Posted by Jenny-Lyne Cagadas on April 30, 2009
“The offshore outsourcing market will continue to grow nearly 20% annually through 2008…” -META Group October 2004
As predicted, the times have changed favorably for the field of outsourcing since the turn of the millennium. Amidst the rise and fall of the economy, outsourcing firms have managed to grow into profit-making and profit-giving empires. From a dark corner, it has broken out into the limelight, gaining an incredible amount of popularity in the business sector due to the fact that it promises commercial development for its clients, with minimal amount of stress. Outsourcing basically works with the concept, “service at your fingertips, delivered how you want it, where you want it, any time you want it.”
Indeed, there are many advantages in subscribing to outsourcing firms. For one, they allow global companies to avail of low-cost labor in other countries that only demand cheap tax payments. These countries are filled with personnel, gifted with the required skills, background and know-how in building and handling business processes. With them, clients have the advantage of saving on time and costs for hiring, training, and providing the necessary tools and work space for their employees, with the possibility of doubling their investment and gaining momentum in competing with rivaling businesses. A statistic has confirmed that companies get an average saving of 40% due to outsourcing. In addition to this, outsourcing allows clients to specialize on certain services to fit their business requirements. And in as much, with the use of a contract, customers can demand outputs that satisfy their standards, thereby, ensuring quality. Companies also gain the privilege of accessing avenues for innovation when there is limited supplementation in their own business backyard.
Sadly, there has been a lot of bad publicity lately. The risks in dealing with outsourcing, such as that opportunism, information asymmetry, language barriers, and lack of supplier expertise/resources/ability, have driven investors out the door. There are plenty of relatively negative feedbacks on outsourcing and they unfairly taint the whole industry. It must be understood that these risks are preventable through choosing the correct lines to tap. It’s easy to get excited over the idea, but interested parties should consciously scrutinize the characteristics of the helping hand they take into service.
With numerous outsourcing firms out there, it is difficult to distinguish which one is the best. So at the very least, choose an outsourcing firm that has an exceptional work history and pool of professionals. As business partners, ensure that the outsourcing firm you get operates in a mutually beneficial way and has your best interest at heart. That’s how you will get the best out of your outsourcing experience.
Posted by carisa on February 17, 2009
Dubbed these days as the “sunshine” industry, the once undervalued business, now amid the current global economic recession, has once again proved its unexpected might. Business Process Outsourcing has successfully generated $6 -billion revenue last year, and positively targeting $8 billion this year. In a bid to be one of the top outsourcing location in the world, representing the BPO sector, the Business Processing Association of the Philippines unveiled new programs to widen its path to get to the peak namely, language skills, competency assessment, scholarship programs and leadership training aimed to further develop local talents. But in an industry where strong partnership, collaboration of brilliant ideas and confidentiality are involved, there could be no shortcut to glory. Let’s trace the shadow of our outsourcing models. India’s case is much like the Philippines that, as an offshore partner, possesses the niche to be chosen as one good location by clients abroad. English-speaking workforce, pool of talents, and cultural flexibility still remain as constant criteria in the competition. What else do we need to work on? What other attractive offering to post? Maybe we might just have overlooked on a minor but blowing idea. How about offering an added value that goes beyond cost and fulfillment of a client’s business needs? Consider expertise, yes, it is a cutting-edge advantage that unfortunately others maybe offering but with a corresponding added premium. Would it be an uncommon innovation that stands alone aside from the commonly campaigned quality?
Posted by carisa on February 4, 2009
The current global economic trend incidentally pushes outsourcing in the Philippines into greater advantage. Why? Consider this primary reason. As the current global monetary medium rises, so too are the cost of services, operational expenses and other necessary cost brought about for outsourcing execution, consequently rise too. And for cost conscious businesses in the recession struck first world countries, this means a lot. For the Philippine Outsourcing Industry, this means life.
While we are aware of the domino-effect of the first world financial crisis to the third-world, such as the Philippines, as US media reports about massive layoff of most US workforce, will soon predictably be heard of most local firms, one potential industry to soar in the middle of the crisis would definitely be outsourcing. Notwithstanding the Philippine’s world-class Information Technology and Business Process competence, just among the viable reasons for outsourcing in the Philippine shores.
It would then be safe to say that the industry will head on to its positive path of emerging to be on top of Philippine’s economic indicator along with the consumer goods industry. So, gearing up for outsourcing business would be a better investment and diversifying to outsourcing industry could be a better option to existing entrepreneurs today.
Posted by anthony on February 2, 2009
Outsourcing is becoming more and more popular in today’s business environment. Most companies tend to outsource some of their work functions. It is a process in which the company or individual business man contracts another company to avail particular services. There are four basic types of outsourcing, wherein the categorization is based on the nature of work being outsourced.
