Niyamath Parveez

Although the current economic situation has led many firms to re-examine the way they control their use of labor, it is not all been positive for outsourcing firms. The major players in the industry have been able to survive, picking up new clients and customers along the way. However, for smaller firms and individual freelancers, the story is not so happy. It is becoming a massive struggle for everyone to get enough work to continue. And of course, with the financial climate being what it is, there is a lower level of support for people in this situation.

Two industries that have been hit hard by these recent developments are business services and single person IT providers. It is extremely difficult to compete in a shrinking market place and even though some predict the recession is ending, it may not be soon enough. Many industry experts say there is a time lag involved for this sort of work and method of working. The PCG, a trade group for freelance working staff, have announced that their members are finding times extremely hard. It is said that just under 70% of the members of the PCG are finding work very hard to come by. This is a large percentage and indicative of a market that is still suffering.

The PCG, clearly trying to raise the spirit of their troops, made this statement;

“Due to the fact that IT contractors tend to work for big clients, such as financial institutions and government departments, it is more likely that in the recession they will shed contractors as a savings exercise.”

“There is a greater propensity for big business and large departments to outsource and look for the most efficient way of managing this procurement process.”

Their poll was carried out in advance of National Freelancer Day, which was not as happy an occasion as many freelancers would have liked. One issue that has affected Freelancers is the fact that other similar styled jobs have not been affected in the same way. Freelance journalism is a job that many would consider to be at the mercy of the economy and recession but compared to freelance IT, it has appeared positively bullet-proof. Seeing similar minded or skilled workers thriving whilst you are suffering is deeply upsetting and this has added to the malaise within the IT sector.

There are a great number of IT jobs which have to be completed onsite and in person, which means that a lot of tasks are unable to be outsourced to offshore locations. This would have raised the hopes of many working in the industry that jobs would be available but this does not appear to be the case. When times are hard and everyone is clamoring for the smaller amount of work there is, IT can be a very dangerous and difficult business. If you are considering a job in this field, it would be wise to consider it very carefully before signing up. Outsourcing is a great solution but sometimes there is not enough to go around.

With so much technology and IT functions for firms to consider, there are many ways to think about how to get the best from them and the budget available. It would be great for every firm to stay at the top end of technology and have all the greatest products but this is not possible. There are many instances where older generations and models are more than capable for doing the job they are asked to but problems can arise from using older models in certain areas. Whether there are networking or communication issues with different rooms or departments, there is a need for firms to review their IT capabilities and ensure they are managing their mix as best as possible. This makes perfect sense and should be considered as good advice by most firms but when a company like Deloitte informs companies to do this, it should be taken as great advice. And this advice should be heeded by local government authorities as well.

Deloitte made the recommendation that local councils and government bodies should look to outsource a great deal of their IT functions and capabilities such as call centers, data centers, networks and even desktops in order to get the best value for money. However, the same advice was followed on with the fact that these bodies should maintain control of their technology and strategy issues in-house. These steps should help to make the best possible cost savings to anybody as well as providing a great deal of benefits as well.

If existing bodies do not believe they have the staffs that are capable of managing the services and functions properly, they may feel it is easier to outsource. With capable training and strong communication between management and staff there is not always the requirement to go running to outsourcing but in some case, it does make sense. This is where a body really needs to weigh up the best decision based on their needs and their budget. It can be straightforward to think that a government body or local council would consider price to be the all important issue. After all, with tax payer’s money at stake, it is important to keep costs as low as possible. However, if obtaining a low cost leads to a poor quality of work being returned, the long terms costs are likely to be higher. This in turn will be in-effective and cause a greater degree of problems and issues.

By outsourcing the physical elements of IT but retaining a skilled staff in house, it should be much simpler for a body to be able to communicate what they need effectively. Having experienced IT workers on board should ensure the outsourcing firm can be talked to properly and misunderstandings should be minimized. This level should also provide a clear link between all levels of staff and outsourced, creating a more focused approach to the work. Outsourcing can be the savior for bodies’ woes but only if it is managed correctly.

