Is Offshore Outsourcing An
Effective Retaliation to the ROI ( Return of Investment ) Grind
Down?
Amidst astringing market competition and
consumers becoming more and more discriminating, product demands
decrease and profits grow less. What can merchants do to sustain
their business, offer competitive pricing, and still come up
with considerable gain? A counteraction is available, and
necessary, look upon offshore outsourcing.
Traditionally, businessmen turned to expensive ad campaigns and
other marketing strategies that do not necessarily guarantee
solid return of investment. Today, the effecting power of the
Internet has given rise to the ability to reduce staff, as well
as, production expenditure and pump- up company revenues. This
ability to apportion staff- intensive servicing functions to
lower- cost but equally capable offshore facilities hold a more
realistic, and greater promise in terms of better income
generation.
Misjudgment of Offshore Outsourcing
Like most anything on the leading edge, there are several issues
that needs to be acknowledged with regards to offshore
outsourcing.
� Is it Unpatriotic?
It has been implied that offshore outsourcing may become a
potential threat to the domestic employment of an advanced
country like America.
However, is it truly unpatriotic to want to safeguard a
business, preserve affordable rates, and still come up with
equitable company profits, and in doing so, provide much needed
benefits to less developed countries or global society as a
whole?
� The Language Barrier
Communication between peoples of different nations is greatly
challenging, if not at all impossible to manage in terms of
language.
Favorably though, there are emerging offshore outsourcing
service providers all over the world with a generous pool of
manpower who can communicate excellently in either British or
American English.
� Compromised Product Quality
The issue of weakening product quality broods over in
association with offshore outsourcing. Substandard operation and
inferior work force are among the reasons presented.
Arguably, these problems could also arise right in our very own
shores. In recent years, extensive efforts have been made to
resolve human resource and infrastructure
concerns in foreign countries. Nations like India and the
Philippines boast of globally accepted business park power
plants, redundant back- up generators, and highly skilled
professionals.
Remarkable Benefits
After addressing the misjudgments, it is fundamental to affirm
that more importantly, offshore outsourcing provides remarkable
benefits. Savings on all direct staffing costs- benefits, taxes,
office space, equipment, IT services and telecom constitute to a
20- 40 percent potential growth in revenues.
Another noteworthy factor is the advantage of working with
highly skilled, goal- oriented personnel who possess an
admirable work ethic and a high degree of commitment.
Moreover, offshore outsourcing enables a business to literally
operate 24/7, domestically from 8am to 5pm, and overseas from
5pm to 8am. This is due to the difference in time zones between
internal and external (offshore outsourcing) processing
functions.
Choosing a Partner
When the decision to employ offshore outsourcing is made, next
stop is choosing a provider.
There are fundamental qualifications for any offshore outsource
provider. First on the list is substantial first- hand
experience in the processing functions that will be apportioned
offshore.
These following inquests come after: Does this potential partner
have a local U.S. presence? Does it offer various offshore
locations? Does it have the facilities?
A local office ensures that the provider understands the
domestic trend of the market. In addition, it is there when
needed.
Culturally, certain processing functions are conducted more
appropriately in one country over another. As an example, the
Indian accent is thick while their counterparts in the
Philippines have subtle or no recognizable accent when speaking
English.
Without the facility to effectively perform the functions
required, a provider�s purpose is defeated.
Lastly, make a cautious study of a provider� s risk management
measures like financial capacity and compliance, reliable data
security and physical- plant safety including disaster recovery
plans.
The effective and tactical employment of offshore outsourcing
presents not only the opportunity for merchants to counter the
ROI grind down, but also an opportunity to sustain profit and
reach a bigger market share.
By Ms. Lelit Barrios
10 July 2007-BHI pro