Archive for October, 2009
Google offers outsourcing solutions
Everyone knows Google, in fact, they are one of the most recognized brands in the entire world. Alongside Coca Cola, Microsoft and Apple, Google has now developed a brand that people use to describe an action. If you ask someone to search online, it is likely that you will ask them to google it, such is the power and importance of Google. This has seen the company rise to the level of Xerox, Hoover or Tannoy where the company name is used to describe all of the firms operating in the same field. However, Google has not stopped there, they look to be spreading across all other aspects of the internet and the Google Mail system is becoming extremely popular and important across the globe. A lot of this is down to the fact that the brand name of Google has built up and the generosity and goodwill amongst their colleagues. It is not easy to develop a following amongst so many people around the world but Google have managed to do so in such a short space of time.
One interested party is the Los Angeles City Council which recently held a vote about whether they should outsource their email system to the Google email system. The result of the vote was an emphatic 12 to 0, which indicates the presence and power that Google have in the modern era. The contract that has been signed is said to be worth over $7m, which instantly makes it worthwhile to pursue. This move will see each employee of Los Angeles City Council being given their own cloud home on the Google system. This will see over 30,000 employees move onto the system but with any move of this size, there are likely to be concerns involved.
This is why LACC have made sure there has been a clause inserted into the contract that if any security breach occurs within the system, Google will financially compensate the organization. There are likely to be many instances of highly confidential information and data stored and passed on the Google system so there is a potential for a lot to go wrong. However, Google are extremely confident that they will be able to meet all of the requirements placed upon them and agreed to the clauses readily. It should also be remembered that the email system being used by the LACC and Google is not the standard Gmail system which is used by people all around the world. Rather, this system will be a much more advanced system, ensuring there should be a higher level of security for all users.
There have been many cities and governments pondering about the Google Mail system and there was almost a standoff process in who would be the first body to sign up to it. The fact that Los Angeles has moved means there is likely to be a wave of similar councils and government bodies following in the wake of moving to Google. You can guarantee that Google are going to go from strength to strength with this latest move and you can only ponder what they will offer next.
Elance makes outsourcing simple
The internet has quite clearly made the world seem like a smaller place. Connecting people with so many new communication channels and possibilities has made it easier for firms to interact with other companies and customers but that is hardly the tip of the iceberg. Many of the firms operating in developed countries will consider their cost of labor to be higher than what could be had in many developing countries around the world but working out how to channel and utilize this staff force is difficult. It can be an extremely bad PR move for any firm as it invariably involves placing some local based staff out of employment whilst hiring people from another country that is able to provide labor at a much cheaper rate. This is what is known as offshore outsourcing and has been a staple part of many firms’ international tactics in recent years. However, offshore outsourcing has generally seen jobs and departments move wholesale to a new country, perhaps with new offices being set up specifically for these jobs.
It is obvious to see why major firms with huge work forces will gain a benefit from this but smaller firms are unable to benefit from this. However, the internet has opened up the possibilities to employ a single person or very small team of staff, wherever a firm can find them. This means that no matter where in the world a potential employee is situated, they can be utilized to allow a firm to reduce their labor costs and save money.
There are web sites like the elance site which allows companies to advertise jobs they require to be filled and allow potential employees to tender for these jobs. This site, and many others, has dramatically changed the way that employers go about finding workers and fulfilling their work orders. The beauty of elance is that it is extremely simple for all parties to use the site and this is very useful for encouraging communication and shared workloads. A company will upload details of their job and interested parties can tender for the product, indicating the price they take for completing the job and the deadline with which they will complete the job in. It is possible for the tendering party to supply further information about their experience and credentials for fulfilling the job and there are additional tests than the tendering parties can undertake to offer some guarantee about their working experience. This provides a degree of confidence to the firms who are advertising the jobs and all customers will receive feedback, which also gives some form of indication about the quality of the work of a supplier. Once a winning bid has been accepted, the two parties can start sharing information about the job and it is possible for all parties to communicate directly through whatever mechanisms they choose, which can help speed up the process of outsourcing. If a firm has only infrequent jobs that they need completed in a short time, using an outsourcing site like elance is a fantastic way of working.