It is no great surprise that many firms and indeed industries have to freeze their budget expectations. This is true not only for this year but for a few years into the future. This is because many businesses are waking up to the fact that they need to re-organize to stay afloat during these tricky economic times but even though the budget available is dropping, there is no reduction in the expectations placed on workload or staff members. This means that people have to work harder for less money, which isn’t really fair but is a sad indictment of the current economic crisis that the world is facing.

One such industry is the IT industry, who has been hit particularly badly with regards to budget cuts and rising expectations. Of course, demand for IT work is never going to diminish and as new technology advancements such as social networking integration and Mobile-Commerce come into play, the demands placed on IT staff are on the up. There needs to be a very delicate balancing act between budget and demands but thankfully there are ways for an under-fire firm to gain help and assistance.

When firms have to pare back their costs, an obvious target is labor and it is inevitable that many firms will look to lower costs in this field. This is invariably difficult for the employees who find themselves faced with losing their employment but many industries point to the benefits that outsourcing brings in reducing costs. What is uncomfortable for employees can often be vital for the executive or management level of a business. However, outsourcing IT work can also bring a great number of benefits by allowing firms to get a hold of modern technology at a much reduced fee and possibly operated at a greater level.

Of course, the difficulty lies in being able to find the correct solution to suit the needs of all parties concerned. What outsourcing deal may be right for one IT firm or department may be very different for another. This is very noticeable when it comes to analyzing data and figures. Analysis is the backbone of modern business and it is often left to the IT staff to obtain and break down the numbers. A firm may employ analysts to specifically pore over the data and draw inferences from it but without the IT staff doing the retrieval work, nothing can be ascertained. However, unless the analysts know the retrieval methods, the parameters and times-scales, analysis is useless. There needs to a relevancy to analysis and no two firms need to be the same in how they mine data or regard it. This means that when working with an IT outsourcing partner, there needs to be a clear lineation of how the work is being carried out. A firm may have a great reputation for working in this particular field but if they do not operate in the way the buying firm wishes to work, they are not a very good fit. This means that all of the money expected to have been saved by outsourcing will have been wasted with no benefit brought in at all.

There are a great number of activities that can be carried out through outsourcing and this has ensured that companies big and small have been able to reap the benefits. One of the great ways that firms can progress is through utilizing outsourcing as a way for them to address the areas where they currently lack the skills to undertake the task themselves. Some firms may not be able to spare the time or money required to train staff up in any real manner and this may cause them to be unable to offer certain practices. If the staff employed by an organization is very small, taking people away from their daily chores or activities may cause a business great difficulty so it therefore makes great sense to employ the services of outside help for this regard.

One of the areas where outsourcing has become very important is the medium of web design, something that not every firm has managed to get a grip of. The importance of having a web site, and a web design that is fashionable and attractive to consumers has become extremely important for companies. With the current business climate being so competitive, a firm needs to ensure they are able to compete with their rivals on every level. Whilst a competent website is no substitute for a great service and customer support, it can make a big difference when the margins between firms are tight. Therefore, a great number of firms may be missing out on vital sales by having no website or one that is below par. There may be a cost involved with outsourcing this task but the benefits of doing it properly will hopefully pay for itself in next to no time at all. Sometimes, the phrase speculates to accumulate is very true and outsourcing is a perfect example.
It is possible to learn all about outsourcing and this means that staff members can be trained up in it but even then, they may not have the natural flair or intuitiveness to build a great website with everything that is required. This is why it hiring someone with experience of this task can be a great idea for any firm. Many firms who are unsure about web design or a site may not be aware of the capabilities that a website has and therefore could be lacking many of the issues which would make a huge difference.

The first thing that people think about when outsourcing comes up in conversation is the financial benefits that arise from using them. Outsourcing is a tremendous way to lower labor costs, which is obviously something that appeals greatly to many managers and board members. There is a lot to be said for lowering labor costs but having the benefit of reduced cost whilst maintaining the quality of work that is expected from a top quality firm. An online presence has never been more important now than ever before so utilizing outsourcing skills to develop an online site is of benefit to all companies.

