Niyamath Parveez

The most natural jobs provided by outsourcing firms would be based around the call center industry but there are a whole range of jobs that can be adapted to work within the remit of outsourcing. Whether it is a service industry or a production based industry, there are possible and plausible ways to ensure that the jobs is undertaken and completed to everyone’s satisfaction. Given the current concerns over finances and economics, it is not surprising that employers and firms in industries which were probably considered safe are now looking at ways they can move their work force overseas. Offshore outsourcing is becoming an attractive proposition for so many industries and the latest shock moves could affect the lawyers based in London. When it comes to outsourcing, the general public usually has a degree of sympathy with those people who have lost their jobs but lawyers are a breed apart and they may not garner the same level of support as many other employees would.

An announcement from one of the biggest law firms in India, FoxMandal Little, has put London solicitors on red alert and anxiously waiting news about their own future. The Indian firm has received a number of jobs and offshore postings from the UK in the past year and they believe that the amount of work that they will receive in the next year will be double the current figures. A lot of this belief stems from the fact that representatives of the firm have held meetings with around 100 City firms in London, each of them looking to replace around 100 workers with work being undertaken in Mumbai and Delhi. The basic math of this situation would see 1,000 jobs in the City being taken away from UK workers and moving to India.

It is believed that as many as up to 3,000 workers in India, currently employed as administrative staff or corporate lawyers will soon end up on the payroll of London based firms. This will be of great benefit to the London firms through the reduced labor costs they will have but obviously they are confident there will be no noticeable dip in quality. Given that law and the legal world is such a competitive industry, there is no suggestion that a firm would be able to survive if the quality of their services dipped by too much. Competitors would be able to step in and offer a greater service to clients and take customers away. Therefore, there is an obvious level of satisfaction with the law services being provided by Indian law staff, which only bodes well for Delhi and Mumbai’s progress in the future.

The current figures for outsourced law jobs in India stands at around 10,000 people so there is a sizable amount of lawyers already working on outsourced jobs in the nation but there appears to be much more to come. Many people keep expecting the Indian outsourcing bubble to burst but with statements like this, it can only be likely that India will remain at the top of the outsourcing tree.

One of the most important elements of outsourcing has come about due to the rise of call center culture. The rising importance of customer service and offering people the chance to interact with firms has made call centers essential in so many industries and lines of business.

One American state has decided that enough was enough and that the off shoring outsources tasks was beginning to become a drain on the local economy. It can be seen that as a number of jobs were lost from the local economy, the level of local expenditure would start to contract which would lead to a further reduction in sales. There is a cyclical effect in the economy and anything which causes a downturn is unlikely to be the only affected factor. This has led to many states having concerns about call center workers but not many have been able to do too much about it. The benefit of offshore outsourcing comes from the fact that the level of wages that are able to be paid to the workers are much lower than what they would be paid in most countries. The Western world has long been utilizing the difference in cost of living and wage levels to ensure that they can get cheap labor but there is a now a backlash against this form of business and there are steps to be more proactive with regards to outsourcing.

The state of Tennessee is employing a number of local citizens in a funded call center in an attempt to stimulate the local economy and to build some confidence in the local region. For those people who have the jobs, it is an obvious boost bit there are many questions being raised about the overall suitability or indeed benefit that this move is bringing. The state is clearly funding the jobs heavily because if a firm was really keen to outsource their work, they would offshore with no problem at all so there needs to be an incentive. This means that the taxpayer’s money is being utilized to make this deal more attractive to the firms but even with that in mind, it may still be of benefit to the local economy. Although it is costing taxpayer’s money, if it helps to circulate expenditure and develop spending and local consumer confidence, it will be money well spent by the Tennessee state.

Many people are also angry that whilst there are some jobs up for grabs, many more appear to be heading towards India and away from local people who really need them. The current unemployment levels in Tennessee are extremely high, amongst the highest in the whole of the United States, and it is apparent why local citizens would want more opportunities but of course, it is not always as easy as that.

To be a properly efficient call center operation, there is a need for training to ensure the staff are skilled to the right levels and for some companies, the lure of Indian offshore call center staff is still greater than using local sourced workers, regardless of the benefits it may bring to the local economy.

Outsourcing usually focuses on topics like production on call center work but many people are becoming aware of the fact that outsourcing can be used for a whole host of issues and matters. Given the fact that the financial status of the world is in a particularly bad place, it makes sense that all firms and organizations are looking for ways in that they can improve their financial status and ensure they safeguard their future. Even banks and financial institutions are aware of the possibilities that can arise from using outsourcing and given the amount of problems that they are facing, the solutions offered by outsourcing may be enough to allow companies to maintain a secure base.

