What In The World Is Your Companys Strategy For Reducing Costs And Enhancing Productivity?
In this world, companies who have yet to establish an offshore, global Business Process Outsourcing strategy to reduce the costs and enhance the productivity of their non-core competencies are failing to maximize their bottom line value by strikingly dramatic margins. To continue to do so may mean the difference between profitability as opposed to red ink or even the difference between success and survival and will almost certainly result in your lagging far behind your competition.
What IN THE WORLD is your companys offshore, global strategy?
According to McKinsey, the global "addressable" BPO market is worth $122 $154 billion, of which: 35-40 retail banking, 25-35 insurance, 10-12 travel/hospitality, 10-12 auto, 8-10 telecoms, 8 pharma, 10-15 others and 20-25 is finance, accounting and HR. Moreover, they estimate that 8% of that capacity was utilized as of 2006.
The findings of Duke University and CFO Magazine Global Business Outlook Survey reveal that, in this world of economic risks that pose scenarios of flat employment and tight credit, there will be a sharp increase in the spending and earning of U.S companies,. While 31% of companies surveyed, plan to acquire this year (as compared to only 19% last February), it is believed that outsourcing is also expected to grow by 4% in the next 12 months.
A survey by BDO (one of the America's leading accounting and consulting organizations) has indicated that outsourcing will be a key business strategy for companies in 2010. The CFOs surveyed in this compelling and credible survey opined that their companies are currently outsourcing to more locations. Below is a comparative chart of outsourcing hotspots:
Therefore, it is a statistical certainty and a settled proposition that more and more companies are utilizing outsourcing to reduce their costs and increase their productivity so that they can focus on their core competencies thereby becoming more efficient and responsive to their customers in the delivery of those core processes. There is a reason for this: as companies are feeling the tightening grip of increasing costs of providing non-core competencies in house, they are coming to see that it is much more cost efficient (usually by 50% or more) to outsource those services to competent BPO providers.
The seemingly inescapable costs of the brick and mortar housing of these services such as rising salaries, unemployment taxes, workers compensation insurance, health care insurance, payroll, other benefits and a seemingly unending list of expenses associated with the care and feeding of employees who perform duties that have little to do with the companys core competencies is a stranglehold from which struggling companies cannot wait to free themselves. And BPO Outsourcing is the quintessential answer to this predicament. Why pay all of the costs required to retain business functions in house that do not even constitute your core competencies when you can outsource these functions and focus on your true core business functions?
Companies like yours are making the wise move (literally) to outsourcing.
The value proposition is simply too huge and represents such phenomenal savings that companies can no longer rest on their laurels while their competition cut their expenses and thereby provide greater value to their customers. To do so may constitute a grave strategical mistake in your business model and may very well lead to disaster for companies not willing to make this move. What is your companys outsourcing strategy?
What in the world is being outsourced?
With this unprecedented growth in offshore outsourced services, companies are hiring BPO providers to handle a wide variety of services that do not constitute core business functions for those companies. While this list is but a few of the functions being outsourced and most any business function that is performed on a repetitive basis may be outsourced offshore, the following is an exemplary list of such services:
1.Partnering: Relationships that are established between BPO providers and their clients constitute genuine and valuable working partnerships which result in certain key benefits which can be realized, including, but certainly not limited to collaborative efforts such as identifying methods of assessing successes and improvements, joint identification of responsibilities, perpetual action planning to meet emerging and changing needs and relationship building based on trust and reliance as opposed to mere contract fulfillment.
2.Creation of Business Value: Companies taking advantage of the many benefits of outsourcing their non-core competencies leverage BPO services in order to gain clear and compelling net new business value, which include regulation compliance realization, new business and subsidiary launches and development of new revenue channels just to name a few such benefits.
3.Enabled Globalization: Globalization as a business strategy takes on a whole new meaning and relevance benefiting clients who utilize BPO services and those clients are finding that BPO providers are directly and indirectly assisting those clients to fit right into the globalization equation in many ways.
4. Creative Improvements You May Have Never Thought of Otherwise Such As Streamlining, Improving and Documenting, Your Existing Processes: All companies can use the infusion of new ideas that a proficient Outsourcing Provider can offer for your company to consider as alternatives to improve your processes in lieu of the more manual and undocumented business processes you are currently utilizing.
5. Utilization of a proficient outsourcing provider will provide you with what amounts to complimentary consulting services. The means by which you have been providing services in a particular process will now be subject to a second set of eyes from the outsourcing provider who performs that function on a regular basis.
6.Creative Strategic Opportunities to Solve Such Problematic Bureaucratic Issues as Compliance Requirements: Partnering with a reputable provider to outsource the maintenance of existing applications liberates your IT and other resources you are currently utilizing to satisfy the governments compliance requirements so that you can dedicate the entirety of your in house IT resources to your business and not that of the governmentas it should be.
