Business process outsourcing involves contracting of the responsibilities and operations of particular business processes (or functions) to a third party service provider. BPO – Business Process Outsourcing is a subset of outsourcing. It is a valuable technique for organizations and companies searching for better ways to accomplish high performance by minimizing risk, controlling costs, increasing transparency, and fostering collaboration. BPO can be contracted outside the country of the company involved; this is known as offshore outsourcing. On the other hand, if BPO is contracted to an organization’s nearby country, it is known as near-shore outsourcing.

One of the outstanding  benefits of BPO is its manner of assisting an organization to increase its flexibility. Company’s flexibility enhancement through business process outsourcing is achieved in different ways.

Two Distinct Categories of Business Process Outsourcing

Basically, two categories of BPO are identifiable;

Back Office Outsourcing: the functions included in back office outsourcing are internal business functions such as finance and accounting or human resources.

Front Office Outsourcing: customer-related services are included in front office outsourcing. Example of front office outsourcing is contact center services.

Benefits of Business Process Outsourcing

Large part of business process outsourcing services is offered on the basis of fee-for-service. This enhances the company’s flexibility greatly by transforming fixed costs into variable costs. What is the import? A variable cost structure is very helpful to an organization responding to changes in particular capacity, and a company would not need to invest in assets thus enhancing the company’s flexibility.

Outsourcing has the capacity to provide a company with increased flexibility in the aspect of resource management. It may also lower the time required to respond to major environmental changes.

Also, when BPO is involved, a firm is able to concentrate on its core competencies with much ease, and is not affected by the demands of bureaucratic restraints. Consequently, key employees are thereby relieved from carrying out non-core processes which tend to take their attention off the major issues of the organization. The secret lies in determining the areas that require more attention – product leadership, customer intimacy or operational excellence.

Thus, when a company’s key employees focus on one of these major areas (since the non-core aspects have been outsourced), the company is more likely to enhance its competitive edge. Also, business process outsourcing enhances organizational flexibility by speeding up business processes.

The importance of organizational flexibility cannot be overemphasized, and one of the best ways to enhance organizational flexibility is to embark on business process outsourcing. When flexibility is highly in place in an organization, a company would maintain its growth goals, while keeping away from standard business bottlenecks. Also, Business Process Outsourcing is a great strategy for a company to retain its entrepreneurial agility and speed.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com

In the world of internet marketing, online marketing outsourcing has become the trending topic.  Apart from developing niche websites and other common tools for internet marketing, outsourcing is not entirely a new concept and in the past few years, online entrepreneurs have been taking advantage third party service providers to complete work on their behalf. Today, marketing outsourcing is mainly used to help boost the company’s marketing, particularly for those who cannot afford to setup their own marketing department. With the advent of new technologies and the development of various internet services, outsourcing has become widely popular among internet marketers especially in the aspect of web development, content writing, search engine optimization, link building, traffic generation, and list building among others.

With the popularity of online marketing outsourcing, a lot of companies are offering the same services to interested parties who have lots of marketing tasks to outsource. Because of this, there are certain factors to consider before a company should decide whether to outsource part of their marketing or not. Online marketing is a practical option, especially for those who are just beginning to set up their online businesses. The reason for this is that advertising on the internet is relatively cheap compared to other advertising options. If you know how to start your internet marketing, chances are you will be able to gain an edge in the online marketing world. However, you need to have a good marketing arm in order for you to be able to realize your business goals.

And since most beginning internet marketers do not have the full resources needed for implementing their internet marketing strategies, they need to employ the services of professional marketing companies that specialize in online marketing and promotion using a myriad of internet marketing tools. For any business to grow, having a well planned marketing strategy is highly important. Internet marketing can help you grow your business and reach your target market without having to spend too much on advertising costs and you can make this possible by outsourcing most of your non-core marketing requirements that can help improve your online presence.

One of the common mistakes of internet marketers when they are outsourcing their online marketing needs is the price. Sometimes, instead of being able to find a cost effective marketing solution, internet marketers end up spending more than they should due to poor quality results or improper implementation of a particular online marketing strategy. Although not all third party service providers that offer the cheapest price are inefficient, there are companies that offer their services at the cheapest price simply because they do not have the right level of expertise to compete fairly in the market. Their only option to attract customers is to offer outsourcing services at the cheapest rate possible in order to gain clients.

In order to avoid this common blunder when it comes to outsourcing your online marketing requirements, you need to make sure you have more than one outsourcing company to choose from. Do not limit yourself in selecting candidates based on the cheapest price they can offer. Always consider the quality of the service they can provide and their level of expertise on various internet marketing tools and services. It will not be cost efficient on your part when you have to outsource your article marketing to one company and search engine optimization to another. Apart from complicating your management system since you have more than one outsourcing company to oversee, it can also double your overall marketing cost.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com

Are you a small business owner or a freelancer? Do you presently find yourself overloaded with so many projects that leave you feeling a little bit overwhelmed? Keep reading and you will get a couple of tips on how to outsource all those extra projects in order to assist you in successfully meeting deadlines and at the same time, also help you keep the quality of work you desire.

