphasys With Emphasys, you can expect help in various departments such as application development, support, and maintenance, customer and technical support services, supply chain services, IT help desk services, offshore development centers, and finance and accounting services. How Emphasys Helps Outsourcing Business Associates Succeed Emphasys operates on a relatively simple policy to help their clients succeed. They have three primary objectives: provide clients a secure and responsive onsite team, a skilled but reasonably priced offshore team, and a flexible regional team of experts.
Business Process Outsourcing Business process outsourcing used to be exclusively implemented by manufacturing firms but today, even service-oriented firms have been benefiting from them. Business process outsourcing or BPO refers to activities or functions that are contracted to a third party to reduce costs, improve productivity and efficiency, and achieve greater innovation. Types of Business Process Outsourcing Various functions of a business can be outsourced. What they are will depend on your company’s strengths and weaknesses and its projected benefits. Customer Relations Management This is arguably the activity that’s most commonly outsourced by both manufacturing and service-oriented firms. Indeed, a huge majority of the BPO industry is composed of call centers specifically tasked to handle customer relation needs of client firms. Equipment Rather than invest in equipment that they will only occasionally use, companies prefer to outsource their need for expensive equipment by renting them instead. Whereas outsourcing agreements are commonly long-term for customer relation activities, outsourcing equipment needs are commonly done on a per-project basis. Finance and Accounting In dynamic and highly competitive industries, companies need to focus more on product development and whatever aspect of their business that serves as their core competency. Because of this, the company has lesser time to concentrate on administrative functions like finance and accounting. Most companies choose to outsource finance and accounting functions to continue devoting most of their attention in improving organizational strengths. Human Resources One of the best examples of outsourcing human resources activities is the Bank of America. For quite some time now, the well-known banking company has relied on Exult, a BPO human resource vendor, for all its HR needs. HR management is not something that just about any manager can handle as it deals directly with people and all related issues. Recruitment, compensation, and performance evaluation are just some of the many key activities in HR that have direct impact on an organization’s ability to achieve its goals. Logistics Logistics refer to the management process of all materials and goods used and produced by the business. Typical functions making up a company’s logistics include but aren’t limited to product allocation, scheduling, and forecasting, inventory control, and order entry. A small fashion designing business may choose to focus on designing products and then outsourcing its entire logistics needs to a BPO vendor that’s well-versed and more experienced in handling such activities. Supply Chain Management Also known as SCM, this process involves the planning, implementation, and control of supply chain functions. Logistics is a part of supply chain management. Common problems in SCM include distribution network configuration, inventory management, integration of information, distribution strategizing, and cash flow management. For companies to enjoy success in outsourcing their SCM functions, they must be prepared to involve their partners in local and central activities to a certain extent. Security Finally, most companies nowadays choose to completely outsource their security needs, regardless of their preference for automated or human-managed security. Security is a highly specialized field. An advertisement firm would hardly know, for instance, what the best security measures are in cases of break-ins. By outsourcing security needs to the appropriate BPO vendors, companies are rest assured that their assets are under strict protection of professionals. No longer having to worry about security concerns, companies may then concentrate more on other and pressing activities. Business process outsourcing is not exclusive to big businesses and corporations. Your small business can benefit from BPO, too, if you know the right activities to outsource.
