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Process Outsourcing Company – Challenges Outsource Companies in the Developing World Face

There are benefits associated with outsourcing services such as reduced costs, improvement of product quality and access to highly skilled personnel. This is on the client side. For the service providers, it helps create employment and is a source of foreign exchange inflows where the outsourcing is offshore. But a process outsourcing company in the developing world also faces a number of risks and challenges. An outsourcing company can only succeed if it knows the risks and finds a way to deal with the obstacles it meets during the course of business.

One of the greatest challenges facing the process outsourcing company today is the ever-increasing levels of competition. While in the early throes of the outsourcing services industry in developing countries there seemed to be more opportunities than there were businesses to provide them, that is not the case today. There are new companies making their way into the market. Countries such as India that have traditionally held a dominant position in the outsourcing market but have to contend with competition from many other Asian countries such as the Philippines, China, Taiwan, Thailand, Malaysia and Sri Lanka. There is also competition from African countries such as South Africa, Nigeria, Egypt, Ghana and Kenya. Thus, the process outsourcing company that will survive must find a way of adding value to the service they provide to their clientele.

The other challenge facing many a process outsourcing company in the developing world is concentration risk. As the market thins out one must now compete for lucrative contracts with more businesses. Many businesses must now make do with just one major contract. If that contract is for some reason terminated businesses in the developed world may not be able to survive much longer.

Another setback for the process outsourcing company, especially the ones based overseas, is geographical distance and subsequent difference in time zones. Some process outsourcing companies have to resort to having their employees working day or night shifts. Sometimes, this may lead to the lack of sleep and in the long run, the staff mental and physical health as well as overall morale may be affected. Eventually, the outsourcing company may get into a vicious cycle where it tries to meet the client’s expectations but never has the right employees to effectively perform the work to the client’s requirements.

Daven Michaels Author of the book Outsource This!

20 Responses to “Process Outsourcing Company – Challenges Outsource Companies in the Developing World Face”

  1. mike nicolas says:

    Another informative post Daven! I find more information about outsourcing which I am into on this site. Indeed lots of outsourcing company are ow arises, but still I would definitely recommend 123Employee t others as it it the best outsourcing company offshore..Good job Daven Michaels!!

  2. Alyssa Bruno says:

    Hey Daven! I love your blog contents and I am part of your mailing list. I look forward to receiving your Outsourcing tips everyday. I would love to get your Virtual Assistants when I have put together everything for my online business. Your company is indeed the best outsourcing company there is! Highly recommended!


  3. Dane Jones says:

    Great virtual assistants! I am working with one of them, her name is Therese. So far, she’s been great! I love outsourcing with your company. Thanks for all the added information.


  4. MIMI says:

    Nicely Done! :)

  5. Tess Caroll says:

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  6. Deborah Fleming says:

    What a great blog content.
    I am an affiliate of yours and a client at the same time. So far I have been happy with my virtual assistant. No complaints at all. Best outsourcing company no doubt about it!


  7. NiNa says:

    Another Outsourcing Blog! MIMI is right.. It’s nicely Done! :)

  8. Ivory Beau says:

    Well, I think it would be an advantage to the Consumer if there are a lot of competition going on like in the market of Outsourcing for they will have many choices. The Producer will try to be unique and offer better service so that they will be more attractive to the one’s who consume.

    So far, 123 Employee gave me the satisfaction that I am looking for in terms of outsourcing. I am Internet Marketing enthusiast and have my VA to help me out with all things that I need to do every single day!

    Thanks for pointing this out Daven! Looking forward for more of your post.

  9. Jovan says:

    Thank you for this wonderful outsourcing topic.Great job Daven.

  10. I agree that outsourcing services, lessen the cost on your own business, but their are things that are at risk.

    Nice article,.,. lots of information that could help people who are in BUSINESS WORLD,.,.,

  11. abegailscott23 says:

    This blog is fantastic..Two thumbs up for Daven..It’s nice for all the people to know what’s the advantage of outsourcing..A round of applause for this..

  12. Todd Nuttall says:

    It’s great to know all of this info’s We can see how outsourcing really effect everyone’s life.

  13. Isabela Rodriguez says:

    Indeed outsourcing has a lot to offer with business women like me. It is a highly recommended business proposal for those whom are so busy with their job doing a lot of works for their own which is quite unnecessary for persons that wants to relax and chill on. Specially on my case, I need someone that would make my job easier and faster so that I can enjoy my other agenda whenever I want.
    This blog is really helpful. Thanks Daven.

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