Business Process Outsourcing - What's IN, what's out?

Over time, each company undergoes periodic domain bins, driven mainly by changing market dynamics, competition, innovation and technological advances. In this context, business process outsourcing is no exception, although compared to other major economic sectors, has a relatively short history. Even in its short history, which can be traced back to somewhere around 20 to 25 years, the domain of outsourcing has seen significant changes, both in terms of physical changes and characteristic. Since the understanding of these changes and their implications is necessary for both customers and suppliers to fulfill the function of outsourcing more appropriately, we have meticulously identified some of the most significant changes that have occurred in the outsourcing sector over the past two decades. Here are some clues as to what's inside and what is OUT in the outsourcing industry:

What's IN:

Greater attention by giving preference to long-term business objectives more short-term gains of business. For example, cost reduction, which was the primary goal above, is currently given the same importance as a quality improvement processes and levels of customer satisfaction. An effort to create and sustain long-lasting business relationships with the service provider. Previously, the majority of outsourcing deals are based on limited period contracts, which often fueled insecurity and suspicion between the parties involved.

An increase in the number of small and medium businesses hire outsourcing services. Previously, outsourcing services have been undertaken mostly by multinationals, troubled by rising operating costs and increasing inefficiency.

The use of automated tools and customer service systems, which aim to reduce the workload of customer service professionals, and also to improve the security of transactions. For example, automated systems, such as IVR (Interactive Voice Response) have made it safe enough for customers to transact online by credit card.

What's OUT:

The intensity of protests against outsourcing that has been fueled by incremental loss of jobs. Over time, many people have realized that something good for U.S. based companies, can also be good for the nation as a whole and perhaps even help the global economy.

The end of an era in which suppliers have been termed "third party" suppliers. The term can still be used, but more often it is now replaced by "strategic partner". This may seem cosmetic, but it really means a drastic change in the general perception of outsourcing.

The monopoly of a few number of service providers, grouped in a specific geographic location. With the advent of significant changes in the IT and telecommunications, the ability to undertake outsourcing projects is now available to any company or country that has the skills and competencies to achieve the desired goals and objectives. The wishful thinking that outsourcing will eventually reach saturation and that will be the end of it all. With emerging subdomains as KPO (Knowledge Process Outsourcing) industry does not seem to be heading that way.

If the pessimists had their way, we could never see ice on Mars. This is why both customers and suppliers need to throw their negativity and insecurities and instead work toward common goals and objectives, creating a win-win for everyone. The resources are there, as are the opportunities - the only thing needed is the will to achieve greater heights of success through business process outsourcing .......