Why Outsource Any Business Process at All? You might have heard of the idea of outsourcing some of organizations’ business process and you wonder why it is becoming more and more popular these days. Business Process Outsourcing, or commonly known as BPO, is the trade of services between a company and an outside supplier, or provider of services. The BPO Industry has been gaining popularity these days, providing mainly non-core, but lately even core, business processes to organizations that need the expertise and objectivity of an outside provider. Services that are commonly outsourced include financial services, like book keeping; business consulting; call center or customer care services; typesetting; animation and multimedia; marketing; and a whole lot more. Now, you may ask is there really a need to outsource these services when you can have, or may already have, a whole department dedicated to these areas? True. You can have a whole department focusing on these tasks and services but have you ever asked and analyzed objectively if your business is getting the desired result? And do you think the amount of investment you put on it is worth the result? Many companies these days realize that it is more cost effective to just outsource some of their business processes. And that is just one advantage of business process outsourcing. By availing business process outside the company, you avail of the following advantages: * Cost effectiveness. With BPO, you can be assured of increased profit with the best quality services that they offer. The profit growth offsets the investment you put in paying business process outsourcing companies. So contrary to general belief that outsourcing is expensive, you are actually saving money with the increase in profit and income. * Access to outside expertise. Sure, you have your creative team under your roof, but are they generating your business’ desired result? Some in-house experts are even overly paid for their service while not actually delivering the best positive results that your company deserves. BPO companies house the experts with creative talents and experts with analytical prowess. So you are assured that your business is in a balanced packaging, increasing your profit and building a better image for your company as well. * Focus. By putting the nitty-gritty details of some non-core business process in the hands of these outside but trustworthy experts, your company can now focus on the more important tasks and transactions that require more of your physical presence and attention. The executive officers’ minds can focus on more strategic ideas and programs to improve the company’s performance in the market. They have now more time to explore new and innovative ideas. * Improved Productivity. BPO companies ensure that they give their clients better and faster services because they recognize the great importance of time in business. Time is money. So outsourcing non-core business processes buys the company more time and more production. * Increased Competitive Edge. With the increased efficiency at work, organizations are given an advantage against rival companies in their respective industries. Since they have more time for inventing new things and ideas, improving products and services, they gain a sharper competitive edge against other companies that still struggle with their in-house processes. Considering all these advantages, take a look at your own company and ask, "Are you getting the most out of your business?" Or, "Are your hands tied and bound with the dirty work so you are not progressing as you should?" Maybe, it’s about time you outsource the dirty work and leave it to the experts!
What Is Business Outsourcing? Companies might consider business outsourcing for many different reasons. Outsourcing might be considered for many different business segments. Business outsourcing is when a company hires an outside source to complete work or a project which would normally be done by the staff. A company might consider outsourcing for saving money by cutting down on costs or they might not have the employee resources to complete a particular project. Outsourcing gives a company the opportunity to complete a needed project performed by people who are not their employees. This means they don’t have to pay a salary or provide benefits to the people also. When business outsourcing occurs the company will usually enter into an agreement with the outsourcing company which is usually a contract. The contract will usually include the terms of the agreement like steps throughout the project, time the project will take, people involved, cost, and required resources from the client. There are many different types of outsourcing. The most common segments of a business that hires outsourcing companies for assistance include accounting services to help with payroll, inventory, and financial issues. The biggest field of outsourcing today for companies is in the Information Technology field. This is because companies will upgrade their phones, computers, need cabling installed, troubleshooting, and more. Companies also outsource people for customer service positions, call centers, and telemarketing. Outsourcing is a solution for a business to save money and complete projects and tasks in the workforce without having full time employees do the work. Outsourcing is becoming more and more popular across the world every day.