7. Enhancing Your Metrics and Measurement Program: Outsourcing your repetitive processes to an efficient provider will greatly enhance the institution of your metrics and measurement programs which otherwise be weak, unattended to or simply not implemented at all.
8. Discovering New, Fresh and Creative Perspectives In Your Approaches and Technology Applications: An outsourcing service provider that has done work that is similar to that of your company for other customers will almost invariably provide you with fresh new perspectives on your companys approach and technological applications.
9. Most importantly- Double Enhanced Productivity: Best in Class Companies have learned that there is an increase in their productivity that is, in effect, enhanced in two very important ways.
The utilization of offshore BPO services invariably increase the BPO clients own business productivity in providing their core competencies. Moreover, those companies who are wise enough to utilize BPO providers to perform there back office functions are experiencing much greater quality of service within those functions that they are outsourcing because the BPO provider is much more proficient in those functions inasmuch as those functions are the core competency of the BPO provider.
(NOTE: See Premier BPO, Inc.s Website for more details regarding these benefits to establishing an Offshore Outsourced Services Strategy over and above cost-savings)
WHEN IN THE WORLD Should Companies Make the Offshore Outsourcing Move?
The well respected and often sited, Gartner research company recently recommended that, in response to the economic downturn and the slow growth we are experiencing, companies should press forward and, as with respect to new projects and campaigns, business organizations should (f)inalize and disseminate the methodology by which: (1) existing projects; (2) approved projects that havent yet begun; (3) projects put on hold; and (4) any new projects will be prioritized, sequenced, funded and staffed and that this action should be taken as soon as possible (Gartner recommends that you complete your Prepare for a Return to Business Growth strategy no later than July 1 for strategic reasons set out in the article which we commend to you for your reading). (Gartner, Research, Its Time to Prepare for a Return to Business Growth, Ken McGee and Mark Raskino, 05/04/2010).
WHO IN THE WORLD Should Companies Make the Offshore Outsourcing Move With?
A strategic outsourcing partnership is created when your outsourcing Provider consistently exceeds expectations to become a valuable partner in your business strategy. These successful relationships are built by a constantly evolving and mutually complementary vendor/client outsourcing relationship which translates into the addition of bottom line value through cost-savings and a proven suite of proven processes, collective commitment and excellence in effort. So, now that you realize that BPO outsourcing is an imperative component of your business strategy that is missing, what in the world are you going to do? Premier BPO, Inc. (http://www.premierbpo.com/) is a Business Process Outsourcing company managed by professionals who are eminently respected and very well known within the Business Process Outsourcing community as competent, trusted, experienced and reliable leaders in the BPO industry.
N. Reese Bagwell
Executive Vice President,
Administration
[email protected]
931-551-8888
http://www.PremierBPO.com
What IN THE WORLD is your companys offshore, global strategy?
According to McKinsey, the global "addressable" BPO market is worth $122 $154 billion, of which: 35-40 retail banking, 25-35 insurance, 10-12 travel/hospitality, 10-12 auto, 8-10 telecoms, 8 pharma, 10-15 others and 20-25 is finance, accounting and HR. Moreover, they estimate that 8% of that capacity was utilized as of 2006.
The findings of Duke University and CFO Magazine Global Business Outlook Survey reveal that, in this world of economic risks that pose scenarios of flat employment and tight credit, there will be a sharp increase in the spending and earning of U.S companies,. While 31% of companies surveyed, plan to acquire this year (as compared to only 19% last February), it is believed that outsourcing is also expected to grow by 4% in the next 12 months.
A survey by BDO (one of the America's leading accounting and consulting organizations) has indicated that outsourcing will be a key business strategy for companies in 2010. The CFOs surveyed in this compelling and credible survey opined that their companies are currently outsourcing to more locations. Below is a comparative chart of outsourcing hotspots:
Therefore, it is a statistical certainty and a settled proposition that more and more companies are utilizing outsourcing to reduce their costs and increase their productivity so that they can focus on their core competencies thereby becoming more efficient and responsive to their customers in the delivery of those core processes. There is a reason for this: as companies are feeling the tightening grip of increasing costs of providing non-core competencies in house, they are coming to see that it is much more cost efficient (usually by 50% or more) to outsource those services to competent BPO providers.
The seemingly inescapable costs of the brick and mortar housing of these services such as rising salaries, unemployment taxes, workers compensation insurance, health care insurance, payroll, other benefits and a seemingly unending list of expenses associated with the care and feeding of employees who perform duties that have little to do with the companys core competencies is a stranglehold from which struggling companies cannot wait to free themselves. And BPO Outsourcing is the quintessential answer to this predicament. Why pay all of the costs required to retain business functions in house that do not even constitute your core competencies when you can outsource these functions and focus on your true core business functions?
Companies like yours are making the wise move (literally) to outsourcing.
The value proposition is simply too huge and represents such phenomenal savings that companies can no longer rest on their laurels while their competition cut their expenses and thereby provide greater value to their customers. To do so may constitute a grave strategical mistake in your business model and may very well lead to disaster for companies not willing to make this move. What is your companys outsourcing strategy?
