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Outsourcing could lower Indian mobile phone costs
In these troubled economic times, short term deals which look great may not be the best thing in the long run. Companies obviously have to work harder to appeal to a customer base to make sales but with so many firms in the mix, how can they compete? One way that many firms decide to entice customers in by is through lowering prices and this gives consumers something to think about. Firms are struggling but so are consumers so any deal which threatens to slash prices and give consumers more for their money is sure to look good to many people.
However, the firm needs to think if these low prices are sustainable. If not, there could be even bigger trouble ahead if they stick by the low pricing model. Yes, the opposition may be getting blown away by this tactic but income is not sufficient to match the outgoings, the final outcome is only going one way. This will be against the firm so whilst short term price drops can be of benefit, the longer term prospects have to be based around offers that are more substantial. Of course, if a firm could lower their costs, they may be able to sustain lower prices.
The market for mobile phones in India is extremely competitive and with the population size, it is evident why so many firms are keen to grab a slice of the action. There will be niche areas and products to produce which could provide a slight advantage but cost is the most eye-catching area for consumers. The price of the mobile phones or the tariffs are opportunities to snap up market share but another way is to lower the cost of each call. This is what is currently being done by many of the operators in the market but not all think it is the best solution.
Still Bharti, a huge player in the Indian mobile phone market with over 110 million mobile customers in the nation, have announced that they plan to lower their costs through the medium of outsourcing. This is a tactic that has been used all over the world and is recognized as a major factor in the economic growth of India in recent years. The country has welcomed outsourced jobs from all over the world and this has given the Indian population the opportunity to economically thrive and prosper in harsh times.
The decision by Still Bharti to outsource has been made with the company confident that others will not be able to sustain their current low pricing policy. Making savings within the production side of things will give Still Bharti a stronger chance of lowering their overall costs, and providing a more sustained low level of pricing to the consumer. Thinking with respect to the long term is a major separation between the firms that succeed and the firms that lose out. Having the confidence to think of long term shows; Still Bharti is likely to be around in five years time.