How to Design an Effective Call Center Business Outsourcing Plan Outsourcing your company’s call center functions, even if you only have a small to middle-sized business, is still the right decision to make. Outsourcing often helps smaller firms improve productivity and efficiency, lower costs, and increase profits at the same time. But achieving your outsourcing objectives will greatly depend on how you’ve planned your outsourcing strategy. How to Design an Effective Call Center Business Outsourcing Plan Consider the following steps when mapping out your call center strategy. Pros and Cons of Call Center Outsourcing How will your company benefit from call center outsourcing? Are there any possible disadvantages and if so, is there a way to address them? Does call center outsourcing make a perfect fit with your company’s vision and mission? It’s not enough for call center outsourcing to reduce your costs. It has to be a decision that will help you attain your objectives as well. Is it? Resource Evaluation What exactly will you outsource? If you already have the necessary technology, facilities, and equipment to run a call center, perhaps you only have to outsource your call center’s labor force. But it could also be the other way around. You have a lot of professionals in your employment roster but you lack the requisite hardware needs to run an effective call center. Performance Evaluation Consider how your company is presently faring. Take note of the overall performance of the business and how each department of your company is doing. Which departments will be directly affected once you push through with your outsourcing plans? How about the company’s overall performance? How much do you expect your outsourcing plans to affect it? You need to be aware of how exactly your company is doing prior to your outsourcing plans. The knowledge will subsequently help you determine whether your outsourcing plans were able to achieve the desired results or not. Nature of Call Center Function Some companies divide their call center functions according to department. There may be a different call center to handle sales-related calls while there’s another call center tasked to handle customer and technical support. Do you need to outsource all of them? Perhaps one of them is your core competency and is better left in your capable hands. Also, call centers are not always human-operated. There are also call centers that are completely automated. Which of them does your company need best? Consider its rate of success, how you expect your market to receive them, and whether or not it could negatively affect your company’s overall performance. Automated call center operations are efficient, objective, and verifiable but they aren’t ideal when handling complicated and unusual cases. Human-operated call center operations are highly flexible but they require competent management in order to continue providing above par performance. Writing Your Call Center Business Outsourcing Plan Be as specific as you can be when writing your call center business outsourcing plan. After all, you are staking your business’s reputation on a third party’s ability to satisfy your market. But of course, you should also be prepared to reasonably negotiate with BPO vendors until you reach a mutually satisfying agreement. Choosing Your BPO Vendor The ideal BPO vendor is one with considerable experience and expertise in the field you’re in. The best BPO vendor may still not be the ideal partner if they’re best known for assisting construction firms and you own a fashion retail company.
Are Your Business Hands Tied? Try BPO! So, you still do the nitty-gritty details of your business process in-house? Still bugged down with paper works and monitoring of mundane tasks and processes? Still wishing you could use the time spent on these routinary tasks on something more creative or productive? Then maybe it’s time you try BPO! BPO? What the heck is that? BPO is the common term, or acronym, for Business Process Outsourcing. By outsourcing, it means getting an outside business entity to do your job. Well, not really your job but some of your business processes, hence the name business process outsourcing. Sounds crazy? Well, think again. Some people may think that it is more expensive getting services from an outside source when you have an entire department to work on a particular task. But that is the thing-you don’t really need to keep paying an entire department, paying them benefits and such, because you can outsource the process from staff abroad where the cost of salaries are much, much lower than your country’s minimum wage as prescribed by the law. Now, don’t you think that is ingenious? You have to admit it is! In business process outsourcing, the management of a particular business process like marketing, or accounting, is delegated to a supplier or third party that specializes in that particular process. A lot of companies do this because these BPO companies are better equipped with experts and technology so they can finish the process faster, and more efficiently. This way of doing business, allows the company more time and elbow room to focus on its core business processes. Examples of business processes that are most commonly outsourced are call centers for customer services, IT help desk services, technical support services, telemarketing services; HR processing solutions; procurement solutions; finance and administration solutions; billing services; insurance processing services; knowledge and information services; mortgage processing services; handwriting services; marketing tools and internet marketing services; proofreading & editing services; writing and translation services; web design and development; animation and multimedia; business consulting and a whole lot more! Basically, every business process can be outsourced. It only depends on the company how much of the business process it is willing to delegate to a third party. Trust and confidence are not something earned overnight. However, there are a lot of proven and tested business process outsourcing companies out there that can help your company out. You just have to do your own research and analysis as to which provides the best and which suits your business best. Of course, it still dependent on your company’s needs and goals in the business arena. And it depends on how far you want to take your company and how much you are willing to risk for it. What business process companies boast of is the quality work that is done in lesser amount of time. Their expert officers know just what to do to deliver you the best service ever. This is what they do-providing the best service or else, they wouldn’t have any business at all. They recognize the importance of time. In every business endeavor, time and timing is of the utmost essence. Time is money. Hence, wasted time is wasted money. With BPO, companies can save more time and utilize those extra times to other more important tasks and business process.
