Niyamath Parveez

At this time of year, many people are thinking about switching to outsourcing as a means to improve their working capabilities. This is extremely true for small businesses where one person may have to do a great number of jobs. There may not be the opportunity to employ a lot of other staff on a full time basis but having some help at certain times can make a big difference to how the organization works. Seasonal work can also encourage the use of outsourcing and one of the most important times of year is the Christmas and New Year period. Therefore, who else would benefit from outsourcing more than Santa Claus?

One of the most important things that Santa Claus has to do is to make a list of who is naughty and nice. Given that this list is expected to contain the names of every child in the world, it is going to be a very long list. This may be something where there is the scope for outsourcing. If Santa Claus was to hire someone to assist with list making, it may free up more time to focus on other areas. There is also the fact that Santa is required to check the list twice, so having an extra pair of hands around to do this should make light work of the administration elements of the job.

Don’t forget, Santa does have a lot of assistance from the elves who work in his grotto throughout the year making toys for children. However, with the harsh economic climate, it may well be that Santa will make it easier for parents the world over by utilizing outsourced workers to help make the toys. It will be harsh on the elves who make the toys but outsourcing should see the labor costs of Santa’s production reduce dramatically.

Another major cost and time expenditure for Santa Claus comes in the fact that he personally undertakes all the travel himself in one evening. Using the services of worldwide outsourcing firms would make it much easier on himself. At the moment, there is a great deal of waster occurring due to the fact that Santa does not have the time to stop at every house and enjoy the treats children have left out for him and his reindeer. This means that parents will have to eat these goods themselves or throw them in the bin before the children wake up. With so many people concerned about natural wastage, using outsourcing can make it easier to give every home a little more time.

Equally, the wear and tear on the reindeers is likely to be causing them a great deal of damage so outsourcing the distribution element is likely to make life so much easier for Santa Claus and will lower replacement costs. The cost of ensuring that your travel vehicles are in fully functioning order can be very expensive so taking better care of your travel plans could save money in the long run.

Christmas is a joyous occasion but Santa Claus could make life much easier for himself if he undertook outsourcing as an option.

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.

At the end of a busy working week, it is inevitable that people will feel the strain of working in an office. The daily commute alone would be enough to see a lot of employees at the end of their tether and the weekend cannot come quick enough. The problem is, the weekend then runs out all too quickly and it is Monday morning again. The short days of freedom makes it hard for people to feel as though they are enjoying themselves. Whilst people are unable to be able to give up work completely, there is an opportunity for people to work from home or set up their own business.

One thing that people can sometimes overlook when trying to set up a home business is the financial and taxation element. If the new business is based upon accountancy and taxation issues, this may not be an issue for the start-up firm but for all other firms, this is unlikely. Therefore, there is a huge need for expert advice and assistance to ensure that the numbers add up. It can be very difficult to think of all the sums you need to take care of and this is where outsourcing can be very helpful.

As well as people wanting to set up their own firm at home, there are countless many people already working at home providing services. Many of these are able to provide services and features which can bring a fantastic benefit to any emerging business. This is due to the interest in outsourcing as a way of making money. There are obviously many outsourcing firms based around the world who are able to provide these services but there are many individuals working in this field too. This can be seen in the number of individuals who are now providing outsourcing services.

This has led to outsourcing becoming an important industry to people who are looking to set up their own business. Many people may consider that they do not have any great skill that can be used for other people but this could be a false situation. Word processing skills are always in high demand and it may be that someone who is keen to work in the administration field could offer great services for people wherever they may be. There are a number of freelance and outsourcing sites which can give people an indication of what work is available and what work is requested from firms.

If you are at the stage where you are thinking of leaving your job and setting up a new business, working in this field could be very advantageous. The demand for this sort of work is only going to rise, giving the perfect opportunity to set up all by yourself. Whether you need the outsourcing services or you are hoping to provide these services to other small businesses, this could be the answer to all of your current financial problems. The recession is likely to run on for a while so make the best of your skills and opportunities

There are some industries where people have a lack of respect for the people working in authority but would be very lost without them. The most obvious one is the police and law enforcement agencies that provide safety and security but a comparison can be made to lawyers and solicitors. Whenever people are in potential trouble and need representation, there is a huge need for solicitors to provide the advice and assistance and perhaps even representation in order for justice to be best served.

Sometimes it is not even about earning a not guilty verdict for the person who has been charged with the crime. Justice is a wide term and ensuring that they receive the right punishment for the crime they committed is as much as what solicitors do. Of course, the fact that they make huge profits and charge such a large price for their actions is what annoys a great number of people. However, if you listen to the lawyers and solicitors, it is not as simple or as straightforward as this.

