Martin Winter, Principal Consultant for ISG, recently published an article at info.ISG-One.com, and said businesses from major outsourcing markets are increasingly seen bringing outsourced processes back home because of various reasons. However, he noted that some decision makers are using insourcing unfittingly.
Backsourcing was also mentioned in the article and Winter said it is more appropriate for insourcing’s context, which is basically to bring subcontracted work back in-house.
For business owners who are considering backsourcing for their operations, here are some things to take into account:
Lay out a clear motive first before making a move. There are several reasons why business owners choose to pull outsourced operations back. For example, they are seeing a spike in the cost of services. Another one is when the initial contract terms are no longer applicable to the current operation. Your reason for backsourcing should also stem from the business side of the company and should not be used as a quick solution to fix unexpected problems.
Make sure you are not short-staffed. Some of the employees who were initially working internally are often absorbed by the outsourcing service provider, given a different assignment or they resign. Before backsourcing, review the capabilities of your internal staff first and hire accordingly.
Create an integration plan. For businesses that are involved in multisourcing setups, they would have to evaluate first if backsourcing can be integrated seamlessly. Some of the areas they would have to look into are technological capacities, contract provisions, and management arrangements. This would avoid the disruption of the current process and minimize misuse of funds and time.
Create a transition team. They make the integration part of backsourcing easier for business executives. They will also help business owners maximize the potential of the backsourced processes, and can perform debriefing tasks should they choose to just switch providers instead of taking work back internally.
Document all the details of the backsourcing process. Not only will you have a benchmark for the next backsourcing operation, you will also have better control of the expenses since you have an idea of the costs and risks included in both outsourced and internal operations. Also, make sure to list down the progress and improvements of your strategy and how you were able to achieve desired goals.
The latest industry analysis report from Frost & Sullivan was recently discussed at Biztech2.in.com. It was found that last year, the contact center market prospered and jobs in the segment grew 8.4 percent. The current position of the contact center segment denotes the growth pattern of the Asia-Pacific region and will maintain the industry’s resilience.
In 2012, the segment employed more than 3.7 million agents and is projected to reach six million in the next seven years.
Strong demand from banking and finance (BFS) and telecommunications industries drives the growth of the call center outsourcing segment. It is also believed that APAC’s voice services sector will continue to post the highest growth globally.
According to Krishna Baidya, Research Manager at Frost & Sullivan, foreign investments fuelled the call center market in Asia-Pacific for many years and accounted for 39.6 of the market last year. She added that the low cost of operations and labor, language proficiency, infrastructure, and affinity to Western culture are the characteristics that make the APAC region an ideal location for voice-based processes. Local demand is seen growing as well, driven by the increasing focus on quality customer service.
Providers in the APAC region began improving customer service in 2012. Technology and new business models were used to design new strategies to achieve better selling points such as overall efficiency and cost advantages. Training programs are also included in capital investments for the refinement of the agents’ interpersonal skills and domain knowledge.
Baidya noted that contact center companies are now focusing on implementation, management, consultation, and training of call center agents. They are now aiming to produce more high-quality agents to improve contact center services.
However, the segment is facing challenges such as anti-offshoring issues, market saturation, next wave outsourcing destinations, increasing attrition rate, inflation, and declining quality of services.
Baidya reiterated that cost is no longer the main focus of clients as they are now looking to a complete solution that will give them more return on investment.
Before, when people talked about outsourcing, they would think about manufactured products. As technology progressed, it became the avenue for new growth opportunities in various industries and it became one of the more commoditized segments in the services exports arena.
An article posted at Business2Community.com highlights data security - an issue that is commonly faced by many business owners particularly those in the SMB segment.
IT processes are gaining traction, and so are risks. It appears that hackers and cyber criminals are one step ahead of IT professionals - they are always finding ways to breach even the most sophisticated data security program right after the service/product launch.
IT outsourcing, though perceived as a high-risk business tool, enables business owners to reinforce complicated IT processes that are too much to handle for the in-house IT team. For instance, a company with 2000 employees and several IT personnel uses a ticketing system to properly address requests. But the requests are a hodgepodge of assistance, hardware installation, and even upgrades. Some of the processes can be outsourced to an IT service provider which will work remotely, or solve issues using the internet.
The success of an IT outsourcing operation will rely on the partnership between the provider and the client. There will always be data security issues and these can only be solved if both parties have a solid relationship, built on trust and the desire for growth. Also, the contract should be scalable in case the course of the operation changes. It should still enable a smooth transition and rates should be standardized so that problems are minimized right from the start.
The cloud is one of the latest tools used by businesses everywhere. It enables multinational companies to manage and store data efficiently and reduce brick and mortar storage costs - even risks.
Since it is a fairly new concept and most cloud vendors are overselling their services, these tips shared by ISG Principal Consultant Scott Feuless at info.ISG-One.com can help business owners properly evaluate and select the right cloud services provider.
Weigh costs vs. your business’ needs. It is a known fact that cost is one of the major reasons businesses tie up with service providers. Before looking at the offerings of cloud services providers, make a list of what your business needs and the reasons you need them. Compare the prices to all the options available in the market, even in-house, and include periodical processes such as hardware upgrade, and initial costs like transition.
They should be flexible enough to handle changes. Sooner or later, the current trends in cloud technology will no longer be applicable to your business because everything, even the market, is constantly changing. Your budget should have a margin for sudden modifications to accommodate the demand of your customers.
What do past customers say about them? Not all large and tenured providers will be compatible to your business. To gauge the strengths and weaknesses of your prospects, review their track record for at least the past five years. Also, use in-house data as you go over the contracts.
How secure is their system? Providers are usually tending multiple customers at a time and any mishap can cause your business’ data to be exposed and exploited. See to it that the security measures of your chosen provider comply with industry standards, or are more substantial than others. They are prone to be attacked more because they house multiple data from numerous clients.
Consider the longevity of your partnership. Always look at the possibility of switching providers or termination of your cloud outsourcing contract. Make a contingency plan in case it happens a little earlier than you expected. Also, get your development team involved so you would know which areas of the contracts and strategies you should look into, and which of your products will be affected.
This is an overview of the latest talent pool of MicroSourcing - with basic information about our common disciplines including the job profiles, monthly salary ranges, and available talent.
Online marketing is one of the most outsourced processes today. Apart from the fact that it is the type of work that uses the internet, it requires commitment and experience to make an online marketing campaign a success across several platforms such as social media, affiliate marketing, viral campaigns, and even search engine marketing.
However, outsourcing has gotten a bad rap as it is perceived to take away jobs from first world countries. But the reality is many business owners are struggling to make ends meet, and keep their respective customers happy with the quality of their products and services.
Business2Community.com shares numerous advantages of outsourcing online marketing:
It is more economical. Outsourcing enables business owners to take advantage of the labor arbitrage in some countries. They are able to employ skilled people who are ready to take on online marketing work at relatively lower costs.
Business owners will have access to a larger workforce. Internet marketing involves several platforms and each platform requires a specific skill. With outsourcing, you can find candidates who are suitable for your marketing requirements.
Establish a non-stop operation. There are several internet marketing processes that are time-sensitive and social media is one of them. It requires constant monitoring as results and activities from customers are seen real time. In some cases, work has to be done in a different timezone, which is why instead of hiring someone who’ll cover the night shift locally, work can be outsourced to an offshore employee.
Have a remote team. Instead of having to set up additional workstations, a remote setup will do just fine, as long as you are able to communicate the requirements of your marketing campaign and business to your offshore online marketer.