Saudi Arabia: The New BPO Kingdom The Kingdom of Saudi Arabia is fast becoming home to a number of business process outsourcing companies from all over the world. The principle of contracting services for noncore operations from an outside source has been readily accepted by a lot of companies in Saudi Arabia. More and more companies have adapted to this new business trend. Most of Saudi Arabia’s biggest business groups capitalize on the very convenient Business Process Outsourcing services. This trend has been quickly accepted as the norm in various industries in the country. The industries of banking, consumer goods companies, insurance companies and telecommunications companies are already using outsourced call center services for their marketing, collection and other department needs. Majority of companies in Saudi Arabia have already outsourced their customer service department. And the IT based customer service is the first sector that has utilized the convenience of outsourcing services from the onset of business process outsourcing trend in Saudi Arabia. Lately, business process outsourcing companies from abroad have started proliferating in the Kingdom. More and more BPO companies are recognizing the viability of Saudi Arabia as a great location for business process outsourcing services. The emergence of a lot of business process outsourcing and call center companies benefited many people in the nation, locals and overseas workers alike, because it generated a lot of job vacancies. The jobs ranges from customer service executive, to customer representatives, call center associate, BPO executive, to telemarketer. One of the reasons why more and more BPO companies are putting up their business in Saudi Arabia is that India-one of the most lucrative location for business process outsourcing companies-is becoming more expensive with the increasing wage rate and attrition rates. For this reason, BPO companies are seeking other locales for their outsourcing operations. Other regions that are potential locations for BPO companies are the Eastern Europe, Southeast Asia and Latin America. However, it is North Africa and Middle East (including the Kingdom of Saudi Arabia), which are neck to neck in the competition for the housing these BPO companies and their service centers, sales staff and technical support staff. Another reason for Saudi Arabia’s allure to business process outsourcing companies is its multi-lingual labor force and its very favorable time zone, which allow the companies to operate more efficiently and provide better service to clients. Other companies are also attracted for its conduciveness for business expansion and oil-related investment opportunities. The healthy flow of income in the kingdom is just hard to resist. Saudi Arabia’s market, which is estimate to be worth around $100m, is even expected to grow annually at a compound rate in the next few years. Few of the companies that have established their businesses in the Kingdom of Saudi Arabia include AllRiyadhJobs. com, Hiring Solutions, Riadaa Services Company and even India’s Wipro Ltd. Recognizing the great potential for economic growth with the boom of business process outsourcing industry, the Arabian government is showing efforts of diversifying and freeing up their economy. The government is now very open to foreign investors who want to tap into their local market. The dynamic sector of business process outsourcing is beginning to play a central part in building the kingdom’s economic growth, penetrating more and more business. However, there remains the challenge of political issues causing instability and the deep-seated bureaucracy in the region. But with the way things are going, it’s apparent that foreign companies believe that it is worth taking the risk, making Saudi Arabia the new Kingdom of BPO companies.
Maintaining Quality Of Service When Business Outsourcing When you have poorly defined your contract with a business outsourcing company, the quality of the project may suffer severely. There are many things you can do to verify the project maintains the expected quality when you are using a company other than yours. When you define the objectives for the project you want completed they need to be defined clearly and everyone needs to acknowledge and sign off that they agree to them. You should not forget anything. Being too picky is better than not being specific enough. By forgetting certain things and not specifying them you are opening a door for poor work to be done. When this happens, you cannot request it be changed and done a different way because it was not specified in the contract. What will happen, is that you will have to pay additional money to have things done the way you want because you didn’t properly specify in the contract. One person should not write the specifications for the project. Projects need to be written by everyone who will be involved and affected by the project. You need to be sure you don’t miss anything that might cause poor quality with the project. If you need to research equipment and how things are properly done then you should. Many people can be affected by poor quality in a project such as your employees who are using the equipment. However, shareholders and stakeholders also have a vested interest that the money being spent on an outsourced project is spent well. You don’t want to be out of a job because you were not clear about how the project needed to be done and now you have a completed project but it makes your customers very unhappy.
