Outsourcing has opened opportunities for companies to gain competitive advantage in the tough business world. It has been a great help especially for small organizations that wish to provide quality service at a lower cost.
Why Choose the Process?
There has been a long debate whether companies should outsource jobs or not. For businessmen, it is a strategic way to save cost. However, opposing politicians think that it lessens job opportunities locally and in turn, affect the country's economy.
For what it's worth, outsourcing is a great option for organizations that wish to gain profit while reducing corporate expenses. This is plausible especially if the organization will use a suitable third party service such as business process outsourcing (BPO) or knowledge process outsourcing (KPO). Business process outsourcing services may include payroll processing, human resources, warehousing, transport, customer service, collections, distribution, sales, technical support, and so on.
Over the years, the system has utilized skills and expertise that are significant for the success of any organization. Here are the reasons why businessmen will consider it.
• Lower costs. One of the reasons why western countries will offshore their services is to save cost. Asia is the top choice of western countries because of lower labor cost. As a matter of fact, businesses expect a 60% savings by outsourcing their tasks to third-party service companies.
• Efficiency. Business process outsourcing services include customer assistance and management. Through the help of adept and well-trained employees, customer inquiries and concerns are immediately addressed. Thus, third-party service providers ensure that customer satisfaction, goodwill, and trust are strictly monitored.
• Excellent Management. An effective management is the core of a successful business. The availability of outsource providers give companies an opportunity to innovate and focus on specific tasks. For instance, a company outsources their human resource activities. This will allow the company to focus their manpower and resources (that were once allotted for HR tasks) to their core activities and innovation tasks.
• Productivity. Each company will outsource with one thing in mind and that is to be productive. Productivity is the capacity to apply skills, ideas, and technology to acquire profit. It is equally important to ensure that a business is able to render quality service to its client.
Outsourcing gives business a different name. It improves internal management, effectively saves cost, increases commitment in different business areas, and gains market access.
Over the years, Asian countries have shown increase in business profit. This can be attributed to the growing industry in the region. Here is a list of countries where business process outsourcing services is a success.
• India. With a large number of English speaking professionals and thousands of Information Technology graduates, India held the top position as the top country in the industry, both in Asia and around the world. It is said that 80-90 percent of the global market outsource in this country.
• China. This country is said to be the top rival of India for the number one spot. In a recent survey conducted by KPMG, with 280 senior company executives, 41 percent of the respondents said that they have an outsourcing provider from China. Over the years, China's activity has significantly increased. Its market has reached $7.5 billion in 2007 alone.
• Philippines. With an excellent experience in BPO industry and a large population that speaks American English, Philippines is a promising contender for the top spot. In addition to English competency, the Philippines also boasts a pool of medical graduates. This made the country a likely place to outsource medical and healthcare-related tasks.
• Malaysia. The government of Malaysia has shown an outstanding support for outsourcing companies through its world class infrastructures and policies focusing on improving English proficiency.
• Czech Republic. Another Asian country that has a 5.6 outsourcing index, and ranked on the seventeenth spot. It has developed the popular AVG antivirus software. Located between Austria, Slovakia, Poland, and Germany, it is often referred to as the gateway to both eastern and western countries. Also, the number of IT graduates has increased over the years, which greatly demands higher work force.
Business process outsourcing services greatly help in promoting global business impact. Aside from lower cost, its round-the-clock service has reached various customers of different cultures and time zone. Indeed, the process has opened absolute employment opportunities and competitive strategies for business sectors.