UK has seen a significant jump in the number of product recalls and this is being linked to outsourcing to developing countries. Experts say that since most of the manufacturing is being outsourced to China and other nations it is becoming quite difficult to maintain control over quality. The trade associations of US and Europe have taken a serious note of this issue and they are condemning the regulatory authorities for poorly regulating the foreign active pharmaceutical ingredient manufacturers. The pharma industry has taken the biggest hit in this regard. As a result the credibility of the companies are taking the toll and with the market being highly completive they risk losing their customers and even their brand image could be hit badly. I believe the outsourcing companies should pull up their socks or risk losing their business as no company would like to sell products which start affecting their markets. Via drugresearcher
Convergys finds a place in global outsourcing top hundred list
Convergys is regarded as one of the world’s best outsourcing service providers and in order to honor its commitment to the outsourcing industry International Association of Outsourcing Professionals’ has selected the company as one of the world’s best outsourcing service providers. The list has some of the biggest names serving the outsourcing industry. Dave Dougherty, President and Chief Operating Officer, Convergys stated: We are honored to be named to this select list of global outsourcing companies. This distinction is a true reflection of the emphasis we place on providing exceptional solutions for our clients, helping them keep their customer relationships positive and profitable. Convergys was judged on the basis of the following criteria: The depth and breadth of the company’s competencies demonstrated through industrial recognition and investment in development of people. The value it brings to its clients’ customer experience. The accomplishments and experience of the executive team of Convergys and investment in management system which ensures outsourcing success. Congratulations to you Convergys!! Via crm2day
Walter Reed Center’s substandard care blamed on outsourcing
Outsourcing is being labeled as a culprit at the Walter Reed Army Medical Center. Local veterans are putting the blame on outsourcing for neglect of veterans’ contribution to the substandard care for wounded soldiers at the Walter Reed Army Medical Center. Competitive outsourcing is being blamed by the lawmakers. For bringing down the costs private companies are being allowed to compete for jobs which were earlier held by federal employees at Walter Reed. It is being said that the staff reductions were so high that they came down from the figures of three hundred to sixty. One of the veterans stated that if care facilities were to be outsourced they should go to the best providers and not one which is cheap. They say the situation would worsen since American forces are engaged in varied conflicts worldwide. Whatever be the case it has certainly left the veterans high and dry. Via postbulletin
What do you think about elderly outsourcing?
Deborah Moggach who is a known screenwriter and novelist has made a very exciting proposition that the U.K elderly should be outsourced to India since the weather is not that pleasant out there, pensions are reducing and it is easier to go on a holiday to Goa rather than catch a train from London to Edinburgh. The elderly would surely enjoy basking in India, the respect for elders prevalent in the Indian culture and low costs out there. The idea seems pretty good since India is the land of outsourcing but I am not pretty sure whether the elderly would like to leave their motherland permanently and shift to India since emotional attachment to their soil might stop them from leaving their native land but the idea seems to be really good and it might make some entrepreneurs think about starting an old age home for outsourced elderly. Via thehindubusinessline
Costs acting as a dampening factor for BPO sector in Dubai
Now Dubai is also looking to emulate the success of India in the field of BPO but high costs in bringing up the BPO centres is acting as a roadblock for the city. Amazingly the economy of UAE has been adjudged as the most competitive Arab economy by the World Economic Forum. It has received strong praises for its entrepreneurial skills but has lost out due to heavy dependence on migrant workers and lack of educational reforms. Lately UAE has been witnessing rising costs due to increasing rents and inflationary pressure which has been affecting business in Dubai. India is a leader in outsourcing and will continue for a long time since it has the basic communication skills coupled with low costs and with its expertise in IT and BPO makes it a natural choice for companies outsourcing. Now Dubai is targeting high end outsourcing operations and with its close proximity to Africa, East and South Europe, Central and South Asia will surely offer it a geographical advantage but only if it can control its costs since this is a vital factor in the outsourcing game. Via hindu
Mega deals taking a hit in the outsourcing arena
The trend is changing in the field of outsourcing. The time of mega deals seems to have ended and they are being replaced by smaller deals. The reason being attributed is that the outsourcing market has matured. The verdict is that mega deals seem to have taken a hit and now smaller deals are in vogue having duration of around two years now. This does not mean that outsourcing is losing its charm but now companies are less committed to enter into long term deals. The new mantra in the outsourcing industry is flexibility. Probably outsourcing has taken a blow on the issues of security and data privacy and this could be one of the reasons that companies are now less committed for mega deals. Let’s hope that the outsourcing industry strengthens itself in the areas mentioned above and reverses this trend. Via playfuls
Logistics outsourcing all set to witness a sharp growth
it is expected that logistics services spending would increase across the pharma, automotive, consumer and technology industries over a period of five years as the outsourced logistics market is expected to grow by nearly thirty three percent. Experts are warning that third party logistics providers must themselves make a greater effort for benefiting from this opportunity since it would now not be possible to rely on greater outsourcing penetration and sustaining margins for recognizing growth. If outsourcing companies would like to benefit from this industry then they must be associated with their customer in a close manner and develop a better understanding of the variations in the national cultures and regional market characteristics. Growth will be witnessed in retail markets due to consumer demand and supply chain trends. The major growth is expected in online shopping and recycling of electrical products. Via prweb
India set to gain from recruitment process outsourcing
RPO or recruitment process outsourcing has started to gain steam in India. RPO is generating revenues worth $92 billion in India and this figure is only expected to go north. The people involved in this work look for clients worldwide and handle the task of finding talent for various jobs. Overseas companies find it quite suitable since the cost of recruiting a candidate works out to $100,000 per year in U.S. By 2008 RPO is expected to generate revenues worth $ 30 billion. The companies are able to bring down their recruitment costs by more than one third with RPO. RPO involves work ranging from candidate searching, corporate intelligence research to market trend analyses and market recruiting. The RPO model is proving out to be a big hit therefore it is being regarded as the next big thing in the world of outsourcing. Via hindustantimes
Can outsourcing customer services boomerang?
A number of companies have outsourced their customer services to India which is being regarded as a favored destination for availing cost effective services. Companies opting for outsourcing are fully aware of the hard costs on paper but probably they might not be aware of the soft costs. You must be wondering what are soft costs – let me give you an example to make it easy for you to understand. Soft costs are measurable and this can include the English language nuances and American slangs to name a few. Companies not aware of these may cause severe frustration for their customers and may even lose out on business. Here are some of the problems which are encountered by the customers: Can’t understand the problem Can’t effectively communicate in a way I can understand Has no empathy for my problem linger on and on Though one cannot say that customers are unhappy but there are certain people who are not happy with all this and companies need to make sure that the problems need to be solved at hand before they take a shape which cannot be controlled and cause long term problems for the companies. Via bloggingstocks
Philippine culture gets a setback as a result of outsourcing
Around 105,000 people in Philippines are working in the arena of outsourcing and another million is expected to join this booming industry by 2010. Though economically it is proving to be beneficial but its culture has started to suffer. These people barely get to see the light of the day since they are working in nocturnal shifts, adjusting their sleeping hours has become really difficult and with the new American accent they feel out of place. Still a number of youngsters are flocking to call centers for work since the average salary in this industry is much higher as compared to the national average. Coupled with abuse by the American customers this has led to frustration among the young working population. Abnormal working hours has started to have effect their health and has made them a caffeine addict in order to stay awake coupled with ENT problems. Lack of a proper family and social life has also left them frustrated but since there is a lot of poverty in this country therefore they seem to be continuing with the suffering. How far is this justified? It’s rightly said money can’t buy you all the happiness in the world. Via nysun