One institution that is seriously considering outsourcing as a solution to their problems is the Hypo Real Estate Group, who has been blighted by bad loans. One of the major elements of the recession is that people have been unable to repay loans or cover their debts properly and this means that many banks or banking institutions find it more difficult to claim the money that they are owed. This money can always be reclaimed, with the full extent of the law behind them but sometimes it can be very time consuming and costly to pursue the money as much as it needs to be. This is why some firms are now thinking that they can earn money quickly but outsourcing these bad debts to other firms who will use their staff and time to pursue the customers.

In doing this, Hypo Real Estate Group will be able to receive a quick fix cash boost and they will also be able to reduce the number of staff they need to employ. It is said that the firm will be able to reduce their employee levels by around 1,000 people in two moves, which in these tough economic times will be able to provide a benefit to any firm and this is what Hypo Real Estate Group are hoping for.

As more and more people find themselves falling into deeper debt, the industry where these loans and debts are uncovered are going to become extremely lucrative but obviously there is a human aspect where firms have to be aware of how they would viewed. Chasing after bad debt during these tough economic times is not going to give a firm a positive rating with the general public and therefore, many may be looking to get away from this sort of business. This means that being able to outsource these measures can be of great benefit to any firm, even when avoiding the financial aspect of the task at hand.

Therefore, with so much to gain for any banking firm or institution for issues like this, it doesn’t take much consideration for any organisation to think about outsourcing and there is always likely to be a supplier willing to take on this work because the guarantees of future income. It may not be a popular job but with money hard to come by for so many people, it is a task that is going to be in demand for many people.

One of the reasons that major cities and the major companies around the world are so successful is that they are able to draw on a whole wealth of experience and different cultures to further their business or development. It is obvious that different people have different skills and attitudes which can be utilized with other backgrounds and work ethics to combine a well oiled machine that manages to produce services or products of an extremely high standard. The multi-national companies around the world have been able to draw on this diversified and varied workforce for years but with the modern trend of outsourcing, smaller companies are now gaining the chance to reap the benefits of a workforce that hails from all four corners of the globe.

Every individual person has their own personality and mannerisms but it is noticeable that certain nations have a workforce that shows particular traits or can call on many decades or centuries worth of experience in a particular field. An example would be the Russian workers or those from the former Eastern Bloc who have learned much about scientific research and development due to the way their government funded these traits. Similarly, people from the Philippines have an extremely likable and relaxed manner, as well as advanced language skills which means they are perfectly suited to handling call center work and customer enquiries from America, the United Kingdom and all other English speaking nations.

Using the skills and knowledge base of workers from different nations has long been a strong part of the manufacturing world with world-wide shipping and distribution services making a global market-place capable of taking advantage of any benefits had by using the different skill sets. Now, the same opportunities are being afforded to service based organizations and this is expected to be a growth market for many years to come. With the huge differences in wages around the world not always equating to a drop in standard and quality, many firms are realizing that they can achieve a top quality service at a far greater price by outsourcing their work around the world. Given the current state of the world economy, a firm who did not attempt to make this sort of decision would be bringing danger upon themselves. Any situation where people may lose their jobs is always going to be a very emotive subject but from a purely business sense, outsourcing to offshore companies is a tremendous way for firms and organizations to improve their balance sheets and possibly safeguard their long-term future.

And as everyone experiences the need for jobs and to maintain buoyancy in their market, the competition between these nations to secure the outsourcing work is becoming more intense, which ensures there are even greater deals for firms to find but choosing to outsource. Whether it is tax breaks or use of premises and property at practically throw away prices, local firms and governments know the benefit of enticing offshore outsourcing work to their country and to their people. This should mean that any firm which has the ability to outsource their work needs to at least study the possibility of doing so.

After having considered the what, the who, the where, the when, the final factor of the 5 W’s for a firm to consider is they why? This may seem like a fairly obvious question to ask a firm why they wish to consider outsourcing but it is an important question to ask. Sometimes when many firms in the industry are undertaking an action, the smaller or more marginal firms in the industry may decide that they need to be doing it to. It doesn’t matter that the other firms may have taken due diligence in considering outsourcing as an option before undertaking it, in a competitive industry, there are some companies who will always react to what their rivals are doing. This may allow them to hang onto their coat-tails but if the leading firm has a very different set of circumstances to their rivals, there may be no requirement for other companies in the industry to undertake outsourcing.

Outsourcing is a fantastic resource and one that has brought a great deal of benefit to many firms and organizations but it is not the right option for everyone. Regardless of what industry experts say, there will be a number of companies who would be better off served training their workforce and providing a better service in house as opposed to outsourcing their work but this is up to every firm to decide and work out.
If a firm wants to undertake outsourcing, they have to be fully aware that it is in their best interests and will meet the criteria of what is required to progress their business. If a firm has a call center facility, it may seem like a great idea to outsource the work to India and have the work carried out for a far lower price but will this suit the customer needs? It has to be considered what a customer expects and wants when they telephone a call center and if they need in-depth knowledge and local advice, using an offshore outsourcing capability may not be the best option for any firm. This would require a full evaluation of consumer needs and only then could a company make a proper decision about the merits or negative points about outsourcing their offshore call center requirements.