You will need to check out a couple of outsourcing sites. There are a lot of websites that will assist you in lightening your burden; a lot of these outsourcing firms will of course charge you a small fee after completing the task.

Simply go online and you will find loads of websites that are more than ready and willing to provide you with top quality service without charging you an arm or leg in the process. You also need to remember that when you are posting your projects on any outsourcing website, you will need to include all the necessary details. If there is anything that you need specifically done, you need to make sure that mention it. If the project demands certain skills, then you will also need to mention it–this way, you can easily avoid dealing with inexperienced freelancers who want to do the job, but are doing it wrong.

Outsourcing No No’s

Never outsource work to an outsource provider who will never keep deadlines. Punctuality they say is the soul of business. Just think about it, why go through all the stress of hiring the services of an outsource provider if at the end of the day, the work does not get to the client(s) on time? Time is money!

Never hire an outsource provider whose work is sloppy. Remember, the client does not know that you outsourced the work and even if they know, they will need someone to yell at if the work isn’t done right, and you guessed right, you are the one that they’ll yell at!

So make sure that the outsource provider knows his or her what to do before you even think of hiring them. You can do this by asking for a sample or samples of their previous work. For instance, if you have article writing projects, make sure you ask for writing samples; this will give you an opportunity to know how well they write.

Daven Michaels Author of the book Outsource This!

Malaysia is a nation known for its very attractive business environment, and up-to-date infrastructure and also for the strong support it gets from its government which in turn has made this country a rising outsourcing option to China and India. The Malaysian government has actually positioned Malaysia as a hub for world class technological innovation and services – which has made many top rated multinationals locate some of their global or regional business’ in this country. Malaysia is also a country that has a much more stable political climate (this is important) which is also effectively backed by regular economic growth which has also made this particular offshore outsourcing nation very attractive for sensitive, high-end uses in the banking and finance industry.

Even though Malaysia is still a nation that is exploring its niche, this country has also established authority as a well respected outsourcing destination. Malaysia’s outsourcing industry has been placed together on drawing investments in third party and also captive outsourcing processes from several leading global organizations that cuts across different verticals – Oil and Gas, Banking, sales, Logistics.

You also need to understand that outsourcing in Malaysia has completely evolved (seriously!) Business owners will be glad to know that this country has evolved into offering a variety of services niche and is even integrated in IT, Business Process Outsourcing (BPO) and data processing in a number of industry verticals.

The Malaysian government initiatives are indeed a principal factor in the driving force behind this country’s outsourcing industry. The backing of the Malaysian government has truly helped to form institutions that effectively (and carefully) manage a variety of roles which range from setting up a small business to kick-starting a big company. In addition to this, the establishment of world class facilities and economic advantages has also contributed to attracting more and more companies to this country.

The turn of the century has indeed seen the rapid rise in the number of offshore outsourcing countries, with many countries across the world trying their very best to cut a larger piece or share of the outsourcing marketplace. Well, it is certainly no secret that India, the Philippines and China are the top three leading outsourcing destinations in the world.

There are also a couple of outsourcing destinations that are making their way to being recognized as outsourcing nations to reckon with. These counties are:

·Kenya,

·Vietnam,

·Nigeria,

·Ghana etc

The aforementioned countries have seen growth from their local outsourcing market

Daven Michaels

It is absolutely no secret that India is the country that comes straight to the mind when the word “outsourcing” is mentioned – there is even a new NBC television show titled “Outsourced”. The show is centered around a fictional company which has moved its customer service center to “India”.

When you choose to outsource, this will also mean sharing your business’ control and sometimes sensitive data with an outsourced firm. A lot of people simply see outsourcing as the best thing that has happened to the “business world”.Offshore outsourcing is known to assist in the effective use of resources, skills, investment and technology at an affordable rate. Well, according to the survey carried out by Goldman Sachs, since 2001 about 40,000 and 60,000 service division jobs have been moved offshore – they expect the number to rise in future.

Virtually anyone can outsource no matter how big or small your business is. When you choose to outsource, you basically get competitive edge without making any investment on infrastructure. Taking advantage of outsourcing is really the best option when you notice that you are losing focus on the main issues of your business because you spend most of your time on minor but necessary business facts.

The following countries are known for the competitive advantage they offer clients are:

·Philippines

·India

·China

·Canada

·Singapore

·Malaysia

·Brazil

·Kenya

·Czech Republic

·Poland

Yup, India is a country famous for its outsourcing industries as a matter of fact, “Outsourced” is not the only television show that features Indians and outsourcing centers. There are top Hollywood and Bollywood movies which feature characters that work for outsourcing businesses.

