Outsourcing: A recession proof business
Outsourcing as a business has gained a lot of fame around the world. It has helped many people get jobs and many companies increase their profits. In the present era of a big economic slump, the outsourcing industry remains one of the recession proof businesses present in the world.
Companies today need their work done at cheaper rates because of the current economic conditions. The companies in the West and elsewhere are looking to cut down costs in order to save money in the current economy and put it to better use. So they are now outsourcing their work to countries where it can be done at cheaper rates as compared to their own countries.
Companies today are looking to maximize outsourcing. That is why after the boom of the BPO industry, sectors like KPO, LPO, HRPO came into existence. Most of the work is being outsourced today to the Asian countries and although the economic meltdown has hit all the sectors badly, outsourcing has managed to grow irrespective of the economies of countries.
The future of this industry remains bright as well. With small businesses coming into existence, the BPO industry stares into no threats as of now. Small businesses perhaps do not have that amount of money to give away to the local employees as their larger counterparts hence they look to hire professionals in the Asian countries to get their work done.
If there is a talk about carriers that are not affected by the recession, outsourcing is definitely one of them.
Outsourcing with Expertsfromindia: An advantage for small businesses
Having your work outsourced has many advantages. Many small firms are reluctant to outsource their work because they think that the charges will be exorbitant and that they will not be able to afford them. However, with Expertsfromindia, you have certain advantages.
We help you
Direct your focus on your core business. Outsourcing gives you the freedom to focus on your core business. The managing team can work more efficiently if they are not overloaded with a lot of work. We help your business direct its focus from peripheral activities toward core business and serving the customer.
Groom the playing field. Small firms generally are not willing to have their work outsourced because they perhaps can not pay the amount for the concerned services that the bigger companies pay. We help small firms act “big” by providing them quality services at affordable rates.
Work at reduced risk. It is a known fact that any business investment will carry a risk factor with it. Dynamic changes affect factors like markets, competition, financial conditions, and technologies. We at Expertsfromindia manage this risk for you. We know how to work at a low risk hence rid you of most of your worries.
Improve your efficiency. If you subscribe for a service from another firm then it helps giving your company a fine competitive edge. This way you can cut out on your expenses like research and development, marketing and distribution expenses. Our cost structure gives you the license to use the above expenses for bettering your rapport with the customers.
Take more projects in hand. If you do not have to manage a lot of things then you can consider taking up new projects and working on them. Outsourcing has helped companies take up many projects at a time and complete them successfully at low costs and in a short span of time. We have the required resources to meet deadlines successfully and handle our clients’ projects with ease. This way you also chop off the money that you would have spent on the training and grooming of your staff for the required work.
Control capital costs. One of the major reasons why company have their work out sourced is ‘cutting capital costs.’ Fixed costs are converted into variable costs, and you have the freedom to releases capital for investment at other places in your business. We help you lessen the exorbitant expenses at the start your business.
What’s ‘Outsourcing’ huh??
In the recent times, outsourcing has become one of the major ways of getting works done at cheap rates. The difference between the currencies of the west to that of the east is one major reason for the flourish of this type of business in the Asian countries.
Outsourcing gained fame when unemployed youngsters in the Asian countries started getting into the call centers to earn their living. Mainly the job profile in a BPO consists of taking calls from customers and solving their queries.
Companies in the fortune 500 are the main clients of the call centers in India and other Asian countries. Companies like Walmart have a huge market worldwide and a big customer base. With the arrival of internet in effectively every second home things started to change. Shopping online became an easy and a time saving way to buy things of need. Orders were placed on the internet and delivered to the concerned person.
However there were people who did not have easy access to the internet and preferred shopping on the phone. To cater to their needs companies like Walmart started taking orders on the phone. This same thing is now done by the Indian call centers. Executives at call centers are supposed to take orders on the phone and solve queries on the phone. This way companies get their work done at cheap rates and in an effective way.
Similarly many companies need man power to solve their customer’s problems and take orders on the phone. It is this work that they assign to call centers in India. It has helped solve the unemployment problem in Asian countries to some extent and has helped improving the profits of the Western companies. A win-win situation eh!
Types Of Outsourcing
Outsourcing has gradually become one of the biggest industries in many Asian countries. The outsourcing business has flourished like multiplying bacteria in some Asian countries. There are various types of outsourcing
1. B.P.O: This is an abbreviation for business process outsourcing. This is also a very common term and most of the people know about it by now. Back office operations are performed by Countries like India, China, and Philippines for the major corporations based in Europe and America. This involves data entry, employee payroll and voice calling, thus termed B.P.O.
2. H.R.O: This term stands for Human Resource Outsourcing. It is being estimated that H.R.O may be the next big industry in the Asian market. H.R.O involves many activities like training employees and freshers, administrating benefits, travel and expenses management, payroll and risk management, compensation consulting, etc. Companies are having HR outsourced so that they can focus on their core competency. H.R.O is expected to touch $ 67 billion globally. Although this is just 29% of the total B.P.O revenues, experts say that it will soon be a great force in the outsourcing business.
3. R.P.O: the term is an abbreviation for Research process outsourcing. The biotechnology industries have been outsourcing their R&D work. India is one of the major countries where the research work is outsourced. This is again because of the dollar rupee ratio. India may have an edge over others because of the professionals it has who work at lesser salaries than their western counterparts.
R.P.O also stands for recruitment process outsourcing. This involves outsourcing all or some of the recruitment activities to a third party. The entire recruiting and hiring procedure is taken care of by the R.P.O providers. This is a twin outsourcing process of H.R.O.
4. MBPO: Medical Business Process Outsourcing. Herein all the medical related business activities like medical and health call center services, medical billing and medical transcription outsourcing, data conversion, medical forms processing etc are taken care of.
5. L.P.O: The term is a short form of Legal Process Outsourcing. This involves receiving legal support services from an outside firm. Initially L.P.O involved working for lawyers and transcription work but today the industry is growing at a steady pace and has reached a point where firms provide services like pre litigation documentation, legal research, client advocacy, etc to their clients.
6. K.P.O: An abbreviation for Knowledge Process Outsourcing, K.P.O involves providing services related to analysis on a given field and research oriented work. In fact R.P.O (Research Process Outsourcing) is a component of K.P.O. Another subcategory of K.P.O is A.P.O i.e. Analysis Proves Outsourcing. This type of outsourcing involves educated professionals who have in depth knowledge about a particular field or subject.