According to M K Lawyers Senior Associate Noelene Treloar, outsourcing is a great business solution to cut costs, instead of incurring additional costs for training and integration of new technology.
However, there are still challenges that business owners may face should a deal make a wrong turn. Some of the risks that are often associated with outsourcing are: data security, becoming too lax on the service provider’s performance, selecting the wrong service provider, and mismanagement.
To address and avoid these problems, during the first few stages of negotiating, parties should be able to identify their concerns and requirements for the duration of the contract. These can be rate packages, extent of the project, and which parts or processes do each party own.
Meanwhile, High Caliber Line Australia Chief Executive and co-founder David Torelli said he has partnered with a service provider from India for the backend IT processes of his company. One precautionary measure he applies to his company is he minimizes the sensitive data that he shares with the provider.
The newest addition to MarketResearch.com’s line-up of helpful data, Healthcare IT Outsourcing Market - By Application, aims to provide the latest trends and projections in contracts and operations within the segments of providers (EHR, RCM, LIMS), payers (CRM, Claims Management, Fraud Detection, Billing), life science (ERP, CTMS, CDMS), operational (SCM, BPM), & infrastructure (IMS, Cloud Computing).
It was found that with the rising costs of healthcare and increasing demand of quality care, healthcare organizations are looking into solutions such as healthcare IT outsourcing to address these challenges. It is a suitable solution that is gaining traction in the healthcare information technology market where an organization selects the most suitable service provider that will perform various processes.
Initially, enterprise-type of organizations were the only ones making use of the business solution, but as years passed, mid-sized businesses followed suit. Some organizations were seen outsourcing the entire information management system, and some only outsourced several processes like CRM, EMR, and billing systems.
The report projected that the industry will experience a CAGR of 7.6% and reach $50.4 billion by 2018 from $35 billion in 2013. Moreover, the key drivers of the HCIT outsourcing sector are healthcare systems industry and pharmaceutical industry markets. Outsourcing is used to reduce operational and maintenance costs, enable organizations to access larger pools of IT and medical professionals, mitigate risks, and update technology used.
Other significant factors that are increasing the demand from the market are: the need to control the rising costs of healthcare worldwide and to improve the return on investments particularly in back office administration and IT management systems, life science division, and payers. Other trends that are expected to propel the HCIT outsourcing market are: the growing medical tourism in Asia, the new standards set by the US Federal Government, new ICD-10 conversion guidelines for coding, rise in aging population, etc.
Some of the HCIT market’s challenges are the endless security concerns, high capital outlays, fragmented nature of the healthcare system, as well as language and cultural barriers.
According to data provided by Cushman & Wakefield, India maintains the lead in global IT-BPO industry, with its abundant supply of skilled and affordable IT workers as well as an attractive business environment.
However, even with its current success, the report noted that competitors from South and Southeast Asian countries are seen taking over some markets for the global IT-BPO sector.
Other factors that put India further than its competitors such as the Philippines, Malaysia, China, and other South Asian regions for IT-BPO processes include the higher cost arbitrage, rapidly growing domestic market, and stable political system.
The growing domestic demand is great leverage for India because it reinforces the growth potential of Tier II and Tier III cities.
One of the key competitors identified by the report is the Philippines for voice-based processes. The Philippines is known to have a huge pool of educated English-speaking talent.
by: Sarah Joson
As the country is currently recovering from the most recent typhoon and southwest monsoon tandem, workers in the business process outsourcing (BPO) sector are asking BPO firms to be more understanding and sympathetic to the health and safety of employees during such harrowing times.
One main concern that was pointed out by the BPO Industry Employees Network (BIEN) Philippines is the attendance requirement of BPO firms during massive flooding.
Ian Porquia, spokesperson for BIEN Philippines said for numerous call centers, the show must go on and employees had to report to work. Moreover, the organization said call centers are very strict with regards to attendance and that failure to comply could lead to termination of an agent.
The organization appealed that they are aware of the consequences of failing to meet the demand of clients, but on days with massive flood and heavy rains, BPO executives should prioritize the welfare of employees.
The Metropolitan Manila Development Authority (MMDA) reported that last Tuesday, nearly 50 percent of Metro Manila, where more than half of the 700,000 estimated BPO employees had to report to work, was flooded.
BIEN is also urging the Information Technology and Business Process Association of the Philippines (IBPAP), to take action and inform member-businesses to ensure the welfare of outsourcing workers during the typhoon period.
Renowned tech research firm Gartner Research recently reduced its growth forecast for IT outsourcing this year as companies are seen spending less. It is reduced to 2.88 percent, which equates to $288 billion in total IT outsourcing spending.
Gartner Research Vice-president Bryan Britz identified some challenges faced by the industry. These include the shift in information technology outsourcing (ITO) delivery models, political, economic, and labor environment in outsourcing destinations, and the financial track record of providers. He also noted that 2013 will be similar to 2012 for the Asia-Pacific and Western European markets.
The IT segments that are experiencing growth are cloud technology and data centers propelled by small to mid-sized businesses that are making use of infrastructure as a service (IaaS).
Meanwhile, emerging markets such as Asia-Pacific, Latin America, and Greater China are predicted to grow as high as 13 percent from 2013 to 3014.
However, data from the Information Services Group revealed that hundreds of global outsourcing contracts will expire this year, with a total value of $21.2 billion - 75 percent of the total are IT outsourcing deals.
A recently published study done by Gartner on CIOs in the fourth quarter of 2012 indicated that nearly 75 percent of government IT departments are showing stability in IT budgets for 2013, as resources are either plateauing or are increasing.
The recent changes were observed during the period when the government is looking for solutions that will help save on costs and minimize the cost of various IT services. The report also noted that the increased budget could mean IT departments are urged to seek long-term adeptness that will lead to huge savings.
According to Gartner, CIOs of government offices want to achieve overall cost savings, which means they are not only focusing on the IT division, but an inclusive growth.
Another factor that is set to be monitored closely would be the analytics and performance of their efforts so they can identify which segments can be improved and deliver more savings.
by: Sarah Joson
In celebration of its ninth year, the International Contact Center Conference and Expo (ICCCE) will be held in Cebu. Thousands of delegates from across the world will get to combine business and pleasure from August 28 to 30.
With the theme "Where the World Meets the Philippines", the three-day event is set to examine and tackle trends and best practices, to be spearheaded by business experts and industry leaders. This annual celebration is the BPO industry’s biggest event in the country, as it serves to not only broaden networks and horizons, but also mingle with speakers and experts.
Contact Center Association of the Philippines (CCAP) provided the theme for this celebration and as its president, Benidicto Hernandez, mentioned in a press conference, they chose Cebu to promote locations outside Metro Manila, and to show the delegates what the city has to offer. Hernandez takes pride in bringing the world’s largest contact center conference to Cebu, as it is burgeoning with great talent, modern infrastructure, and healthy business environment.
The Queen City of Smile, as Cebu is locally known, is considered the 8th destination in the world in setting up contact centers, as reported by Tholons, a US-based research company.