Plenty has already been written on the pros and cons of outsourcing. However, the dismal economic scenario does merit a fresh look at the considerable advantages of outsourcing to Business Process Outsourcing or BPO companies.
Outsourcing is done either to lower the costs by tapping the cheaper resources available with such third party BPO companies or to employ skills that are not available in-house.
In general, outsourcing confers the following benefits on business enterprises:
1. Saving on costs
This is the most apparent benefit of outsourcing. While cost of resources especially of skilled manpower is quite high in developed countries, cheaper and equally well-trained manpower is available in developing countries such as India, Philippines etc., at considerably much lower costs.
Apart from having skilled manpower, these countries are also catching up in terms of advanced communication infrastructure and have fast developing robust markets of their own. Hence, it makes sense to outsource certain aspects back end jobs or high-end development work to subsidiary units, partner companies and BPO companies in such countries to save on high labor costs and also explore the newer markets.
2. Better quality of services
BPO companies have a ready advantage of skilled, trained and experienced employees and also the capability to customize solutions and manpower according to the requirements of the client companies. This in turn ensures better quality of BPO services.
It is important to note here that good amount of research, skillful negotiation and a watertight SLA (service level agreement) are absolutely necessary to ensure that the most suitable BPO company is selected and that it would deliver consistent and sustainable quality services.
3. Better time management
Since outsourcing to BPO companies located halfway across the globe involves a major difference in time zones, the advantage is that 24x7 production and service delivery is possible. As one organization in country A goes off-duty the other organization from Country B takes on the baton.
While the above benefits are measurable, there are some intangible benefits of outsourcing too. One comes in touch with a different country and its unique culture and this understanding is very useful when one wants to expand one’s business in that country.
Outsourcing is done either to lower the costs by tapping the cheaper resources available with such third party BPO companies or to employ skills that are not available in-house.
In general, outsourcing confers the following benefits on business enterprises:
1. Saving on costs
This is the most apparent benefit of outsourcing. While cost of resources especially of skilled manpower is quite high in developed countries, cheaper and equally well-trained manpower is available in developing countries such as India, Philippines etc., at considerably much lower costs.
Apart from having skilled manpower, these countries are also catching up in terms of advanced communication infrastructure and have fast developing robust markets of their own. Hence, it makes sense to outsource certain aspects back end jobs or high-end development work to subsidiary units, partner companies and BPO companies in such countries to save on high labor costs and also explore the newer markets.
2. Better quality of services
BPO companies have a ready advantage of skilled, trained and experienced employees and also the capability to customize solutions and manpower according to the requirements of the client companies. This in turn ensures better quality of BPO services.
It is important to note here that good amount of research, skillful negotiation and a watertight SLA (service level agreement) are absolutely necessary to ensure that the most suitable BPO company is selected and that it would deliver consistent and sustainable quality services.
3. Better time management
Since outsourcing to BPO companies located halfway across the globe involves a major difference in time zones, the advantage is that 24x7 production and service delivery is possible. As one organization in country A goes off-duty the other organization from Country B takes on the baton.
While the above benefits are measurable, there are some intangible benefits of outsourcing too. One comes in touch with a different country and its unique culture and this understanding is very useful when one wants to expand one’s business in that country.
No comments:
Post a Comment