Outsourcing Ins...'s  Instablog

Without a doubt, outsourcing is very popular among businesses because of the benefits that one can gain from it. Outsourcing companies have been very active in seeking new clients as they take advantage of the situation where the benefits of outsourcing is already out there in the open. As both non-voice and voice solutions gain popularity in different key outsourcing destinations, there is a question that enters the minds of those who have been monitoring the outsourcing industry; the question being "Do businesses really get to maximize their outsourcing partnership with a strategic solutions provider?"

We have previously written an article entitled "How to Maximize Your Outsourcing Partnership" that provides tips on how a business can move past the barriers that could be encountered when engaging with an outsourcing partner. The article points out three key points: 1.) Keep it Clear, 2.) Set the Bar, and lastly 3.) Be Hands-on. We may have overlooked to include one other key point in the previous article, which is to seek the services of an outsourcing solutions provider that is trusted and preferred by many. Having a trusted outsourcing partner by your side would enable you to drive your business towards your goal without having to be troubled by the demands of your operations team.

There was study that was conducted by Accenture (NYSE:ACN) during the months of September and October in the previous year that suggests only 20 percent of the 263 buyers that was surveyed for the study is able to recognize the full value of their partnership with a business process outsourcing company. This is not an unusual case as most companies are only focused on cost reductions and are unaware of the necessary management and transition processes. In the study, 8 characteristics have been pointed out by Accenture that are common among the 20 percent who have already realized the full potential that is brought by outsourcing. Among these would be focusing on the benefits beyond cost reductions. Outsourcing could bring to your business a wide range of benefitsthat you can get when you partner with a solutions provider. Another is that high performers in the business process outsourcing industry have already established and adopted an approach towards management and governance processes. Although it is the objective of the partnership established between parties to get the job done, there are still key areas that need to be maintained in order for them to look forward to that contract renewal.

Outsourcing may appear to be quite simple; it is actually simple but only if you have been doing it for a long time already. There is a lot to learn about outsourcing that does not come in a manual which is why it is important for a business to first assess their needs and their potential partners. Outsourcing companies that are serious and dedicated about what they do would definitely help you along the way, allowing you to fully realize the value of outsourcing and create a sound outsourcing environment for you.

Author: Jamee C.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

The outsourcing industry has been widespread across the globe and it seems that there is no stopping this industry that has helped businesses to get things done at an amount that is not heavy on the pocket. One of the popular services that businesses seek within the outsourcing industry is the solutions offered by contact center services providers. Given the success of such service, it is unlikely for the industry to not have detractors.

There have been companies and key individuals or groups who are against the idea of outsourcing. We cannot change the fact that there will always be two sides to everything - if there are those who are in favor of outsourcing, there will definitely be a group that is against it. In the past, there were news and articles that point out that the business process outsourcing industry and call center outsourcing's fame and popularity is bound to see a decline in 2011 as the market for such service could be saturated.

There were reports in both the past and present that contact center solutions providers and major companies have been laying off a number of their call center agents. Just recently, there was an announcement by T-Mobile that there will be a total of seven call centers that will be affected by their decision to let go of around 1,900 of their employees. The driving factor for this decision was the "restructuring following the failure of AT&T's (NYSE:T) proposed acquisition of the smaller operator."

Another example that is similar to that of T-Mobile's is Home Depot (NYSE:HD). Home Depot was reported by The Advocate to conduct a lay off that would affect 225 customer-support and distribution-facility workers over the next 18 months. This announcement follows a previous announcement that it will phase out some 400 call center agents in their Baton Rouge facility, which now amounts to 625 employees to be affected by Home Depot's lay off announcement.

There are reasons as to why such layoffs happen, but despite situations like these, there are still other areas where the industry bounces back. Also, when such situations happen, it does not necessarily mean that the demand for such type of service are moving downwards.

According to the statistics to support the business process outsourcing industry published by the Department of Science and Technology (DOST) that was released in January 2012, it is highly unlikely for the outsourcing fame and popularity to see an end. In the report, it says that in 2011, the IT-BPO industry was able to generate around 640,000 direct jobs and was able to contribute $11B in export revenues. With such strong figures to support the industry, key outsourcing solutions providers and associations are now more confident to take on other areas where there could possibly be a rich market for outsourcing. "We are the world's number one call center provider and we intend to attain market leadership in the United Kingdom and Australia as well," says DOST Information and Communications Technology Office (ICTO) Deputy Executive Director Alejandro Melchor.

Most people, especially industry experts, are anticipating the further growth of the industry as they see that the demand for such service is moving at a stable pace.

Author: Jamee C.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

A fully functional car needs to be checked every now and then to ensure that all parts are working properly. This check-up needed to be done on a regular basis where an annual maintenance would be definitely advised because despite the pleasant exterior of a car, there may be a part within the vehicle that is encountering a problem which could lead to a more expensive and worse problem. For outsourcing companies, there should also be a check-up of the similar kind. This is essential so as to ensure that operational processes and administrative tasks are efficient and fully functional.

So what are the key areas that need to be reviewed and checked on a regular basis? See the list below.

Human Resources

It is known to most, especially for key industry players, that one of the main issues within the outsourcing industry is the attrition rate. For such high demands in outsourcing projects and with how the attrition rate is going in the industry, each company's Human Resource department must keep in touch with the operations personnel to know whether additional people or replacements are needed. It is also advisable for companies to keep a healthy pool of talented professionals/applicants so as to avoid disruption in the flow of the working project.

Information Technology (IT)

There has been news that there were instances of internet security breach for some companies, and you do not want this to happen to your company as this will cost you a lot of your budget. In order to avoid problems like this, it is very important to ensure that your security software is updated and that there are no loopholes when it comes to security. It is also highly advisable for outsourcing companies to secure certifications from organizations to ensure that you are compliant of international standards. This will help you keep up with the updates.

Operations

Most outsourcing companies handle projects that are grounded on quality and meeting deadlines. It is important to conduct regular evaluation to see if the analysts or agents are hitting their quotas and their deliverables because this part is a major contributing factor in the satisfaction level of clients. It is best if you would be able to spot whether the current process is not as efficient as you have perceived it because then you would be able to make the necessary changes and construct a work process that will enable you to maximize the potential of your team.

It is definitely inevitable for companies to experience some inefficiencies. However, what is important is for them to be able to address these inefficiencies and to be able to prevent such from happening again. There are different strategies that can be used in order to address this but the foremost in the list would be to conduct a regular evaluation.

There are still other areas that must be evaluated regularly as every department is vital to the outsourcing company's success but the three areas mentioned above are what we feel that should be the priority areas. What are the top 3 areas that you feel should be prioritized? Let us know in the comments section below!

Author: Jamee C.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.