MOM issues outsourcing warning
It has been one of the most common announcements with regards to outsourcing but there is the feeling that perhaps the mantra of quality is starting to seep through. Companies and experts can say this until they are blue in the face but sometimes it takes governments to speak up and spread this message to the population. Some of the nations which are best known for providing outsourcing work are very loyal to their governments, which mean they are far more likely to listen to what they are told from their ruling bodies. If this improves the working of outsourcing around the world, then everyone can be thankful for government intervention when it comes to business. This is exactly what has happened in Singapore recently, with this nation being at the forefront of outsourcing and for being obedient to government’s teachings.
The Ministry of Manpower has made their feelings about outsourcing very public and if this can influence behavior, then the face of outsourcing in Singapore may change a great deal. The main factor that the government is now preaching is that firms should seek to choose contracts and tenders by the quality that is being offered as opposed to lowest price on offer. It is only natural for a firm to consider choosing the lowest priced option, after all, reducing the labor cost is one of their major aims and outsourcing is a tremendous way to achieve this. However, with some people, it is worrying that the reduction in the cost of labor will tend to result in poorer quality of product or service.
It makes sense that a product or service that is being produced for a lower price is going to be of a reduced quality, and there has to be a tradeoff between these areas in order to ensure that everyone remains happy. If the quality falls, it is likely that the demand for these products will fall. The current economic crisis is causing many consumers to re-consider their choices and they will demand a greater value for money with all of their purchases. As companies are striving to change their current behavior in order to get increased value, there has to be an expectation that the consumer is doing the exact same. However, the demands for a product or service between supplier and customer are very different which means there is likely to be a gap in the middle. This is just one of the reasons why the Ministry of Manpower is urging this focus on quality as opposed to the lowest price possible. Of course, the Ministry of Manpower is interested in having people working and ensuring a workforce is being fully utilized so they have an interest in stating a desire to have quality remaining high. If cost-cutting reduces the labor force working, then the Ministry of Manpower may be put under pressure to find work for more people, so maintaining a quality in work could be a great tactic for the Singapore government to ensure people remain in employment.
Has outsourcing caused the fall of Rangers?
“Lets all laugh at Rangers, lets all laugh at Rangers, ha ha ha ha, ha ha ha ha.”
A chant that has been heard at many football stadiums around Scotland as fans of all different teams take great delight in things not going the way of Glasgow Rangers on the field of play. Even national pride is put to one side when they are demolished in Europe and this season, with 4-1 home defeats against Sevilla and lowly Unirea from Romania, has given plenty to cheer about for those who do not like the Royal Blues.
However, there now appears to be an even bigger reason for non followers to have a riotous laugh at the Teddy Bears as their financial crisis gets darker and darker with each passing day. There may be an emerging twitter trend of skin rangers spreading around the world but the worst case scenario is unlikely to happen.
The set of fans who used to wave money at other clubs as they bossed and bullied around the 1990s now look as though they could be going bust in the 2000s although no one seriously expects a Scottish institution to go to the wall. An institution is what their loyal fans consider Rangers to be but no doubt many other people consider the institution which housed two of the clubs founders to be a bit closer to the mark.
The hope for Rangers surviving lies with Dave King and if he can take over from David Murray? Murray earned himself the nickname Dodgy Dave due to many issues, notably the amount of outsourcing jobs he took away from Ibrox, but King is Dodgier Dave. Where his money will come from, no one knows as it is currently frozen in South Africa whilst King faces over three hundred charges of fraud. You would think King has more on his mind than the future of the team he walked from Castlemilk from Govan every second Saturday to see but it just shows the passion felt by fans of the club.
Sure they have traditions like having a sectarian signing policy for most of the 20th Century, fans who riot at the flicker of a TV screen and an arrogance that knows no ends but there is good about the club too, which is why they deserve to be saved. The clubs generosity to serving members of the Armed Forces is limitless, shown by the tickets given away recently for a Champions League game match against the champions of Romania and all the way back to the time when two Canadian soldiers were greeted warmly by the clubs then manager before they went back to fighting during the War.
However, it is not so straightforward and Lloyds, the bank who now holds the purse strings, knows this. Any prospective buyer will see that cash streams, vital to so many clubs such as food stalls, merchandising, ticket offices and much more have been outsourced away from the football club. They were outsourced to companies which appear to have a strong link to David Murray, the outgoing chairman who the media will never blame for the fall of the Empire but questions need to be asked by someone.
