Mega deals taking a hit in the outsourcing arena

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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

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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

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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?

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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

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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

UK Companies losing out £55 million yearly in contact centre outsourcing

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It is being said that UK companies are losing out £55 million yearly during contact centre outsourcing. As per Exony, better management of outsourcing providers can help the companies to save this money and bring about overall improvement. Exony has highlighted ten areas where the companies could seek improvement and hence savings to the tune of 4.5% per annum. The areas highlighted are accurate forecasting and resource administration so that service level agreements are met and optimum billing methods. Here are some statistics which would make the picture more clear to you: Industry statistics show that 14 per cent of the UK’s 5,935 contact centres and 581,000 agent positions are outsourced[1]. Exony calculates that improving organisations’ ability to measure and manage their outsourcing providers would save £675 per annum for each of these 81,340 outsourced agents, making an annual total saving of £54.9 million in the UK alone. This would pay for an additional 3,660 customer service agents[2], dramatically improving efficiency and cutting call waiting times. Certainly if proper steps are taken then companies could save this big amount and result in further improvements for their company and the customers in the long run. Via crm2day

Accounting shortage leading to outsourcing

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shortage of skilled accounting staff is leading the companies towards outsourcing. Some state that bringing down costs is one of the reasons behind finance and accounting outsourcing followed by the shortage of accounting staff. A number of companies have started to move towards accounting outsourcing. Some of them even state that they are outsourcing for improving the quality of the financial and accounting services. Due to this a number of local CPA firms are launching their rent a CFO services. It does not mean that everybody is going for accounting outsourcing, there are still a number of middle market companies which are not sure about accounting outsourcing and some of them feel that they might lose control over the outsourced process and are not even sure about the security too. Though there is some skepticism but it is expected that in the coming years accounting outsourcing would blossom like anything. Via accountingweb

R&D outsourcing on the rise despite roadblocks

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The R&D arena has been hit by the cost and complexities involved in the innovation process and therefore companies are now looking up to outsourcing of R&D function. Both the offshoring and outsourcing concepts for R&D are being given importance and it is being regarded as a global innovation network model. Increasing number of companies are giving importance to R&D outsourcing now. Though it offers a number of advantages in the form of speed and greater efficiency it also brings along with it a number of challenges such as loss of control which is being regarded as the biggest disadvantage of R&D outsourcing. Rob Mitchell, editor stated: Increased competition, the cost and complexity of innovation and a surplus of ideas are encouraging many companies to restructure their approach to research and development. Our survey shows a considerable shift towards greater outsourcing and offshoring of R&D in what we term a global innovation network model, despite concerns about loss of control over a function that is often considered core to a company’s identity Via cellular-news

European outsourced logistics services to cross $2 billion by 2011

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As per a latest report it is expected that the European spending on outsourced logistics services in the pharma industry would exceed the mark of $2 billion by 2011 as it would result in growing opportunities for 3PL providers. The research conducted by Analytiqa states that logistics spending in Western European markets would grow by more than twenty percent and Spain is expected to emerge as a leader in this game. Though the European pharma chain is highly regulated and complex but logistic services outsourcing is still in its infancy in Europe and it is expected that it would offer expansion opportunities for service providers. Since European pharma supply chain outsourcing is underdeveloped as compared to that of U.S. , third party logistics provider have a great chance of staying ahead in the race if they are able to adapt their offering with the changing demand. Via outsourcing-pharma

Nigeria all set to enter global outsourcing domain

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Nigeria, an African country is looking forward to get hold of some share in the outsourcing arena and is working to create a platform for itself which would let then earn revenues worth $10 billion yearly from IT BPO sector. There is a very possibility that this sector would thrive in Nigeria and would help in the development of non oil sector of their economy. Since Paris had a lot of skilled human capital in IT and Internet Service knowledge it would surely be able to deliver quality service and the launch is happening at the right time since it could help in development of entrepreneurial talent in the country and even attract foreign investment. The country has a lot to offer in terms of English language knowledge, cultural fit and savings for the customers too. It seems Nigeria has a bright future ahead. Via vanguardngr