They are quick to inform people that they too have been affected by the economic recession that is blighting the world at the moment. Everyone is suffering and it makes sense that even lawyers would be struggling to keep their income greater than the costs. If they are unable to increase their income then the solution must resolve around lowering their costs. This is sometimes done by making any administration staff redundant but a firm needs to have administration in place in order to be able to do their job. With so many different cases to take care of and so many court visits to remember, a law firm requires good administrative skills to perform well and provide their clients with a quality service.

This has been made possible by the rise in outsourcing firms who are offering a provision of law back room services. The great thing about these firms is that they are usually ran and employed by staff who have a great deal of experience in working in the law industry which means that the work is being carried out by skilled staff. This is a tremendous boon and ensures that the law firm will have peace of mind about the work that is being carried out. Saving money is obviously very important but if the quality of the work being carried out is extremely poor then there would be no benefit in carrying this outsourcing task.

Recent weeks have seen three reasonably well known law firms state their intention to turn towards the world of law firm outsourcing. Hammonds, Travers Smith and Halliwells have all intimated that they intend to look into the possibilities of outsourcing. There is even the chance that this work may be outsourced all the way to India as the benefits of offshore outsourcing are able to provide an even greater benefit to law firms. There will obviously be displeasure at the UK losing jobs but that is not the concern for the firm at hand.

Whatever major players in an industry do, it is inevitable that the smaller firms in the same competing field will look to do also. It is not merely a copycat exercise aimed to emulate the big firms but quite often, there can be very logical reasons for doing so. Firstly, if the major firms take to a style and it becomes a success, it has proven to be a winner in their field. With any advantage or success being pored over in great detail these days, anything which looks like working will be analyzed to death and this enables firms to see the exact details and how to copy the success stories.

This is very true for outsourcing and many small firms have been able to copy the procedures and methods utilized by big players in their field. It also means that there may be ready made suppliers desperate for work and they will be keen to work with the smaller firms in the industry. If two outsourcing firms are competing for a contract with a major player in an industry, only one is going to be successful. This means that the losing firm will have went to a lot of time and effort, including possible set-up costs for no benefit. One way to recoup these sunken costs is to target similar firms who may also be able to benefit from outsourcing. The size of contract may not be the level of the original one on offer but sometimes any return on investment is better than nothing and this will see firms getting a good level of benefit.

Sometimes, the economic pressures of trying to stay in contention with other firms can lead to firms adopting similar procedures and a very clear example of this is happening right now. Bharat Sanchar Nigam (or BSNL) has recently come to the decision that they are looking to find an outsourcing solution to their management structure problems and issues. They are also looking for external assistance in maintaining their towers and their large amount of cable networks. Although firms should always be looking to better and develop themselves these decisions have clearly been impacted upon by other players in their industry. Private companies such as Bharti Airtel or Reliance Communications, two huge firms in their industry have achieved a great deal of success with outsourcing moves and this has led many similar firms to re-evaluate their own processes.

To outsiders, this may seem like a move that is just following the line from bigger firms but when you consider that industry experts believe this decision will save around $1m for BSNL, it is very apparent why the firm is deciding to act in this manner. In these harsh economic times, this sort of money has to be pursued strongly and any firm in a similar position would be doing the same. There can be a lot of discussion about the benefits of outsourcing but when the bottom line is so obvious, it is hardly meriting a lengthy debate.

There is no doubt that India has led the way in recent years with regards to outsourcing, so much so that many other nations are looking on very enviously to what India has achieved. This of course, means that these other nations will be looking to emulate the positive aspects of India’s work, find the negative aspects or chinks in their armor to exploit and push for outsourcing business of their own. This will no doubt ensure that the outsourcing agents and suppliers within India will need to be prepared to fight aggressively in the years ahead but there is every indication that they will meet this challenge. Having worked so hard to develop this reputation, it is unlikely that the firms in India are willing to let their outsourcing crown slip so easily.
However, it will not be easy for India to remain the number one nation in the world with respect to outsourcing. One of the reasons that India managed to be so attractive to a number of nations came from the fact that they were able to offer labor costs at a much reduced price. Of course, there are now a number of nations who are looking to provide outsourcing work at a lower rate than what India can sustain, so this will be an interesting battle-field. It should be remembered thought that outsourcing is not just about finding the lowest price supplier for a business. Cost is going to be an important factor, now more than ever given the economic recession that is plaguing the world but if low cost equals’ poor quality, then there is no benefit to any firm and they will find their sales suffer because of this. This is where India needs to remind firms who may be tempted by a lower cost offered by other outsourcing firms from smaller countries that quality of work needs to remain a factor.
So, with all of this in mind, many people are still positive that outsourcing is going to remain very popular in India and will help push the nation onto greater developments in the years to come. There are predictions that the size of the outsourcing in India will increase by five times between now and 2020, with a total of $225 billion expected to be the final sales figure. Given that so many companies are tightening their belts and even experiencing job losses and closures, this is a hugely positive statement to be sending out to the world. Much of the reason for this growth is expected to come from firms and industries that have yet to tap into the outsourcing market as a means of reducing their labor costs. It is fair to say that the outsourcing capabilities on show so far have not scratched the surface of what they will eventually be capable and this is why there is a huge drive for change within the outsourcing industry. Given India’s experience, it is very likely that they will be able to remain on top of the outsourcing demand for many years to come.

