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In today’s tough business environment, a contact center or business process outsourcing company COULD be relied upon as potential partner/contingent workforce –one that could be relied upon to provide extra manpower for sudden surges in business activities.
The availability of contingent workforce providers like outsourcing companies enables companies to hold off on increasing headcount while maintaining a back up plan for hopefully, higher business acitivities. Lower fixed overheads allow companies to be nimble and respond quicker to changes in business environment.
We want our clients to save on capex (Capital Expenditures) by using our contact center facilities (computers, internet infrastructure). This also saves on space and on rent. Our clients are attracted to our low rates, innovative solutions and flexible resources. This flexibility to activate contact center services on demand is a key strategy in these times of recession. You reduce your overhead.
Here is an excerpt from a somewhat similar train of thought from BT as published in Telecoms Asia, December 2008 Edition:
Outsourcing versus in-house ownership has clearly become more topical given the current developments in the global economy.
Businesses are actively looking at ways to reduce costs for longer term sustainability. The recent actions of some banks to sell non-strategic business units provide a clear example of how businesses recognize the need to delineate between what are core and what are non-core competencies when delivering to their business objectives.
Outsourcing should be about realizing assets that do not add value to core competencies but in fact detract or dilute focus from business differentiation. Outsourcing needs to be focused on enabling businesses to leverage the benefits of freeing up these non-core assets to invest back into their core competencies or leverage additional business cost reductions.
The outsourcing of IT support and communications services will be increasingly common next year in the context of freeing up non-core assets, however, not in the sense of full end-to-end ownership of a business unit, rather the shift to a managed service type outsourcing. The managed service we traditionally know of meant that for a fixed term and a fixed service, there was a fixed price hence a business knew what to expect.
However, in the current economic climate we are seeing that businesses require greater flexibility or a degree of compromise to grow as and when the business requires it, but also to be able to trim down when business¬es no longer flourish as in the current market context.
The concept of outsourcing has matured over the years, and its latest evolution will be a non-capex, flexible, scalable solution that is customer specific while leveraging common platforms.
This allows businesses to increasingly focus on growth or cost reduction requirements relating to business processes rather than what will increasingly be regarded as overhead, such as IT and communications.
This approach is best defined as a partnership, with shared risk and shared rewards, recognizing the need to balance long-term sustainable growth with short-term profitability.
Source: Telecom Asia -Nathan Bell, BT’s general manager for portfolio and.partnerships, Asia Pacific
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