Offshore outsourcing services may continue to be associated with conventional concepts such as cost-savings, but if we analyze properly, we can easily see that the applicability of such concepts has witnessed constant erosion over the past few years. One of the main reasons for that has been the growing awareness that outsourcing services are not just a means to reduce operational costs. And that they play a more important role, i.e. acting as a vital link between businesses and their present and potential customers. This becomes evident when we look at recent customer survey results that clearly indicate that around 70% of customers move over to a new product or service if they are dissatisfied with the customer support services offered by their existing product manufacturer or service provider.

This is why businesses nowadays are not satisfied with mere cost savings. They expect outsourcing firms to deliver much more, focusing increasingly on maximizing customer satisfaction levels. In this context, it would be worth mentioning that outsourcing firms are living up to the expectations. It’s because they too know that until and unless efforts are made to improve customer satisfaction, sustaining growth and development will not be possible. Offshore outsourcing services providers that have already realized the importance of customer-oriented services are presently witnessing great demand for their offered BPO services.

The other prominent reason is that most of these small & medium sized outsourcing firms have a greater appetite for growth and development, something that naturally impels them to provide the best possible outsourcing services to their clients. Since they are well aware that future growth depends a lot on client satisfaction levels, they never compromise on the quality and efficiency of offered services. They work hard to ensure that everything gets done exactly as the client has stipulated. And all of these are reason enough for choosing small & medium sized offshore outsourcing services providers

Newer demands focus on the need to achieve maximum customer satisfaction, because it has become common knowledge that views and opinions of customers in relation to a product or service depends a lot on the quality of offered customer support services. With recent reports indicating that around 70% of customers change their preferences based on customer support services, achieving the demanded customer satisfaction levels has become all the more important for outsourcing firms.

As customers become more concerned about the quality of services being offered to them, it would be correct to assume that the pace of moving from cost-centric to customer-centric will increase dramatically in the near future. When that happens, it will benefit both clients and business process outsourcing firms.

On the other hand, small & medium sized business process outsourcing firms are quite different because they have the much-needed flexibility, required for customizing service delivery models, making the best possible use of available resources, and carrying out infrastructural upgrades, all in line with the specific needs and requirements of the client. Clients are thus able to derive higher levels of quality and efficiency by choosing services provided by small and medium sized business process outsourcing firms.

Outsourcing is no longer a dirty word and seldom does you hear horror stories about outsourcing. Outsourcing is increasingly seen as global sourcing or global delivery. Major corporations are increasingly setting up captive units that are owned and operated by them. The employees working for such captive units are considered as employees of the parent company or its offshore subsidiary.

Companies outsourcing their various business processes and other administrative functions have consistently shown better financial performance and increased shareholder value. Substantial cost savings sometimes as high as 50% is achieved. Almost 30-35% of all IT services are being delivered from offshore centers.

Outsourcing will remain recession resistant. Recent trouble in the world financial markets will slow down the flow of outsourcing in the financial markets sector in the short term. Currency appreciation in Canada will make it less attractive as a near-shore destination, thus driving more business to countries like India.

Newer functions such as legal and other knowledge processes will be the drivers of the next wave of outsourcing.

With the current weak economic indicators, more companies will be forced to look at outsourcing favorably to improve their bottom line.

Fortunately however, and also because of the hard work put in by the industry, stagnation has not occurred. The Indian BPO industry continues to grow at a phenomenal rate, expected to reach a staggering $50 Billion worth of business by the year 2012, from the current $11 Billion. These figures are enough to prove that the high attrition rates are nothing but a specific characteristic of the BPO industry, just like other industries have their own. As such, business process outsourcing firms need to concentrate more on delivering quality and passing on the cost-benefits rather than wasting precious time and effort on controlling the inevitable – high attrition rates.

]]> http://businessprocessoutsourcingservices.wordpress.com/2008/04/30/high-attrition-rates-%e2%80%93-not-exactly-a-problem-for-the-business-process-outsourcing-industry/feed/ 0 businessprocessoutsourcingservices http://businessprocessoutsourcingservices.wordpress.com/2008/04/30/business-process-outsourcing-industry-to-create-more-jobs/ http://businessprocessoutsourcingservices.wordpress.com/2008/04/30/business-process-outsourcing-industry-to-create-more-jobs/#comments Wed, 30 Apr 2008 10:10:21 +0000 businessprocessoutsourcingservices http://businessprocessoutsourcingservices.wordpress.com/?p=19 ]]> A recent report, released jointly by NASSCOM and Mckinsey, indicates that the business process outsourcing industry will grow at least five-fold by the year 2012. Currently generating revenues in excess of $11 Billion, the report suggests that the industry will cross the $50 Billion mark by the year 2012. The report also indicates that such phenomenal growth will in turn create immense job opportunities, something that will not only benefit the local economy but will also provide businesses a stable environment to carry out outsourcing projects.