Communications Problems With Business Outsourcing If you are looking to save money and thinking about using a business outsourcing company for your telemarketing or your technical support needs, you must consider the communication issues that might arise with outsourcing. Many times when people call a customer service or call center for assistance with their account information for a company they complain because there is a language barrier and it is hard to understand what the people are saying. If you are considering hiring a company for your outsourcing needs, you should ensure that the customer service representative’s first spoken language is of the customers who will be calling. If it is not, it should be guaranteed to you that the representatives will be able to speak your language well enough to understand them. One way to guarantee the language barrier will not exist with the customer service representatives from the outsourcing company you are hiring is for you and other team members to make phone calls to the representatives who will be representing you. This way, you and your team members can speak to the individuals and verify if their spoken language is good enough for your customers. Most communications problems with call centers and customer service representatives occur from using offshore outsourcing groups. Business outsourcing can save your company a lot of money. However, it is for you to decide which is more important, your customer satisfaction with your customer service and support or the amount of money you are saving through your outsourcing endeavors. You may find your customer count goes down once you begin outsourcing your customer service needs.
BPO Companies-the Latest Business Trend The world of business has dramatically changed and continues to rapidly change every single day. What we know today can only last for a few months or years, if we are lucky. What we know yesterday might as well be considered a thing of the past tomorrow. That is how fast the business world is changing. So companies all over the globe have to learn to adapt and do it fast. Before, the business trend is to be a jack-of-all-trades. To be successful, a business has to have everything a client needs in one roof-a one-stop shop. And companies of olden times try to do just that. Hire all the kinds of personnel they need for every department in their company. However, that is a thing of the past now. The economic market today requires specialization. Consumers want to have every product or service tailored to their particular need. Consumers don’t want generic products anymore. They want special treatment and the best of quality service they can get. So, having everything under a company’s roof does not seem useful anymore. Keeping all business processes under one roof now proves not only to be costly but impractical as well. This is because monitoring each and every one of them to ensure the best quality is served and tailored to every client need has become tedious and almost impossible. Keeping experts in-house is also proved to be expensive in the long run. The need for specialization and focus on the company’s real core business has spun the trend of hiring Business Process Outsourcing companies, or what is more popularly known as BPO. Business process outsourcing companies have now sprouted and proliferated in countries where labor cost is not so expensive, such as China, India and the Philippines, and lately, the Middle East. BPO companies in these countries and region provide services to bigger, more often multi-national, companies that want to focus on their core business processes so they just delegate generic tasks, or processes that are of lesser importance, to outside provider or supplier of services. The philosophy of companies these days is to "...do what they do best and outsource the rest." And it is a very sensible philosophy at that. And more and more companies are catching on it. The list of services that are most commonly outsourced include, HR solutions, Accounting and Financial Services, Customer Care Services, Call Centers, IT Help Desk Services, Marketing tools and solutions, and other nitty-gritty details that most companies want to be free of. These are necessary business processes-yes, that is true. However, companies now realize that it is more practical to delegate these tasks and focus on sales or production, or whatever their company is all about. In India and Philippines, more and more BPO companies are establishing business centers in their territories, capitalizing on the affordable workforce cost and the abundant supply of highly-trained trained professionals. The Middle East has also become one of the newest hub for BPO companies for its multi-lingual populace and its strategic location, giving it a favorable time zone. Added attraction for this region is the possibilities for oil investments and business expansion opportunities. In India, you can find the following successful business process outsourcing companies: Accenture; Convergys; HCL BPO; Genpact; GE India; IBM Daksh; TCS BPO; Transworks; Wipro BPO; and WNS Global Services. Meanwhile, the Philippines’ list of BPO companies includes companies from the United Kingdom, the United States and Japan.
Business Outsourcing Contracts When you consider business outsourcing it is important to draw up a contractual agreement for you and the outsourcing company to sign. This agreement will define the project in full including items such as the time line, budget, people, and more. When you decide on a business for outsourcing it is important to draw up a contract. The contract will spell out all of your expectations to the project and what the role of the company and their employees will be. This gives you the opportunity to hold the company accountable for the work you are asking to be done. When you sign a contractual agreement for business outsourcing the contract will specify the time frame of the project and set a timeline. The timeline will set milestones during the project and specify each with an expected completion date. In addition, many contractual agreements will specify percentages of payment according to the completion of each set milestone. If the completion or the milestone is not met on the expected date, a stipulation may be defined on the contractual agreement also. The contract signed between you and a business outsourcing company will define the budget of the project and what the company has agreed to do the project for. If the company has underbid the project, then they must pay the excess funds to complete the project. It is not your responsibility if the company underbids and the contract should be clear on this. This includes the amount of hours it takes for completion of the project. If the company promised the project would be completed in a certain amount of hours and it is not then their staff will be working for free until the project is completed. You must sign a contractual agreement along with the business outsourcing company you are hiring. This is to protect the company and the funds you have for the project.