There is a very popular saying that it is best not to sweat the small stuff, and it is all small stuff. This is a good way for people to think about things in perspective and not to get too worked up over a lot of things in life which they would have no control over anyway. In business though, this is not so easy for people to do and failing to look after the little things can lead to a great number of difficulties for firms and businesses. For small firms, it can be extremely difficult, particularly if their core skills focus on a certain task or skill but there needs to be the ability to look after everything.

One good example of this situation would revolve around a firm’s IT capabilities and the need to stay on top of things. If a small firm sets up, they may not have the personnel or capabilities to ensure they are running smoothly but it may not seem like a major problem to them if they don’t. If they stay small that may be okay but if they start to grow and develop (which all firms would hope to do), they may soon find they are out of their depths. Of course, the problem is if it gets to this stage, the firm may have created a number of problems and difficulties in their IT work which may make it more difficult to enlist the help of an expert. Failing that, it may make it more expensive to employ an expert to fix it, which may mean that a small firm finds it is out with their budget to fix any IT issue that comes along. This is why it may make perfect sense for them to utilize an outsourcing service as quickly as possible.

There are now outsourcing firms who are offering capable and competent services for firms of any size, including self employed firms. It may not seem like a self employed worker will need much assistance when it comes to IT issues but email and internet links are vitally important to any business, even more so if a large proportion of their business comes from internet based sales or correspondence. Being out of contact for even a few days can be catastrophic for a firm, which makes the price they pay for expert help may be well worth it and will prove to be extremely cost effective in the long run.

Although the bigger firms will be able to deal with the market leaders and larger IT specialists, this does not mean that there will not be a potential supplier available for small firms. The outsourcing market is extremely competitive, especially in the IT industry, which means that there will be suppliers of all sizes. Many firms are happy, and indeed prefer, to work with firms of a small nature as it applies the, to be more hands on and can build a good working relationship together. Regardless of your size, there will be an outsourcing solution for all your IT needs.

Life must be tough when you are angry or stupid and unfortunately, it is even harder when you are both. The dumbing down of Western civilization has been happening at a great rate in recent years but in the United Kingdom, it has been extremely noticeable as what was once the loud minority is now giving way to the vocal majority. If it’s not crying over reality TV shows or losing sleep over celebrities, there has been a creeping tendency for the right wing element to rise again and this is shown nowhere better than the Daily Mail newspaper. Quite frankly, the paper is an abomination and nothing more than a shell for racist articles and hatred of all things non-British. With the current economic crisis, any business or organization that didn’t look to protect itself and ensure it has a future would not be doing its job but it seems that even this is not good enough.

The latest issue that has the Daily Mail readers and writers up in arms, clearly the BBC hasn’t put a foot wrong this week, revolves around the British Council and their plans to outsource over 100 jobs to India in order to reduce their costs and help them operate more effectively. The posts are in the finance and IT sectors and are being carried out as part of the larger cost-cutting exercise that the British Council is undertaking. On one level, it can be seen that these jobs are being lost to the British economy and it will be a terrible time for the people directly concerned in losing their jobs. However, this is on a purely personal level, overall, the benefit for the British tax-payer is one of greater benefit by the fact that these services will be run as efficiently for a much lower cost. There obviously has to be a cut off at some point and if all the jobs went this way, there would be a justifiable outrage but for a situation such as this, it would be hailed as a positive move in any company or organization.

Given that the department is concerned with the interaction abroad with other nations, there may well be ancillary benefits to be gained from outsourcing these posts to India which otherwise would not have been available to the British Council in their previous working style. Striking the balance between getting the best working relationships and opportunities to grow needs to be struck with looking after number one but this is something that is not taken on board by a number of people, particularly those who want to rail and rally against anything which may benefit foreigners.

With the perilous state of the economy, anything which shifts the job market is going to grab attention and make people notice it but there are always two sides to every story. It is unlikely you will see any stories or articles praising the British Council for their brave move in outsourcing a number of jobs but these are the moves that will allow them to continue providing a valuable service for many years to come. When it comes to outsourcing, there is always a need to look at the bigger picture and if you have a narrow outlook on life, this is something that you just won’t see.