Air Malta turn towards outsourcing
Malta is an extremely popular holiday destination with an illustrious history behind it which encourages many people to come and visit the nation. In addition to this, there are a multitude of holiday maker attractions with fantastic beaches and glorious sunshine giving further reasons to bring people to the country. In addition to this, public awareness of the country has risen dramatically in the United Kingdom due to the fact that Air Malta Sponsor Sheffield united, a soccer club widely known throughout the land. The advertising benefits of sponsoring this club have caused many more people to think of Malta as a possible destination and to fly Air Malta in getting there.
However, not everything is rosy for the company, even with this wide exposure, as the current economic downfall has affected them much like it has affected so many other companies around the world. The recession in the past few years has been extremely damaging, causing many firms to go bust and leaving even more changing their policies and attitudes to work in order to save money and prolong the business. One way for firms to reduce their labor costs but still maintain a quality of service is through outsourcing their work to a provider that is able to work for a lower fee.
However, Air Malta are looking into outsourcing for another major reason and one that can be currently overlooked when it comes to outsourcing. An airline company needs to have staffs that are capable of working all around the clock, which can put a great strain on resources. It can be difficult to find staffs that are willing to work all of these hours or on a specific route without paying additional money to the staff for doing so. This can raise the cost of labor for the company which is obviously something that they are trying to avoid. Therefore, using an outsourcing supplier to provide the staff who will work any hour of the day ensures that the costs are lower and deadlines and targets can be met.
Air Malta are not the first company to face these problems, nor will they be the last and the inevitable solution that companies tend to turn towards revolves around redundancies for their current staff. Although this may lead to a bad public relations issue for the company involved, the cost saving is likely to be of enough benefit for them to continue their plans to push through the redundancies.
As always, news of a potential round of redundancies has been met with criticism and unpleasantness from the trade unions involved, which should come as no surprise. Trade unions exist to work for their member’s rights and behalf, so there is likely to be a disagreement between all parties. A trade union is unlikely to see the fact that a reduced labor cost through outsourcing work is what the firm is really after and that the number of people being made redundant is unfortunate. As discussions continue with regards Air Malta, expect to see both parties fighting harder for their rights.
Trade unions find some fight against outsourcing
It is very common for trade unions to get involved when a company or organization tries to introduce a number of outsourcing measures to reduce the number of employees at a firm. Reducing employee numbers is an excellent way to lower the labor costs, one of the highest factors for a firm to consider. Being able to remove this cost from the running of a business brings a great deal of benefits to the company that manages to do so but the down side is fairly evident for the staff employed. Given the current economic downturn, losing a job can be extremely harsh and staff members and trade unions are keen to fight against this happening.
The sad thing, it is quite common for the trade union to have very little impact or influence on these decisions and it almost seems like it is pointless for these bodies to exist in the modern era. However, every so often, a positive result is obtained which gives everyone hope that the day of the trade union still has some life left in it. America may not be the best place to look for to see a sign of life when it comes to trade unions defeating outsourcing measures but this is exactly what has happened.
The word of a Government watchdog is always very important and they have made the recommendation to the Defense Department that their recent decision to outsource is perhaps not entirely lawful. The plan was to ship 400 jobs to an outsource supplier but it was found there was a serious flaw in the judging criteria used in the vetting and tendering process. Any complaint of this matter is quite serious and obviously there was a lot of time spent on viewing the overall process.
The American Federation of Government employees made the complaint which has been upheld but some people believe that the complaint was made by a body that was too close to the decision. The American Federation of Government is the trade union group that represents the employees who would lose their job if the decision was verified. That may seem as though they have a vested interest but a trade union has a duty to work for their members and the level of fight on show will no doubt give hope to everyone that these bodies still have teeth.
The key reason for the dubiety and doubt in the tender of the original winning party came about because of the extremely low level of retirement benefit that was factored in the total cost. There were also doubts about the supply costs factored in and similar questions over the efficiency assumption levels. If other tenders made the same mistakes or errors in their bids, it may have allowed their bids to have appeared more attractive so the fact that the American Federation of Government employees felt it was necessary to make this complaint is not as unfair as even the most ardent critic of trade unions may have previously thought.
