Business Process Outsourcing - Surviving in a global market

Outsourcing business processes may just be the difference in a companies success in the longterm. Why? To stay competitive in a global market where we do not have a complete understanding of the impact lead by supply chain integration and the Internet.

The key focus for company CEO's will be to keep key resources focused on critical projects, reduce operational costs while improving profit margins and overall company performance. It's a juggling act. There are pluses and minuses to keeping business processes in-house. The main driving factor for outsourcing is competitiveness and survival in the marketplace.

There is often pushback on outsourcing as employees fear the loss of their job. Companies also need to have confidence in who they outsource to - as they will handle and manage core day-to-day business processes. However, in the swiftly moving market -where customers demand lower prices and search engines can locate them - it is a must to think about where they can reduce daily expenses and while improving margins and company performance.
Another problem in this equation are mergers and acquisitions. In such cases, there are redundant and customized processes. This makes it very difficult for the company to utilize the processes across the company. So Execs turn to the option of BPO.

Some companies have outsourced big deals to "3 letter" companies - while also working into the “deal” the hiring of their employees to manage the process. In some cases the door is also left open for outsourcing the entire data center if the companies operations and profits don't begin to increase. Companies can be creative on how they outsource - but one thing is evident -outsourcing is on the rise and will not go away anytime soon.

In reality - the point is - do you outsource internally to a US company - or do your outsource externally - to a non-US company. That’s the real question. We will have more on this topic in the days to come.