What in the world is being outsourced?
With this unprecedented growth in offshore outsourced services, companies are hiring BPO providers to handle a wide variety of services that do not constitute core business functions for those companies. While this list is but a few of the functions being outsourced and most any business function that is performed on a repetitive basis may be outsourced offshore, the following is an exemplary list of such services:
1.Partnering: Relationships that are established between BPO providers and their clients constitute genuine and valuable working partnerships which result in certain key benefits which can be realized, including, but certainly not limited to collaborative efforts such as identifying methods of assessing successes and improvements, joint identification of responsibilities, perpetual action planning to meet emerging and changing needs and relationship building based on trust and reliance as opposed to mere contract fulfillment.
2.Creation of Business Value: Companies taking advantage of the many benefits of outsourcing their non-core competencies leverage BPO services in order to gain clear and compelling net new business value, which include regulation compliance realization, new business and subsidiary launches and development of new revenue channels just to name a few such benefits.
3.Enabled Globalization: Globalization as a business strategy takes on a whole new meaning and relevance benefiting clients who utilize BPO services and those clients are finding that BPO providers are directly and indirectly assisting those clients to fit right into the globalization equation in many ways.
4. Creative Improvements You May Have Never Thought of Otherwise Such As Streamlining, Improving and Documenting, Your Existing Processes: All companies can use the infusion of new ideas that a proficient Outsourcing Provider can offer for your company to consider as alternatives to improve your processes in lieu of the more manual and undocumented business processes you are currently utilizing.
5. Utilization of a proficient outsourcing provider will provide you with what amounts to complimentary consulting services. The means by which you have been providing services in a particular process will now be subject to a second set of eyes from the outsourcing provider who performs that function on a regular basis.
6.Creative Strategic Opportunities to Solve Such Problematic Bureaucratic Issues as Compliance Requirements: Partnering with a reputable provider to outsource the maintenance of existing applications liberates your IT and other resources you are currently utilizing to satisfy the governments compliance requirements so that you can dedicate the entirety of your in house IT resources to your business and not that of the governmentas it should be.
7. Enhancing Your Metrics and Measurement Program: Outsourcing your repetitive processes to an efficient provider will greatly enhance the institution of your metrics and measurement programs which otherwise be weak, unattended to or simply not implemented at all.
8. Discovering New, Fresh and Creative Perspectives In Your Approaches and Technology Applications: An outsourcing service provider that has done work that is similar to that of your company for other customers will almost invariably provide you with fresh new perspectives on your companys approach and technological applications.
9. Most importantly- Double Enhanced Productivity: Best in Class Companies have learned that there is an increase in their productivity that is, in effect, enhanced in two very important ways.
The utilization of offshore BPO services invariably increase the BPO clients own business productivity in providing their core competencies. Moreover, those companies who are wise enough to utilize BPO providers to perform there back office functions are experiencing much greater quality of service within those functions that they are outsourcing because the BPO provider is much more proficient in those functions inasmuch as those functions are the core competency of the BPO provider.
(NOTE: See Premier BPO, Inc.s Website for more details regarding these benefits to establishing an Offshore Outsourced Services Strategy over and above cost-savings)
WHEN IN THE WORLD Should Companies Make the Offshore Outsourcing Move?
The well respected and often sited, Gartner research company recently recommended that, in response to the economic downturn and the slow growth we are experiencing, companies should press forward and, as with respect to new projects and campaigns, business organizations should (f)inalize and disseminate the methodology by which: (1) existing projects; (2) approved projects that havent yet begun; (3) projects put on hold; and (4) any new projects will be prioritized, sequenced, funded and staffed and that this action should be taken as soon as possible (Gartner recommends that you complete your Prepare for a Return to Business Growth strategy no later than July 1 for strategic reasons set out in the article which we commend to you for your reading). (Gartner, Research, Its Time to Prepare for a Return to Business Growth, Ken McGee and Mark Raskino, 05/04/2010).
WHO IN THE WORLD Should Companies Make the Offshore Outsourcing Move With?
A strategic outsourcing partnership is created when your outsourcing Provider consistently exceeds expectations to become a valuable partner in your business strategy. These successful relationships are built by a constantly evolving and mutually complementary vendor/client outsourcing relationship which translates into the addition of bottom line value through cost-savings and a proven suite of proven processes, collective commitment and excellence in effort. So, now that you realize that BPO outsourcing is an imperative component of your business strategy that is missing, what in the world are you going to do? Premier BPO, Inc. (http://www.premierbpo.com/) is a Business Process Outsourcing company managed by professionals who are eminently respected and very well known within the Business Process Outsourcing community as competent, trusted, experienced and reliable leaders in the BPO industry.
N. Reese Bagwell
Executive Vice President,
Administration
[email protected]
931-551-8888
http://www.PremierBPO.com