When looking for new industries to back and promote, a government needs to look at the bigger picture to determine where their money may be better spent. Some posts are likely to have a more attractive knock-on effect and this is where the efficient governments and companies will be putting their money. Finding out which posts are more likely to lead to the creation of jobs in other industries or perhaps having a more positive impact on the economy is of great value and thankfully, there has been a large amount of research undertaken on this topic. For a developing country that may not have too many opportunities to get it right, this information can prove vital in their development. One such nation who would definitely benefit from gaining an improved return for their money is Ghana and the findings of the potential IT outsourcing benefits has been of great value to them.

It is said that for every single job that it created in the outsourcing of communications, a further four jobs in additional industries are created. These extra posts can be seen in training, catering, transportation or even real estate positions. It has to be remembered that the economy does not exist in a vacuum and each action is likely to have a reaction in other places. Some may be negative but it is vital for a government to find the positive aspects and then focus on these instances. Knowing that there is a huge demand for outsourcing in the communications sector should provide the confidence to place money and resources into training staff in these skills.

There are now many nations who are realizing that India is possibly reaching its peak with regards to outsourcing at a low price and any development it makes from now will be with regards to quality. That is of great benefit to many companies but equally, some firms are looking to achieve work of a reasonable level but at the lowest cost possible. It is possible for developing nations like Ghana to undercut the cost of outsourcing to India and thereby they can hopefully take a great deal of this action, which should help stimulate the Ghanaian economy.

There is no doubt that there needs to be a concerted effort in Ghana to bring the working population up to the skilled level of IT and communicational knowledge that would be required from firms who are looking to outsource their work. However, if a general decision can be made to move the nation towards working towards this goal, it will be easier to develop a training plan that will make this goal more achievable. In order for nations like Ghana to transform their economy, they sometimes need to make major decisions that will shape their future. There is no doubt that many companies have seen that outsourcing has helped to transform their fortunes, even during these tough economic times. If Ghana wants to develop a stronger future, taking steps to train their working population to provide a high level of IT outsourcing may see them make great advances in their economy.

When people think of Spain, they will likely consider the beautiful beaches, the stunning architecture and the triumphant football teams and tennis stars. Yes, Spain is one of the most popular and vibrant countries in all of Europe but it may have a lot more to it than you originally thought. There are a number of business opportunities and economies of scale effect which means that Spain is perfectly positioned to offer tremendous outsourcing benefits to other nations from all over the world.

There is a great IT infrastructure within Spain, with fully educated staff working at the cutting edge of technology. The close links and easy transportation / delivery methods to other European nations also helps to brighten the appeal of Spain and the links to South America should never be under-estimated. The historical and cultural links between Spain and Latin America are extremely well documented which would bring benefits to firms hoping to enter the Latin American market or even a Latin American firm hoping to bring work over to Europe. The benefit can go either way, which places Spain at the center of a link which could revolutionize the way that many organizations or companies do business.

With the current financial situation being what it is, it is only natural that people are going to look for ways to reduce costs and have their work produced to the same standard but for a lower price. Any company that does not seriously re-evaluate their working practices during the recession is taking a risk and leaving themselves liable to losses so now is an ideal time to re-evaluate the cost of employment. With regards to the IT sector, the employment costs of Spanish workers are roughly half of their UK equivalents, which immediately make the prospect of outsourcing to Spain attractive. The cost of labor in Spain is not quite a slow as the labor costs in India but it is not far off and there are many other benefits obtained from working in Spain which will greatly offset any additional cost incurred by setting up camp in Spain. The overall benefits, as opposed to what is obtained from the bottom line is where Spain manages to stand out from its rivals as it is able to compete on price and quality. This mixture is allowing firms to have confidence in the work that they are outsourcing and will leave them free to focus on other matters and issues.

There are Spanish firms doing well all over the world with the Santander Group and Zara being two organizations that have become household names across the planet so there are a lot of success stories emanating from Spain to allow firms to have more confidence before entering into a deal with them. Any outsourcing decision must be carefully considered before it is undertaken but with so many Spanish firms showing their strength and might around the world, working with Spanish firms on an outsourcing project need not be as daunting as some people would make it out to be.