Will the Royal Mail strike lead to outsourcing?
In the build up to Christmas, and although it may be too early for most people to be considering it, businesses have to be prepared, many UK firms are starting to fret over the Royal Mail strike. The ins and outs of the Royal Mail strike won’t be discussed here, both parties have their points and their failings which indicate an unwillingness to negotiate but for the firms who are looking to sell in the run-up to Christmas, the uncertainty is bad for business.
Quite simply, if consumers are not confident of ordering online and receiving their purchase in time for Christmas, they will look elsewhere for their gifts. This could be disastrous for online stores who invariably see the Christmas retail market as their most important time of the year. If consumers are unwilling to shop with them, they could see their whole projections for the year go to waste. Given the current economic climate, many organizations are largely reliant on this market for their existence and the New Year could see firms going to the wall if they have a disappointing Christmas sales period. This is not the concern of the Royal Mail management or striking staff but there is a wider economic impact for the country as a whole from their actions.
Therefore, companies need to do all that they can to mitigate the downside incurred by the Royal Mail strike and outsourcing their delivery system is a fantastic way to work around the problems they may face. Many courier and delivery companies are reacting to the Royal Mail strike by offering deals and incentives for customers to work alongside them and this provides a better opportunity for the company to offer their customers a guaranteed delivery date. An online retailer which can advertise the fact that their deliveries are being handled externally from the Royal Mail will offer a greater degree of confidence to their consumers making it more likely that a shopper will buy from the site.
Therefore, setting up an outsourcing deal may be of tremendous benefit to a number of firms for the biggest retail period of the year but it is not something that should just be rushed into? Depending on the length of the strike, what sort of contract should be entered into? Is it better for a firm to just look to covering the Christmas market and then go back to the Royal Mail for the quieter New Year period? Would the outsourcing firm be happy with this type of contract? Would there be a higher premium involved because of the short term nature of the contract? If the price was high, could the firm justify using this outsourcing service or would they be required to pass on the extra cost to their customers, making it seem a costlier process for all concerned.
With the focus turning towards promotion and selling, this may not be something that many firms have a lot of time to wrestle with but there needs to be a focus on what needs to be done for the good of the business.
Outsourcing unwanted jobs can help
There are certain jobs which do not seem worth the hassle of doing. Yes, in these tough economic times it is important to be able to have a job and bring home some money into the household but there are others things to think about rather than money. Not everyone can take the pressure and responsibility of some jobs whereas some people are uncomfortable with the public perception of these posts. There is no doubt that some people in the general public have big issues with certain jobs and no matter how much the pay is, some people will never be happy with them or view them in a positive manner. One such job is that of the parking warden and although they bring a tremendous benefit to the local community, there are not too many people queuing up to offer praise or thanks for those who manage this job.
Therefore, for some councils or local governments it may be the ideal job to outsource because in that way, they can distance themselves from the unpopular tasks and jobs that these people perform. Local councilors or government officials need to be aware of the public profile and image of them and being able to say that the parking attendants are no longer under their operation may earn them a few extra popularity points with some people. Bearing in mind it is a person’s livelihood that is being discussed in this manner, it is disappointing that some people can have such an adverse reaction to people merely trying to do their job but society appears to be angrier today than it has been before which means these jobs come in for greater discussion and dislike by some members of society.
However, Windsor in Canada see this opportunity as a great way of saving money and with the current economic climate, this has to be at the forefront of the thinking. The money saved from outsourcing parking attendant posts should free up funds for other areas, which many local citizens would declare to be more important. Certainly, if these released funds could be put towards schooling, health or other needed areas then most people will be happy with the decision to outsource the jobs of the local parking attendants.
However, as always when job losses are discussed, there are going to be people unhappy with the decision and it is clear that those who may lose their jobs do not agree with the decision. Even though the job losses may bring a greater good to the overall local economy, the people directly affected by these changes are going to be greatly upset and as there is no guarantee they will be given one of the jobs, who can blame them for being unhappy.
