Niyamath Parveez

Any firm that can announce healthy business figures in the current climate is definitely doing something right but these results have to be taken with a pinch of salt. No firm is going to come out and tell the truth about their status if they can fudge the situation a little but for those firms who are required to lay their figures on the line for public perusal, it gets a bit harder to manipulate the findings. Not saying it is impossible but firms that can put actual figures to the positive message they are sending out to the general public should be believed a bit more than those who just paint moonbeams and spout empty platitudes.

The construction industry is in a state of flux at the moment and many are unsure about what will happen to them. The companies who have secured long term contracts or are able to provide public body work are likely to get through the recession okay but for all other firms, there are bleak times ahead unless serious action is undertaken. One of the major building and engineering firms in the UK at the moment are Carillion and they have recently announced operating profits that stand in stark contrast compared to the returns and results of many firms in the industry. This is exemplified by the fact that Carillion managed to deliver a high level of growth for the opening half of 2009.

This success is shown by the bottom line figures of lowering its borrowing by £150 million and some of this can be aligned to the fact that the firm raked in just under £90 million from the sales and outsourcing of their IT department. Carillion are not the only company in the world to find that taking advantage of the outsourcing opportunities afforded from outsourcing can make a massive difference to the labor costs of a firm without having a negative impact on the quality of work. The fact that the quality of work can remain high is the deciding factor for many firms and Carillion have shown that it can bring the correct results to any firm in these difficult times.

The firm has also benefited from outsourcing in another way, one which has helped drive business and income to the firm. It is apparent that outsourcing is important for many firms and companies, organizations or local government bodies can outsource their facilities management requirements. This frees the firm or organization up from the time and hassles of managing these requirements and will allow them to benefit from the experience and knowledge that companies like Carillion will have developed in these areas. This provides a win:win situation for both firms which is clearly of great benefit to all concerned.

As so many firms will now be examining their internal status and job books in order to find more efficient uses of their money, the market for this type of relationship may become squeezed, which will make it harder to find the correct deal. This will be tough on those firms who have not sorted their future out yet but for the early movers like Carillion who embraced outsourcing at an early stage, the likelihood of success is much higher than that experienced by their peers.

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.