The first type is Business Process Outsourcing (BPO) in which call center outsourcing, human resources outsourcing (HRO), finance and accounting outsourcing and claims processing outsourcing belong. The second is Information Technology Outsourcing (ITO). It includes IT services, technical support, software testing, and website management outsourcing. The third type is Software R&D or also known as software development outsourcing. Finally, Knowledge Process Outsourcing (KPO), is the type of outsourcing that includes reading X-Rays, performing investment research on stocks and bonds, handling the accounting functions for a business or executing engineering design project.
By looking at the benefits of Outsourcing, we can deduce that it is indeed helpful and a practical choice because of its cost-effectivity. You can gain access to knowledge pool that is not available inside your own company. You can also attain flexible capacity management in which you are enabled to flexibly manage the production capacity and staff as well. The Time Zone coverage that are set up 24/7/365 operation makes your business operation more efficient.
Posted by albert on December 11, 2008
Business Process Outsourcing is one of the techniques commonly used by Internet Business firm nowadays. What is BPO? BPO is the entrustment of certain business functions or processes to an external service provider. For instance, instead of having their own company design sports gear, exerting their own effort, they can hire another company to do the job for them.
Business process outsourcing enables entrepreneurs to find ways save time, effort and money for their company. In these instances they have to entrust the job to another firm. In return, they give the service provider a specific amount as payment for the services rendered. In this matter, business may expand and increase competitiveness through utilizing the outsourcing process. This may vary also in the performance and the trust gained by the companies. In the business marketing, outsourcing provides easy access for the company to export their product around the globe. The company may gather more clients with ability and saved resources brought about by outsourcing their other functions.
Business process outsourcing has developed and has been growing rapidly in the business market. Competition is also a factor in business process outsourcing. It is important for the company to choose wisely in dealing with others in terms in outsourcing services. As evidence business process outsourcing has been a factor in the development solid marketing.
Posted by rommel olido on October 30, 2008
A particular business is considered successful when its performance is always consistent. Although, outsourcing provides advantages that lift up business performance, there are still many risks that will create potential concerns. Engaging with only one outsource service provider for example, has made some businesses loose their edge over their competitors. Because most companies who engage in outsourcing are dependent on the knowledge and technology of their service provider (vendor), they expect their business needs addressed, but unfortunately, some service providers fail to perform what was agreed. Another concern is, when a company uses only one service provider, the relationship can turn out to be difficult. Business knowledge tends to reside with the developer and if the vendor holds the majority of this knowledge, the company is at a disadvantage.
To avoid those problems in outsourcing, an innovation has evolved in this industry. Appearing to have similar purposes with outsourcing, multi-sourcing has very different objectives. Most outsourcing companies are moving away from large IT contracts and instead outsource from more than one vendor. A vendor that can successfully handle a wide range of tasks, such as networking, business processes and application development is very hard to find. Through multi-sourcing, a particular company can use the resources and expertise of various vendors. A company can be open to more options for a specific process and function when this strategy for business is applied.
Multi-sourcing is indeed offering a new strategy for experienced outsourcers and companies looking to outsource for the first time. As outsourcing deals begin to diminish in size, the risks related to global sourcing from a single vendor should also begin to reduce.
Posted by tarhata on October 29, 2008
The outsourcing industry has created fresh opportunities for the Philippines to be Asia’s business process outsourcing (BPO) force. This is due to the expansion of demands for business process and IT outsourcing solution that reach through different time zones and into the international scale. Due to this, offshore outsourcing is duly practiced.
Offshore outsourcing means an organization actually hiring an external unit to do its business functions. These services are usually provided in other countries with completely foreign subsidiaries.
In the aspect of local and global marketing, the founding of technical support outsourcing companies in our locales is considered a feasible step for these foreign corporations to implement cutback measures. Thus, it allows them to track down radically required cost reduction schemes but with high quality production.
The Philippines has emerged as an IT outsourcing solution that aims to provide offshore outsourcing services to the global market. Low cost of labor and excellent work done by Filipinos has gained the taste of these companies that have been looking for such quality conditions. Moreover, a gradual rise in growth percentage was predicted in the coming years despite the global rundown. Hence, IT outsourcing consultant companies in the country will be experiencing an affirmative impact of this so-called prediction. Philippine outsourcing then, is fast developing its lead in the Asian outsourcing industry.
For this reason, the Philippine information technology outsourcing prospects have become a positive sign of better days to come for the many skilled professionals that are only waiting to be given the chance to prove their worth.