India is one of the top outsourcing countries that a lot of organizations seek when they need to outsource Information Technology tasks. India really stands out as a country that many people recognize but the truth is, if you are searching for an outsourcing country that totally understands the American culture, then you can consider choosing the Philippines. An average Filipino understands the American culture, you will be glad to know that they also have one of the best work ethics among the entire top outsourcing countries in the world.

Choosing a good outsourcing destination is the best thing you can do in order to have a pretty strong competitive edge – so, do not settle for any ole offshore outsourcing firm.

Daven Michaels

Virtually everyone on the planet already knows that China has become a key importer of consumer and industrial goods. May be in a short time, India will do the same. Outsourcing has really stood the test of time.In the early 19th century, the US was actually a poor (yes, poor!) developing country. The European capital assisted in helping to finance the American railroads, canals and even helped to finance new factories while the labor force in the United States began to produce goods that successfully competed with European made goods.

Because the markets were quite open and also somewhat competitive, both the Americans and Europeans benefited immensely from this process. Thankfully, employment creation and economic development took place on both sides of the Atlantic. At the moment, service providers outside the country prefer to use “American made” computers, equipment, software, and telecommunications. Top outsourcing countries also obtain monetary, legal and marketing services from the United States.

There are some job processes that cannot be outsourced because in these particular job functions, personal contact is very important. It will definitely take domestic companies to come up with new products and or services to meet the needs of local customers. You really need to understand that outsourcing is not going to be the ruin of America, as a matter of fact a lot of the people we work with consistently remain close by – do you have to travel to India in order to see a dentist when you have a tooth ache? Or do you have to travel to get a lawyer, doctor, plumber? etc.

You will definitely begin to notice that after sometime that more and more jobs will be created than outsourced in America. The United States is popular for its open labor market – this is a characteristic that is basic to our country’s economic vitality. Do you know that about a million employees are tired of their jobs or simply hand-in their resignation letter each week and an equal number is hired to take their place right away? Agreed, it is a lot harder to lay off workers in countries like Japan and Europe than in the United States. You also need to understand that many foreign companies still come to the United States in order to set up operations and hire Americans to work in these businesses.

So, do not be afraid to outsource business tasks to offshore countries.

Daven Michaels

Offshore outsourcing is known as the practice of employing the services of an outsourced firm to carryout a couple of business activities in a country other than the nation where the products and or services will be sold. Outsourcing has truly grown at a really fast pace, thanks to the development in the following:

·Modern satellite

·Internet technology

·Better connectivity

·A stable search for affordable labor in order to reduce expenses and achieve competitive advantage.

When a business employs the services of outsourced employees from less expensive countries such as the Philippines, India, Malaysia, China to handle its back office and other business functions; the company can cut down on labor costs and of course have the time to concentrate on its core competencies and thus provide better customer satisfaction.

According to a reliable report, the United States companies have saved about 8 billion dollars – all thanks to taking advantage of outsourcing to a top outsourcing country like the Philippines. There are many developing countries recognized for their outsourcing industries, and are patronized by developed countries such as the United States.

The Philippines

One of the great things about this country is its people. An average Filipino is well educated and speaks fluent English – If you are an American business owner, you will definitely want outsourced employees who speak impeccable English. Outsourced employees from the Philippines are known to be quite excellent particularly in front office operations such as sales and customer service.

The Philippines is a nation that has a really massive pool of productive, multi-skilled and teachable labor force. A large number of Filipino outsourcing firms will only employ staffs that are highly qualified for a variety of outsourcing responsibilities. There are many American owned companies in the Philippines.

If you are seriously searching for an offshore outsourcing company that will certainly provide you with outsourced employees that know their onions when it comes to effectively handling work activities such as telemarketing targeted at customers or clients in the United States, you will need to choose employees who speak impeccable English. A reputable outsourcing company will ONLY hire employees who will successfully meet all your needs for your telemarketing department.

Please note

It is important for prospective customers or clients to hear a telemarketer clearly – this way, they (prospective customers) will be able to understand the kind of products and or services that you offer.

Daven Michaels

Let’s cut straight to the chase

China

Yes, it may seem unlikely but in the recent years, China is a nation that is fast becoming one of the top countries that supply offshore software outsourcing this is because of China’s incredible development rate. Even though India is presently the top leader in software outsourcing provider on the planet; right now, China is doing everything it possibly can in order to take over from India so that they can be the top leading player in software outsourcing. Some experts have even predicted that China will one day become one of the top three countries for outsourced software.