Dangers Of Business Outsourcing Business outsourcing is becoming more and more popular each day. However, you need to be careful when you do decide to hire an outside company for your project. Some of the problems that may occur is turnover, knowledge, and attitude problems. These can be difficult to handle. When you hire a business outsourcing company to provide you staff on a temporary basis problems often occur with turnover rates. Outsourcing companies have a higher turnover rate than most companies and you need to be prepared if you tend to go through employees quickly. When turnover occurs you have to continue to train them. If you need to pull an employee from their current workload to train a new employee then this can create a problem with that employee getting behind. Turnover can also cause problems with knowledge of the company. When you have to retrain employees about policies and procedures it might take some time for a new employee to get the hang of things. Most employers believe it takes approximately two weeks for a new employee to get settled in. However, your customer service may take a hit and you might have customers complaining about your service. Another thing you need to think about with outsourcing is that the employee is not working for you. Many temporary employees want a full-time job with the company they are working for because they need the benefits. However, when an employee is not really working for you then they don’t take on the mission and the vision of the company and believe in instilling it. Often times, you might see outsourced employees not care about the company like they should. You should ensure all outsourced employees will hold true to the company although they are not really your employee.
Top Six Benefits of Business Outsourcing Small businesses can benefit from business outsourcing. Rather focusing exclusively on the costs of outsourcing certain activities of your business, you should also consider the benefits such a change would bring. Cost Reduction Business outsourcing can help lower your business’s expenses. Let’s say you have clothing business. The equipment you’re using is not the best in the line, and it contributes to increasing your production costs. But what if you simply outsource your equipment needs instead? Would you be able to lower your production costs? Labor costs can be reduced as well. Rather than hiring temporary or project-based employees, why not simply outsource your human resource needs to BPO vendors who know exactly what they’re doing? Working with an experienced firm will ensure that you don’t have to waste time going through dozens of applicants just to find a perfect fit. No Waste of Time Business outsourcing let you take on projects right away and start on them immediately. Rather than spending time amassing your resources, you can simply approach a BPO vendor and they’ll provide you with all the resources you need for a fixed cost. The BPO vendor will take care of everything, from screening applicants to training them for their new job. All you need to do is simply give the BPO vendor an idea of what your needs are. Improved Efficiency Consider how your business operates. Is marketing research and development or product distribution slowing you down? If none of them make up your company’s core competencies then nothing is stopping you from outsourcing them. By contracting such functions to a trusted third party, your company’s efficiency is improved two-fold: you have more time to focus on more important activities while contracted activities are performed at an even more efficient rate since they have greater resources and expertise than you do in those fields. Act Big Small businesses are David and the big scary corporations are Goliath. But David managed to beat Goliath, didn’t he? And all he had was a sling. In the world of business, BPO vendors are the ones that could provide you with the exact kind of sling you need to defeat your competitors. With the help of business outsourcing, you’ll be able to level the playing field and maybe even face down the competition in time. Lower Risk Almost everything in business comes with a certain degree of risk. Of course, the lower the risk, the better your position is. Business outsourcing can reduce the risk you’re taking in various ways. When you’re entering a new market, you can let a local BPO firm handle marketing research and development for you and you’ll be privy to insider’s knowledge. Building Your Reputation You’ve graduated from a culinary school with flying honors and you bake the best brownies in town. You want to go into business but you don’t know how to package and distribute your product effectively. Rather than force your customers to tolerate your bungling efforts, why not outsource your needs to a firm with the kind of expertise that will impress your customers? By outsourcing your needs to experts, you’re able to quickly build a name for yourself and be known not just for having the best brownies but ones that come in an excellent package, too! These are not the only benefits of business outsourcing, but they’ll more than do for a start, don’t they?
