With time, every business domain undergoes periodic churns, propelled mostly by changing market dynamics, competition, innovation and technological advancements. In this context, business process outsourcing is certainly not an exception, although as compared to other major business domains, it has a relatively shorter history. Even in it's short history, which can be traced back to somewhere around 20 to 25 years, the outsourcing domain has witnessed significant changes, both in terms of physical and characteristic changes. Since understanding these changes and their implications is necessary for both clients and providers in order to carry out the outsourcing function in the most appropriate manner, we have meticulously identified some of the most significant changes that have occurred in the outsourcing domain over the last two decades. Here are some clues as to what's IN and what's OUT in the outsourcing domain:
What's IN:
An increased focus on giving preference to long-term business objectives over short-term business gains. For example, cost reductions, which was the primary objective earlier, is presently given the same importance as improvements in process quality and customer satisfaction levels. An effort to forge and sustain long-lasting business relations with the service provider. Earlier, most outsourcing deals were based on limited period contracts, something that often fueled insecurity and suspicion amongst the involved parties.
An increase in the number of small & medium enterprises hiring outsourcing services. Earlier, outsourcing services were hired mostly by multinational companies, troubled with rising operational costs and growing inefficiency.
The use of automated customer service tools and systems, which aim to reduce the workload of customer service professionals and also to improve transactional security. For example, automated systems such as the IVR (Interactive Voice Response) have made it quite safe for customers to make online credit card transactions.
What's OUT:
The intensity of protests against outsourcing that were fueled by incremental job losses. Over time, most people have realized that something that is good for U.S. based businesses, can also prove good for the nation as a whole and possibly even help the global economy.
The end of an era when providers were referred to as "third-party" providers. The term may still be used, but more often it it is now being replaced by "strategic partner". This may appear cosmetic, but it actually signifies a drastic change in the general perception of outsourcing.
The monopoly of a few service providers, clustered in a specific, geographical location. With the advent of significant changes in IT and Telecommunications, a chance to undertake outsourcing projects is now available to any firm or country that has the skills and expertise for achieving the desired goals and objectives. The wishful thinking that outsourcing will eventually reach saturation and that it will be the end of it all. With emerging sub-domains such as KPO (Knowledge Process Outsourcing), the industry does not appear to be heading that way.
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What's IN:
An increased focus on giving preference to long-term business objectives over short-term business gains. For example, cost reductions, which was the primary objective earlier, is presently given the same importance as improvements in process quality and customer satisfaction levels. An effort to forge and sustain long-lasting business relations with the service provider. Earlier, most outsourcing deals were based on limited period contracts, something that often fueled insecurity and suspicion amongst the involved parties.
An increase in the number of small & medium enterprises hiring outsourcing services. Earlier, outsourcing services were hired mostly by multinational companies, troubled with rising operational costs and growing inefficiency.
The use of automated customer service tools and systems, which aim to reduce the workload of customer service professionals and also to improve transactional security. For example, automated systems such as the IVR (Interactive Voice Response) have made it quite safe for customers to make online credit card transactions.
What's OUT:
The intensity of protests against outsourcing that were fueled by incremental job losses. Over time, most people have realized that something that is good for U.S. based businesses, can also prove good for the nation as a whole and possibly even help the global economy.
The end of an era when providers were referred to as "third-party" providers. The term may still be used, but more often it it is now being replaced by "strategic partner". This may appear cosmetic, but it actually signifies a drastic change in the general perception of outsourcing.
The monopoly of a few service providers, clustered in a specific, geographical location. With the advent of significant changes in IT and Telecommunications, a chance to undertake outsourcing projects is now available to any firm or country that has the skills and expertise for achieving the desired goals and objectives. The wishful thinking that outsourcing will eventually reach saturation and that it will be the end of it all. With emerging sub-domains such as KPO (Knowledge Process Outsourcing), the industry does not appear to be heading that way.
Article source: Click Here
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