There may be several reasons for this phenomenal growth, but if were to identify the most prominent ones, it would certainly include the new measure taken by the various big players in the BPO industry, such as employee welfare, competitive wages and smaller facilities will promote these outsourcing jobs in the year ahead.

Political support as is necessary for the growth of any industry may still be limited, but the good thing is that things have started moving in the right direction. With the government realizing the large revenue and employment generated through these outsourcing jobs, a considerable increase in political support has been realized. Moreover, with SMEs (Small & Medium Enterprises) making their preferences felt for outsourcing, more jobs are likely to be created by the business process outsourcing industry in the coming years.

The full potential of the Indian talent pool has been realized only recently. These days, India is much more than a source for a fluent, English-speaking workforce. Companies in the US have began tapping the readily available talent and skills, thereby promoting growth and adding to the dynamism of the Indian BPO industry. India not only possesses some great untapped talent when it comes to the BPO industry, but the Indian labor force is up to five to six times less expensive than their counterparts in the US. Presently, the majority of outsourcing business comes from the US, Canada and Europe.

Recently there may have been issues such as competition from other Asian countries such as Korea, Taiwan and Singapore, but that should not be a cause for concern because the strengths of the Indian BPO industry are not only its cost-effectiveness, but also its quality and efficiency. It will take many more years for competitors to develop and sustain these essential competencies. This is why the business process outsourcing industry in India is currently the preferred choice for businesses worldwide.

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A huge English speaking population and affordable human resource procurement rates may be the natural advantages available to all outsourcing firms located in India, but when it comes to being the best business process outsourcing services provider, way above the rest in terms of quality and cost-effectiveness, it can be said that it’s none other than technology that ultimately makes all the difference. So how exactly does technology help in making it to the top? Well, there are actually many ways in which technology helps outsourcing firms to achieve the distinction of being the best in the industry. To make it more clear, some of these reasons have been discussed in the following paragraphs.

The first thing technology does is that it streamlines existing customer service processes and channels in an offshore outsourcing company. And when this is achieved, it becomes easier for customer service professionals to improve the quality of deliverables, which can be everything from a phone call to an email help request, online chat, document scanning services, financial services, accounting services, back office services, payroll processing services, web promotion services, content development services etc. When quality is improved, it automatically increases client satisfaction levels, which in turn brings in more business for the outsourcing company. It also results in referrals, a proven method for adding new clients and increasing the annual sales.

Newer technology has almost always made things easier for employees and this is exactly what has happened for those who work in the BPO India industry. BPO professionals have gained a lot because now they have to put in a lot less effort for achieving the same results that earlier took them a lot more time and effort. This is something that keeps them motivated and more committed towards achieving their predefined goals and targets. It also helps in improving the surrounding work environment, something that automatically boosts employee morale. This in turn makes it easier for outsourcing firms to satisfy employee needs and expectations, thereby reducing attrition levels.

Introduction of advanced technological tools and systems in the Indian call center industry has also helped in augmenting operational efficiencies of outsourcing firms. When this is achieved, it automatically results in faster turnaround times and faster completion of ongoing outsourcing projects. This implies that by using advanced technology tools and systems, outsourcing firms can successfully execute more projects in a given financial year. This is necessary because the long-term success of any business enterprise depends on its ability to keep increasing its growth rate, year after year.

As in the past, it is likely that technology will continue to play an important role in determining the success of outsourcing firms in the future. In the near future, only those business process outsourcing services providers who are quick to embrace the latest technological tools and systems will be able to deliver world-class outsourcing services.

Well, questions like these have certainly started popping up, probably due to the subprime crisis that some in the outsourcing industry say can adversely affect business process outsourcing services . However, this is highly unlikely simply because the more businesses feel the heat of the ongoing crisis, the more they will be impelled to reduce costs and improve efficiencies, something that can only be derived through outsourcing non-core business processes.

It’s not that competition has not increased in the offshore outsourcing industry; it certainly has due to the emergence of other low-cost outsourcing destinations such as Philippines, Vietnam, China, Brazil, Argentina, Srilanka, Brazil and others. However, that hardly proves anything simply because competition exists in every industry and it never implies that it will lead to the downfall of a particular sector of the industry.

In the same way, increasing competition in the outsourcing industry would never imply that it will lead to the downfall of the BPO India industry that is currently the market leader. It can imply an increase in the amount of effort put in by the industry, but apart from that it does not imply anything else in the real sense.

The call center India industry is well aware of this and this is why it is still following the same aggressive approach as earlier. Expecting more demand in the future, the industry is currently in the process of upgrading its infrastructure and reassessing manpower needs and requirements. This is proof enough of things to come because if the industry was not too sure about emerging trends, it would never have gone for infrastructure upgrades and fresh recruitments.

As such, experts who often claim that the days are over for the outsourcing industry in India, need to do a rethink of their preconceived notions and try to face the reality. The reality is that the business process outsourcing services industry in India has always outperformed popular expectations and is most likely to continue doing the same in the future as well.

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