Many companies are even beginning to plan their offshore techniques in order to advantage of China’s emerging strength as a top outsourcing country. This plan also includes searching for different methods to take advantage of this country’s present software strengths. There are some assessments that suggest that China’s outsourcing industry could even give India a run for its money as the top outsourced country in the information technology service market.

As a matter of fact, the recent flood of activities that placed China right on the outsourcing world map came as a result of the following:

· Government’s support and promotion

· Japan’s decision to move most of its software development processes to China

· And because some large foreign organizations set u R&D centers in China

India

It is no secret that this country is well known for its outsourcing industry – there is even a television show on NBC titled “Outsourced” which feature outsourced employees in an American owned business customer care service in India. India is a nation that that is known for a labor force with the following qualities:

· English speaking

· Affordable

· Highly skilled

· Educated

This country also boasts of the following:

· World class Information Technology and networking facilities

· Friendly laws

· Well paid taxes

· A somewhat stable political environment

· World class certified software companies.

India’s offshore outsourcing industry is really growing industry and has produced lots of success stories that sure makes India a really popular offshore outsourced country for Information Technology related work and of course Business Process Outsourcing (also popularly known as BPO) services too.

Please Note:

If you are searching for an outsourcing country to handle your customer care services, it is important that you choose an outsourcing nation that totally understands the American culture. India is wonderful when it comes to outsourcing technology related work projects but if you want to capture the American market with your customer service, consider the Philippines, because they clearly understand the American culture.

Daven Michaels

Have you wondered why on earth you need to use outsourced employees? Or you are simply wondering when it is the right time to outsource? Well, the best time you should consider using outsourced employees is when you or your in-house employees really need to take out some quality time to clearly focus on very important business processes, other not-so-important but critical business functions can be successfully taken care of by the (reputable) outsourced company. So, a really good time to seriously think about outsourcing work is when you need to do the following:

·Gain access to world class professional services

·If you are seriously looking for an affordable way to successfully complete office tasks or business processes, in a really quick and effective way.

·If you clearly don’t have the funds to invest in additional or state of the art equipments, software, technology and so on.

·If you feel it is a lot more affordable to have someone else do the work instead of doing it in-house.

·If the job or functions can be done cheaper in-house, but doing this completely drains resources which is very useful somewhere else.

·If the work process is one that you or your staff – as a matter of fact – don’t derive pleasure doing. Many outsourced employees effectively carryout those tasks that many business people do not find pleasurable to do.

·If the expertise required for a specific job is so specialized that it is not at all practical to let a regular employee do it.

·If one of your staff took a vacation or has to leave the office often or if you need to take a vacation or have to be constantly out of the office.

·If you require short-term assistance with projects

·If you just need brief assistance until you get to hire new staff.

“I would love to outsource to my call center service, but I am worried about what people would stay, I just watched the trailer of NBC television series ‘Outsourced’ and some people where really not so thrilled because they think that outsourcing is bad for the American economy”

Whether you choose to believe it or not, everybody in America outsources work! And who told you that outsourcing is bad for the economy? You obviously have not read my article titled “Is Outsourcing Good for America? Oh Hell Yeah!”

Daven Michaels

Of course it is a great idea to outsource your call center service! Before we go to the reasons why some people think that outsourced call centers are a bad idea, let’s first take a look at the benefits of outsourcing your call center service:

·You do not have to shell out money every couple of months in order to invest in the latest telecommunication systems. In case you do not know this, these equipments do not come cheap and I am sure you have other plans that need financing. The outsourced call center service worries about getting state of the art facilities and providing top quality service – your job is to expect results.

·Worrying about employees shirking their responsibilities will be history and you will also not worry about firing an employee for incompetence yourself (most business owners absolutely HATE doing this). Outsourcing companies only hire people who are ready and willing to work and if they have to fire an employee, you will not be the one to give him or her the axe (Yay!)

·Why should you pay for an extra office space for your call center services when you do not have to worry about this and still get top quality service?

·Do you honestly want worry about paying someone who has the habit of calling in sick just because he/she felt like sleeping in after having one too many drinks?! With outsourcing call center services, you will never have to worry about paying employment insurance, staff compensation, and retirement benefits. Outsourced cal center employees are generally dedicated to doing their jobs.

Some people think that outsourcing call center service is a bad idea because:

Accents! Accents!! Did I mention Accents?!

Oh please! Many of us have had the experience of speaking to a person over the phone in a call center in the Philippines or India and most times, we are not able to tell the difference! I’m sure you must have viewed the trailer of the upcoming NBC TV show “Outsourced” where one of the employees at a top Indian based call center service mimicked an American accent PERFECTLY! He even said the word “corndog” the way an American would say it.

Geez, there are so many talented outsourced call center employees that will do a great job answering question from customers, taking orders and so on.So stop hating!Wake up and smell outsourced call center services.

Daven Michaels