You don’t have to be an avid news junkie to understand that the world economy is in a pretty bad place at the moment and that many people and businesses have been struggling to make ends meet. This has led to firms going under, people losing their jobs, their homes and their self-esteem and generally placed a lot of pressure on people and their relationships. However, in life, wherever there is a bad reaction, there can usually be an equal yet opposite reaction which sees people benefiting whilst others are suffering. This is a very natural reaction and nothing out of the ordinary but up until recently, it has been considered that outsourcing has been doing very well out of the current economic downturn and recession.

This has been due to the fact that firms have been so desperate to cut costs and reduce their overheads that they have looked to reduce the costs of labor and outsourcing has given them a fantastic opportunity to do so. The chance to save money whilst having the same, if not higher, quality of product or service is a no-brainer in these troubled times and this has led many people to believe that outsourcing was one of the untouchable industries, striving onwards in a time when destitution came knocking at the front door of many companies and organizations.

However, the further reductions in the budgets and spending capabilities of many firms in America is now starting to creep towards India and the outsourcing firms based there are starting to feel the pinch. This is made even harsher by the fact that so many new countries and offshore firms are looking to take some of the outsourcing market as well and they are able to undercut the prices offered by Indian firms. All in all, India’s outsourcing firms are starting to suffer in the way that they hit a number of areas in recent years and if the market continues to struggle, there could be some difficult times ahead for the India based outsourcing firms, especially those specializing in IT.

The IT industry is a strange one as it relies very much on continual development and progression and failure to keep up can be disastrous for the long term future of a firm or business. However, as budgets are slashed, many firms are considering it to be too much of a risk to place all of their IT needs in an outsourced basket. Some of the thinking behind this decision lies in the fact that all of the firm based employees would have an easily defined lack of knowledge about the current developments in IT and if the firm had to take control of their own systems in the future, they could be woefully short of the knowledge needed to perform the task successfully. This has caused further pressure on firms to limit the amount of outsourcing activities they undertake, which has had an even bigger negative impact on the outsourcing firms based in India. India is still the home of outsourcing but if the economic downturn continues and the countries snapping at their heels keep on improving, who knows how long that will last for.

The fact of the matter is, a number of years ago, a great number of firms wouldn’t have given the concept of outsourcing a second thought. When the market was booming and things were on the up, there can be a tendency to take an eye off the bottom line and bask in the upward trend of the market. Sure, the profits but they could have been greater and at times, vanity projects led to companies keeping a hold of all their tasks and duties as opposed to considering outsourcing to get further financial benefits. Now that the market has changed rapidly, firms are desperate to grab whatever they can, which places the outsourcing firms in a stronger position and may see the original firm left with a deal that is just enough to satisfy them but nothing more. As so many firms are looking to outsource their work and save money on labor costs, there is an inevitable movement in the supply and demand relationship which gives more of the power to the firm providing the outsourcing. The current credit crunch means that an outsourcing firm can’t be totally flippant with regards to obtaining work so they haven’t achieved full power but in these tricky times, the outsourcing firm has the chance to get the better end of the deal.

This means that the firms who took a risk and moved into outsourcing when the market was vibrant are now reaping the benefits of being an early mover. They have managed to build up reputations and relationships and these go a long way to convincing further potential clients that they are the right people to be working with. Of course, there is always evolution in this industry, there is even revolution with the onset of aspects such as cloud computing and this may allow new entrants to the market to gain a lot of headway and income but by and large, the firms who have proven their skills in the outsourcing area will find themselves in a tremendous position to bring in a lot of work.

There is always a pressure for the outsourcing firm to move with the times though and a reputation can be lost very easily and this is particularly relevant in one of the most important outsourcing markets, IT. The IT industry has greatly benefited from outsourcing both local and offshore as firms have not only reduced their costs but have managed to vastly improve their skills and knowledge base by hiring experts who have experience of working with many different firms and systems. This makes it easier for these representatives to keep abreast of the latest developments in IT which will bring a greater degree of benefit to the customers and end users. An IT outsourcing supplier would be advised to re-channel a large amount of profits in training for their staff and ensuring they keep up to date with the latest developments. This redistribution of profits should be considered as an investment to give the firm a better chance of obtaining outsourcing work in the future.