| With time, every business domain undergoes periodic | | | | transactional security. For example, automated |
| churns, propelled mostly by changing market dynamics, | | | | systems such as the IVR (Interactive Voice |
| competition, innovation and technological | | | | Response) have made it quite safe for customers to |
| advancements. In this context, business process | | | | make online credit card transactions. |
| outsourcing is certainly not an exception, although as | | | | What's OUT: |
| compared to other major business domains, it has a | | | | The intensity of protests against outsourcing that were |
| relatively shorter history. Even in it's short history, which | | | | fueled by incremental job losses. Over time, most |
| can be traced back to somewhere around 20 to 25 | | | | people have realized that something that is good for |
| years, the outsourcing domain has witnessed | | | | U.S. based businesses, can also prove good for the |
| significant changes, both in terms of physical and | | | | nation as a whole and possibly even help the global |
| characteristic changes. Since understanding these | | | | economy. |
| changes and their implications is necessary for both | | | | The end of an era when providers were referred to |
| clients and providers in order to carry out the | | | | as "third-party" providers. The term may still be used, |
| outsourcing function in the most appropriate manner, | | | | but more often it it is now being replaced by "strategic |
| we have meticulously identified some of the most | | | | partner". This may appear cosmetic, but it actually |
| significant changes that have occurred in the | | | | signifies a drastic change in the general perception of |
| outsourcing domain over the last two decades. Here | | | | outsourcing. |
| are some clues as to what's IN and what's OUT in the | | | | The monopoly of a few service providers, clustered in |
| outsourcing domain: | | | | a specific, geographical location. With the advent of |
| What's IN: | | | | significant changes in IT and Telecommunications, a |
| An increased focus on giving preference to long-term | | | | chance to undertake outsourcing projects is now |
| business objectives over short-term business gains. | | | | available to any firm or country that has the skills and |
| For example, cost reductions, which was the primary | | | | expertise for achieving the desired goals and |
| objective earlier, is presently given the same | | | | objectives. The wishful thinking that outsourcing will |
| importance as improvements in process quality and | | | | eventually reach saturation and that it will be the end |
| customer satisfaction levels. An effort to forge and | | | | of it all. With emerging sub-domains such as KPO |
| sustain long-lasting business relations with the service | | | | (Knowledge Process Outsourcing), the industry does |
| provider. Earlier, most outsourcing deals were based | | | | not appear to be heading that way. |
| on limited period contracts, something that often fueled | | | | If pessimists had their way, we would never have |
| insecurity and suspicion amongst the involved parties. | | | | been able to discover ice on Mars. This is why both |
| An increase in the number of small & medium | | | | clients and providers need to shed their negativities |
| enterprises hiring outsourcing services. Earlier, | | | | and insecurities and instead work towards achieving |
| outsourcing services were hired mostly by multinational | | | | common goals and objectives, creating a win-win for |
| companies, troubled with rising operational costs and | | | | all. The resources are there as are the opportunities - |
| growing inefficiency. | | | | the only thing required is the will to achieve greater |
| The use of automated customer service tools and | | | | heights of success through business process |
| systems, which aim to reduce the workload of | | | | outsourcing. |
| customer service professionals and also to improve | | | | |