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.

When it comes to taking advice about outsourcing and business activities, it is good business practice to listen to the advice of the market leaders and respected firms. Their experiences may not always be the same as what the smaller firms may have at their disposal but where the major firms and market leaders go first; smaller firms tend to follow on. Therefore, when a well respected firm releases figures and opinions about outsourcing, it is inevitable that many people will listen to them and follow their advice. This is the current situation where Capgemini have announced the findings of a survey they have undertaken with regards to outsourcing in an economic downturn.

The current economic climate is forcing a great number of firms to reconsider all elements of their business and to look towards making savings. One of the places where firms will instinctively turn to in the hope of reducing their labor costs is with outsourcing. The fact remains that outsourcing is extremely important but only if the quality of the service remains high. Sacrificing quality is the one thing that will seriously damage a firm more than labor costs that are a bit too high. Thankfully, there are many great outsourcing firms and options available for firms which should see them get the best of both worlds. This rings true for many industries which is what Capgemini tried to emphasize in their findings.

There are many different areas and departments within a firm but some of the most important include IT, financing, accounting, HR and procurement. All of these are hugely vital for the everyday running of an organization but may not be the most important for the end user. This means there could be the scope for the firm to outsource these options without compromising any of their other services or products. Depending on the needs and how hands-on the outsourcing company has to be, it may well be that offshore outsourcing is a great option for many firms. This may not work for the IT services, particularly if the IT firm is required to fix any problems on site but it can be seen that many of the HR jobs could be completed off site.

A lot of this due to the computer based and automated systems and styles that many firms use for HR. If a firm is growing in size, there may need to be an integrated system to handle all of the requirements for a company. This can be very costly and would also require an expert involved with the set-up of the system. If no one within the company has the expertise for the role, it could become extremely costly to employ one so it makes sense for a firm to look to an outsourcing solution to this problem.

This is why executives are actively promoting the idea of outsourcing to their managers in the hope of reducing labor costs whilst maintain a great level of service. With so many difficulties in the modern business world, any advantage needs to be grasped and this is what outsourcing supplies.

The recent downturn in the economic climate in the past year or so has led to many companies facing a disaster with regards to income, profits and share prices. With so many big names firms around the world being affected in this manner, it is hardly surprising that some firms problems have been overlooked but there are definitely some directors and managers with big decisions to make. One of the firms who have had a torrid time of later are NEC Electronic Corp but they have at least made some moves to ensure the future is brighter for them.

The last financial year saw NEC Electronics Corp suffer a huge loss in the consumer demand for their semiconductors and this was a huge factor in the losses the company suffered. When a large part of your business plan suffers badly in this manner, it can affect the entire business group and this was a major cause in the downturn for NEC. However, the firm has announced they are all but certain to turn to outsourcing to assist with the production of semiconductors. These semiconductors will be used for consumer electronics and outsourcing firms, either locally or offshore, will be drafted in to assist with the production. Using an outsourcer is a tremendous way to offset the fluctuating demand that can arise in consumer products these days and this move should ensure that NEC Electronics Corp are better equipped to handle whatever market forces may throw at them.

One of the greatest components of outsourcing comes in the form of Just-In-Time, a production method developed in Japan and which spread around the world in the 1980s. Being able to bring in ready made chips at the point they are needed has made it easier for a firm to manage stock control properly and to ensure a lesser amount of their money is tied up in stock. Working strictly to JIT may cause some problems if the delivery methods cannot be guaranteed but by and large, this method is said to be one of the best for producing great results in outsourcing. The production of a product like a semiconductor is perfect with regards to outsourcing and there is no doubt that a great level of success can be had by teaming up with a credible producer. Given the fact that chips like these are in demand, there will be many outsourcing firms who have managed to generate a good working knowledge of how to make the best chips possible which should ensure that the quality is high too.

It is important to remember when trying to outsource the production of products that the cost cannot be all that really matters. There must be a focus on the quality and durability of the product and being able to guarantee this means that all parties will benefit in the long run. Outsourcing work to reduce labor costs may obtain good results in the short term but poor quality is never a long term winner. NEC Electronics may have suffered a bad year but turning towards outsourcing should see the year ahead become much brighter.

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.