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Cost Cutting in Outsourcing Businesses |
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Written by Cherry
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Tuesday, 19 May 2009 |
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Companies nowadays keep on searching for possible ways to cut costs. Amidst the economic turmoil, outsourcing business became popular and viable to help businesses continue their services while decreasing operational costs. Based from an ICMI study, of all call centres, 65.1% mentioned cost cutback as the focal point of outsourcing decisions. The following are the top five benefits based on the study of ICMI: - lowered operating costs
- extended hours
- better handling of peak traffic
- improved staffing flexibility
- higher productivity
There were reports that vital fulfilment with outsourcing services were received by the respondents of ICMI study. Some are satisfied at 49.2%, some are very satisfied at 39.7%, and others were very disappointed with their outsourcer at 1.6%. Call centers are able to preserve or advance service deliverables by utilizing small part of the cost. The market analysis from Frost & Sullivan which suggests Europe, Middle East, and Africa (EMEA) call center outsourcing market to expand at a stable rate with the positive profitable movement in Central and Eastern Europe. They expect $16 billion increase of market revenues in 2012. Michael DeSalles, Frost & Sullivan Research Analyst, said While the U.K. outsourcing market is fully grown and nearly reached dispersion and there are important opportunities in other European countries. Central and Eastern Netherlands proposed new outsourcing contracts that deal with financial services, communications, and information technology. The cost differential in BPO operations is not adequate. The organization must certify the availability of the resources which includes infrastructure and pool of individuals. The service levels can be maintained while deducting the costs. [via] |