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Outsourcing Is
Picking Pace |
by:
Mansi
gupta |
BPO or Business
Process Outsourcing is a very common and mushrooming phenomenon
these days. BPO can be defined as the accomplishment of a business
task from some outside agency. For instance a company can ask
or hire an external agency to maintain its old records and accounts.
The phenomenon of outsourcing was not so well established before
a decade. Initially some of the relatively small and low grade
jobs like old storage record of the company were outsourced in
United States. Gradually with the budding success and confidence,
valuable and crucial jobs like payroll accounting, human resource
tasks – recruitment, training and development of employees joined
the fray.
Outsourced jobs most often involve the ones, which need to be
performed on a regular or daily basis. The companies now no more
perform such tasks which they used to perform themselves. Like
hiring of a consultant company for training of new employees,
getting advertisements made from an advertising firm across the
seas.
Outsourcing has many benefits. It allows a company to identify
and focus on its core competencies. The company can outsource
every other task that can be taken up by outside agencies and
that requires significant time and energy (like training of new
employees, making recruitments, marketing and manufacturing of
products etc.). This lends the opportunity to the company to fully
concentrate on its core competency.
Along with this the low cost factor is equally important. The
companies in US and Europe by outsourcing their jobs in countries
like India, Japan and China accrue huge profits in terms of cost
saving. Such savings in cost are in the form of cheap and skilled
labor, manufacturing or production of the goods etc. This in turn
is a result of variation in salary structure across the globe.
Outsourcing proves quite worthwhile and beneficial during the
period of slump in a country’s economy. When profits are under
threat and it becomes imperative to reduce the costs, outsourcing
is perhaps the best way to mutilate the costs without compromising
on the good quality of work. Besides this BPO also liberates big
companies of labor oriented problems or issues, thereby enabling
them to be more focused and streamlined to enhance their work.
There are various sectors in which outsourcing is holding grips.
These are Financial sector, IT, Telecommunications, Advertising,
Courier Services and Customer Support Services. A case in point
can be Spectra mind that undertakes many of the crucial tasks
(insurance, telecom etc.) for clients in US and Europe.
But the outsourcing process is not acceptable to everyone due
to its complementary disadvantages. People often believe that
outsourcing leads to drainage of jobs. It is believed to create
an acute unemployment for the qualified professionals of that
very nation. Moreover there the threat of delayed work failing
to meet the deadlines and targets and most importantly that of
leakage of confidential information is always lurking in overseas
outsourcing. The companies also do not get to confront or communicate
directly with their key clients which makes them all the more
dependent on their offshore agencies.
Like every other phenomenon, outsourcing in business too has tail
of ethics attached to it. However, the truth is that it is one
of the best ways for a company to expand, enhance its growth and
minimize the costs. But a company should not be just enchanted
by the merits of outsourcing but should also be considerate of
its pitfalls.
About the author:
Mansi gupta writes about Outsourcing topics. Learn more at http://www.outsourcingconcerns.com.
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