All of the factors discussed are very important when considering if outsourcing is the right option for you and no matter the size of the firm or their current financial status, there is a need to undertake a proper level of research about the feasibility of outsourcing. With so much positive talk about outsourcing in the media, it is inevitable that many people will think that it could be the solution to all of their problems but it is not as easy as this suggests. Every firm or organization is different and it would be impossible for a one size fits all solution to make everything work. This is why any firm who wants to use outsourcing to help them improve their service should be encouraged but they will also need to do a serious amount of research to ensure they are making the right decision for them, their workforce and their customers.

Outsourcing is done for increasing profit margins. That is how things should be. This simple condition can be fulfilled by paying service providers wisely. When a company tries to outsource one or more of its services, there is no lack in the number of service providers jumping at the opportunity. But are they really able to provide cost-effective services? This is the first question that should be answered before the deal is sealed between the company and the service provider.

Many outsourcing service providers boast of being able to provide superior service at close-to-ground rates. While this may be true for certain providers, for most it is far from the truth. Service providers with less than efficient employees may end up eating into the profits of the outsourcer in the long run. Not a good scenario, and certainly a situation that can be avoided by screening the provider carefully prior to confirming the deal.

So, what can outsourcers do to ensure that they get their money’s worth from the providers? There are no fixed rules to this; the methods vary greatly between outsourcers. Some put stress on the overall quality of service that the provider maintains, while others look at the list of the value added services that the provider is ready to provide for free. But some common points seem to be there at all times, such as:

1. Rewarding for savings – One of the best things to do is to add a clause to the contract that the provider will get bonuses depending on the savings it can help the outsourcer to make. This is a way of making sure that the provider works hard towards providing quality service. For instance, a popular firewall manufacturer a few years back outsourced its process of launching a help site for its customers. The manufacturer made it very clear to the provider that the payment would be more if the quality of service was good. Within a couple months, calls for support made to the call center of the manufacturer were cut down by as much as 15%. This is the kind of service that most outsourcers should expect and insist on.

1. Making them do the hard work – Outsourcing service providers should do the job as a whole, not in parts. The internal divisions of the outsourcer should not have to do anything to plug holes left by the provider. The provider’s fees should be calculated based on the complete job, not segment-wise. That way the provider will be bound to provide the complete service in order to expect any payment. In the example mentioned in point no. 1, the provider did the hosting of the website, designed the entire interactive site for the outsourcer’s customers and even provided demo of the entire system to the outsourcer.

These two steps can help an outsourcer choose the perfect provider for the services that it has outsourced. Only through maintaining screenings like this can an outsourcer hope to get superior quality, cost-effective service.

Many top-ranking US-based companies outsource their business support services to offshore call centers and BPO-s. While this is certainly a good move that helps in cutting costs, the risk of having a negative impact on the reputation of the company in the long run cannot be ignored. These days, US-based customers and clients are pretty choosy about who they are getting the support from. The thought of having someone from outside the country to help them from their own problems is not a welcome feeling for a large fraction of them. This brings us to the topic of discussion – the caveats of outsourcing. A couple points are of particular concern here, which are:

Differences in accent – Many a times, US-based customers are agitated when they hear a foreign accent from the other side of the phone. This is often countered by call centers by teaching their employees how to speak with a neutral accent. This is certainly a good measure, but can be carried out effectively only in countries like India, where knowledge of English is widespread. But in countries like China, where the level of proficiency in English language is usually lacking among the general population, this can pose to be a serious problem for call centers. So, the American companies who outsource their support services to call centers of these latter countries risk losing a good portion of their reputation in the market in the long run. They may be able to save a chunk of their everyday costs, but the tradeoff is usually not worth it.

Difference in time-zones – This is another serious problem, often encountered by US-based companies when outsourcing their support jobs to offshore companies located on the other half of the globe. The time difference, often around 12 hours or more, means that most of the call center employees would have to work in night shifts. This can wreak havoc on the sleep-wake cycle of an employee, affecting his/ her health in the long run. Moreover, a call center employee, feeling sleepy during the night, can accidentally make mistakes when answering a customer’s queries. To add to the woe, the “flexible” shifts in which employees are forced to work in most call centers are often too demanding for even some of the healthier employees. The flexible shifts require an employee to work in night shifts in one week, and then in the day shift for the next. This type of erratic work pattern often results in a strong attrition rate among the employees. In order to retain high performers within the organization, call centers often end up paying unusually high wages to them. This results in an automatic increase in the cost of service of the call center, adversely impacting those companies that outsourced the business or support process to them in the first place.

These two are among the matters of grave concern for US-based companies and call centers alike. Sadly, no solution has been found till date that can effectively circumvent these two problems. The BPO industry in Asian countries will survive for now, but unless these major problems are taken care of effectively, the future does not look good for these sections.