Benefits Of A Request For Proposal When Business Outsourcing A Request for Proposal (RFP) is something you write when you are looking for an outsourcing company to complete a project for you. There are many benefits to writing an RFP you should know before you begin. The primary purpose of an RFP is to inform suppliers that your company is looking for business outsourcing and it encourages these companies to make their best effort in meeting your requirements. In an RFP for business outsourcing you will be specific to the products you would like to use in your project. For instance, if you want to upgrade your file servers and you would like to use IBM Blade servers then you should specify this requirement. The more specific you are with your requirements and your budget, the better bids you will receive. An RFP also forces suppliers to be realistic and factual identify your requirements when they come back with an offer on your RFP. It also allows for a larger response to your request for business outsourcing. It also gives you the opportunity to let the suppliers know that the process of selection is competitive. A closed bid selection is the best way to go when you are looking at suppliers bids on your project. This way, it doesn’t allow a business outsourcing company to underbid another company for the project. You should never tell a company what another company bid on the project and give them the opportunity. The entire selection process should be fair to all of the companies. The best way to find a business outsourcing company is to write a Request for Proposal for the project and include detailed requirements for the project.
How Business Process Outsourcing Fares in India Today The act of contracting business process functions to a third party, more commonly known as business process outsourcing or BPO is an increasingly popular trend. Today, many of the world’s biggest companies have outsourced some of their activities, and most of them find their way to the cities of India. Business Process Outsourcing in India The BPO industry in India continues to grow. Now known as "the back office of the world", India is home to outsourcing firms of numerous Fortune 500 companies. In the 1980’s, a number of European airlines had established back offices in India, and this arguably built the roots of what’s now one of the world’s most active business process outsourcing industries. Other companies soon followed. In the same decade, American Express brought over its Japan-Asia Pacific branch into New Delhi. In the 1990’s, General Electrics also came to set up its back office in India. Other well-known corporations that had outsourced their various business needs to India include Motorola, Standards Chartered Bank, Yahoo, Dell, Cisco, and Delta Air Lines. Cities with high BPO activity include New Delhi, the country’s capital, Chennai, and Bengaluru. Due to increasing infrastructure costs however, other cities are slowly being developed to match the resources provided by Tier I cities. Tier II cities include Jaipur, Mysore, and Kochi. Advantages of Business Outsourcing in India There are various benefits that companies can enjoy if they choose to outsource several of their activities to India. Human Resources Labor is comparatively cheaper in India than in Western regions like the United States and key cities in Europe. The Indian labor force is also well-educated and with varying skills and talents. Neither does it hurt that Indians had long been educated to speak English. Pioneers in Software Development India is one of the world’s pioneers in software development. Multinational IT firms wouldn’t find it terribly difficult to procure competent resources for their needs in India. Technology and Infrastructure The country’s government is very much aware of the economic benefits offered by the growing BPO industry. As such, they have been more than willing in recent years to improve infrastructure and technology in order to make their cities well-equipped to handle just about any call center need of multinational companies. Problems Encountered by the Business Process Outsourcing Industry in India Of course, the BPO industry, just like other industries, isn’t free from problems. One major problem is the high rate of attrition. Many BPO firms are keen on addressing the high rate of attrition in their operations. There are various reasons why many employees are choosing to leave their relatively high-paid jobs. Many jobs in the BPO sector require employees to work at night and while they are certainly well-compensated for their efforts, this doesn’t negate the fact that they’d have to stay up late for work and suffer possible health problems due to their unusual work schedule. Stress and pressure during work isn’t something to scoff at either, and this is another reason why people prefer to leave their jobs in the BPO industry. Business Process Outsourcing in India Today Recent news have predicted India to generate approximately 8 million jobs over the next decade from the BPO industry alone. One-fourth of this figure will be immediately taken up by Tier II and III cities in India. Today, ninety percent of the BPO industry’s labor force is situated in the country’s top seven BPO and ITO cities. This however has produced problems like oversubscribed universities, rising infrastructure costs, and overburdened roads. It is the country’s hope that Tier II and III cities will soon be able to provide the requisite resources so as not to put the growth opportunity in BPO to waste.