The local trade union has asked for answers and is hoping to fight for the people who have lost their jobs. Whether they can be placed elsewhere or be offered a chance to apply for the outsourced jobs remain to be seen but even though some people are unhappy at losing their job, there is an overall benefit of following this behavior for the local council.
Niche outsourcing is on the rise
With so many companies and industries looking towards outsourcing as a savior, it is easy to see why so many companies are looking to become an outsourcing supplier. This will be good news for the firms who require these services but for those looking to make their way as an outsourcing supplier, things may start to become quite difficult. The increased competition pushes up the potential supply of this type of work and simple economic terms means this can make life a struggle for a number of firms operating in this field. The rise in supplying options will lead to a fall in the price that companies are willing to pay due to the shifting nature of the supply and demand equilibrium.
There is also the fact that some companies will be better placed than others to provide a service that consumers want. Perhaps these firms will be in a better location, will have a better track record or maybe just manage to market themselves more effectively, but in a crowded market place, many firms are able to position themselves in such a manner that they can scoop up a disproportionate amount of business compared to smaller firms. If the small firm is reliant on gaining so many outsourcing contracts, their business may start to look quite precarious.
This is when many smaller firms look towards niche markets and to determine if they can position themselves in an area where they can be competitive. Big is not always best and there are times when companies will require a smaller or more hands-on approach for their business and this is where smaller or less experienced companies need to focus on. Being a niche supplier may prevent a company from signing a multi-national deal with the biggest firms in the world but it may provide them with a platform for a long and successful future.
This has already been realized in Asia where many of the outsourcing exerts are warning firms that the need to grow into these niche areas is the key factor for a number of firms. With a greater amount of competition and the global recession seemingly bottoming out, it is going to become even more difficult for firms to stake their claim in a bloated market so being able to differentiate themselves from their rivals is the most important issue that a small or medium sized company can do.
There is no doubt that there is beginning to be light at the end of the tunnel with regards the future of the economy but this brings its own difficulties too. Many firms are now currently outsourcing because of the financial benefits it brings but if their own financial security strengthens, they will not need to rely on outsourcing as much. This means that all of the firms who made their name and recent money through outsourcing services may find that they are no longer able to attract as many companies. Diversifying the services made available will make any firm appear more attractive, regardless of the health of the economy.
UAE sees the green shoots of recovery
Up until a few years ago, the United Arab Emirates were the perfect example of a region on the rise with a great deal of money circulating in the area and new buildings being put up everywhere. This sort of confidence helps to breed confidence and it was an almost cyclical effect where good news breeds good news and continual improvements. This is exactly the sort of behavior that can be found in a boom period but there is only one problem with a boom period and that is the fact that it is usually followed by a bust period. Boom and bust is a very common economic term and one that is happening all over the world but when the bus part comes, it is very difficult.
This is exactly what has happened in the United Arab Emirates and the boom period of a few years ago has dripped away. This is great news for the construction industry which has been waiting for a positive sign from the economy and thankfully it now appears to be turning towards a boom period again. Perhaps it is too early for the green shoots of economic recovery but there is no doubt that people are feeling a lot more confident about their future now than they have done in recent times.
One of the people who are feeling very confident that things are about to change is the HR company Dulsco HR Solutions who have been making great moves to increase their levels of employment. The company believes that they are able to bring in excess of 1,000 people from all across in India. This extra labor should make it possible for the company to expand and there is plenty of scope to assist any company looking to outsource in this field. Dulsco are capable of providing employment areas with regards to cleaning skills, semi-skilled manpower tasks that will include plumbing, electrical suppliers, carpentry skills, drivers and any other office assistant type work.
This should ensure that there is a strong foundation for all sorts of construction work and many people consider that there is a need to speculate to accumulate. There is no doubt that one of the strongest economic theories is that there is a need to spend money whilst in an economic recession in order to stimulate the economy and breathe life into the nation.
With regards to the construction industry, it is obvious that money spent here can work very well with other driving recovery in other companies.
For instance, construction requires a lot of steel and metal in order to bring a building together until it is completed, so this means any drive for construction will help these other firms. Equally, employing a lot more people will impact upon the way that firms will run their HR services which could also lead to payroll and office administration staff being employed to assist in the running of the construction industry. All of these things mean that the United Arab Emirates may be ready to turn things around with regards to boom and bust.