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Business Process Outsourcing

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by praveen.saini

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Business Process Outsourcing has taken a new dimension with Clients seeking to outsource their business process to vendors who provide the advantage of more than one offshore location for outsourcing. This is increasingly becoming the trend due to high competition, high customer satisfaction requirement and the need to push costs to the bottom in any given industry.

I have a very good example of how a company has successfully provided offshore outsourcing services to major clients from their centers located at the India. If you are looking to offshore your operations and would like to know how a BPO can bring optimum benefits for your business, then drop me a line.

Regards,
Praveen

11 replies

by choppit

It depends how you define "successfully provided offshore outsourcing services". Every experience I've had with outsourced, offshored services has been less than satisfactory.

Quantity rather than quality sums the situation up quite well.

by choppit

In our call centre we have someone who came to us from an outsourced/offshored operation. Some time ago he was telling me that the expectation of his previous employer was that he keep 3 calls live at any one time.This all sounds really efficient until you see the his call stats;

Number of calls handled = twice the average
Ratio of complaints = twice the average
Conversion rate = 30% lower than average

by hockeyist

Take your cheap labour and shove it where the sun don't shine buddy.
Outsourcing is management's misinformed solution to poor product/performance in their local market place.
Has anyone seen some of these sweatshops that these outsourcing company's run? Sure, the ones that they show you are nice but the majority...
In my opinion, companies that outsource their IT do support modern slavery and are non patriotic.
Why not outsource, support modern slavery, put your countrymen out of a job and onto the street. This way the entity that is the company will be satisfied.

by choppit

Does anyone know of an operation that was outsourced and actually benefited the customer?

by hockeyist

I know of one case where an operations person was made redundant on a Friday (after 17 years service), was paid over $100K and was re-hired on the following Monday in exactly the same position, sitting in the same chair for contract wages.

by atxstranger

A lot of what is going on with outsourcing/offshoring is a misplaced calulcation of ROI and reallocation of expense.

In the case with the guy who was fired and rehired, management sees it as a shift of cost from salary and benefits to the contract. This change in classification makes sense when you assume the contract will be cheaper in the long run. Well at least you would hope that is the assumption, and it will probably be a couple more years before anyone can say with any certainty the effects of these contracts. The ROI on those contracts/projects usually doesn't take into account the efficiency slips, customer satisfaction, morale damage and other "intangible" costs that tend to creep into such large projects. To be fair, intagible effects of a project are hard to quantify, but you need to at least be aware of them before making the decision.

But those at the top (with the multi million salaries and stock options) see a chance to improve all of their wall street numbers (i.e. Rev/Employee gets a big boost under these arrangements usually as you see a decrease in salaries, health insurance costs, office space, etc etc) quickly and therefore increase the value of the company and their options. Most C level folks these days seem to be worrying about getting through the next quarter or the next year and have a hard time with a 3 or 5 year view. Just my 2 cents (and trust me that's about all I've got) on What's going on

by tony hopkinson

This is bean counter mode. 3-5 weeks will be nearer. Like you say it's profit/employee that is the metric. It's a short term decision, and all sort term decisions cost more in the long term.

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