Out-Sourcing for staffing
needs is not just an option in today’s competitive environment.
It is a survival issue. High operating costs and the shortage of
trained personnel here at home are the factors driving businesses
to look and think internationally. There is not a single big business
that is not out-sourcing one way or another.
Outsourcing grew out of shortage of trained personnel faced by US
Businesses during the 80’s and 90’s. To meet the shortage,
the businesses started importing trained personnel from overseas.
Importing the work force helped alleviate the problem. However, businesses
soon realized that exporting the work in place of importing the personnel
might be much better and preferable. This option resulted in added
benefits of:
Reduced cost
No human resource issues
No immigration issues
No cultural issues
Large pool of trained work force
available as and when needed
Industry Trends
Almost all of the Fortune
500 companies either are currently outsourcing or have efforts underway
to outsource some aspect of their business support services.
The top 400 growth companies declare they currently outsource several
business functions. 70% of executives surveyed say, they outsource
more than they did five years ago. 97% percent feel they will outsource
even more in future. Industry estimates that telephone-marketing operating
cost is expected to increase at compound annual growth rate of 8%.
Worldwide revenue for outsourcing will continue to grow at 20% to
25% in foreseeable future.
Experts Opinion
Outsourcing is now the
“preferred option” at many of today’s leading technology
companies - from industry powerhouse Microsoft to fast growing upstarts
like outer curve Technologies and Vertical Networks.
Benefits
Basically the outsource
partner becomes an extension of your office. The outsourcing partner
assumes responsibility for day-to-day operations and thus relieves
the client from HR issues. The outsourcing would result in:
Quality Workforce.
College graduates versus high school
graduates.
High level of work ethics.
Willingness to work all hours.
No shortage of workforce.
Faster turn around time
Nighttime hours will no longer be
wasted.
No HR issues to deal with.
User only pays for productive hours.
No investment in infrastructure to
set up call center.
Concerns and Issues
Foreign
worker may not have well enough English language communication skills?
More a myth than a fact!
Large pool of workforce available educated and trained in English
Language. Comparatively less of a problem as compared to Southern
vs. Eastern vs. Western vs. Mid West accents right here at home.
Solutions
Comprehensive training.
Accent and diction training.
Extensive training to overcome cultural
issues.
Client involvement.
Client to communicate and judge the offshore staff
to evaluate their command of the language.
Clients input in employees’
selection process.
Survival Issue
Companies opting not to outsource
will have a much higher operating cost as compared to business outsourcing.
Companies, which anticipate and react quickly to the changing business
environment often, come out on “Top”!
Due to higher operating cost non-participating companies will not
be able to maintain competitive edge and their survival will be in
jeopardy.
Companies resistant to change will become extinct!
