Outsourcing can define your company fate, so look before you leap

According to a recent survey of company executives who pursued an outsourcing strategy, the number one reason for BPO/ offshore investments was expected cost savings. Yet, 25% of those services who outsourced saw no change in costs. Among those who did reduce costs by outsourcing, the average savings was 19%, well short of the high hopes that typically motivate a BPO strategy. Common factors that affect savings include miscommunication, service quality, & security.

However, not outsourcing is even riskier. The competitive environment has become harsher as a result of a historic market depression. Global competition & automated service processes (software driven) have made it even harder for businesses to strengthen their ROI. The most efficient producer is the one who successfully weaves together the best and lowest-cost segment within their company to the finished product.

The risk(s) of offshore investments segments can be assessed, managed, and controlled through proper strategy & service implementation. Independent outsourcing surveyor, Ventoro Institute, found that the leading causes of failure were a lack of preparation by the American purchaser, exclusion of a joint- operation & communication map, and outsourcing the wrong service segment. Each could be avoided with greater diligence on the part of the outsourcing client. “As a rule of thumb, the outsourcing buyer should be the one pushing for greater clarity throughout the entire engagement”.

Ventoro estimates that proper service strategy could lead to cost savings of 30%, or greater. So, how do you select a strong BPO vendor?

• Communication: A clear point of contact must be available in person. The point of contact must offer practical intelligence & support you in mapping your service strategy. The “point of contact(s)”, are often labeled as the “middle-men of outsourcing” are in many ways a local, and essential agent to the BPO production.
• Quality Control: Check certifications & portfolio. In India, the globally acclaimed program, “ISO 9001-2000” (see example) certifies company(s) for service quality. However, the certification does not guarantee strong ROI.
• Security: If your service maintains sensitive data, ask your BPO vendor to discuss security protocol with you & provide evidence. The ISO 9001-2000 certificate(s) does certify internal security procedures, but does not cover higher level security procedures as required by US federal programs.

BPO specialist, Rohit Barman, the President of DPS America, the exclusive consulting hub for 30 year old global outsourcing firm encourages businesses to “conduct a background check of each company, senior staff members, ask for references, and ensure the company has catered to American clientele for 5+ years.” He adds that “you should never take a leap of faith in outsourcing, let proper research define your leap”. The result of all this is that if a service fragment can efficiently be outsourced for cost savings, it should be. And those who fail to optimize their service by outsourcing will be competing with others who have conducted their research, and gained ground in the overall market share, with greater ROI & investment potential.

DPS Technologies Reaches Out Again – This time to Autism

Of the many state of the art clinical care providers for Autism, the Fay J Center for Autism and Development Disabilities is doing everything they can to help children and adults with Autism and connected disabilities. The multi disciplinary team of Jay J Center for Autism is highly trained and respected in medicine, Psychology, Social World and Special Education.

This center is the National Center of Excellence in the areas of:

1. Clinical Service
2. Clinical Research and Scholarship
3. Specialized program consultations
4. Professional Training
5. Community Education and resource information
6. Advocacy

It makes DPS very happy to know that their diagnostic team is very highly trained & engage in ongoing research to back up their trainings. We hope that our website contribution to their service will increase their online exposure & allowing more funds to be accrued nationally to support their great cause.

Some of our past website contributions were great hits, with the American Airpower Museum being was displayed LIVE on the CBS Morning Show on Memorial Day ’07,  & the Robbie Levine Foundation, which was featured on CNN along with the moving story, drawing thousands of visitors in one night.

Outsourcing to India – BPO vs. KPO

In a declining economy, outsourcing to India has become a fad. So, if you’re a Business looking to outsource,  think about your service, what elements within your enterprise you would like to outsource, & how much of an investment you have to set it up.

In general, outsourcing to India has two basic models for you to choose between:

BPO (Business Process Outsourcing) is the corporate term used for hiring a 3rd party with a specialty in a work area to perform routine duties within their specific niche. In most cases, businesses choose to outsource tasks that are outside the core focus of their primary service. Examples of BPO services are: Accounting, Formatting, Archiving, IT Maintenance, Software Development (to automate internal processes) & Maintenance, Floor plan Constructions, Data Conversions, etc.

In the BPO Model, the contractor rarely speaks to the client, as you, the Primary Service manages the client’s needs.

KPO (Knowledge Process Outsourcing) is the term used for hiring a 3rd party to grow your Business idea. It is a relatively new model, but has accrued quite some interest over the last decade as businesses in declining economies are looking to cut costs. KPO models usually comprise of a Business entity working in conjunction with an International Facility to manage end-to-end internal service needs, by training members in a variety of specialty areas to manage domains within their enterprise. The KPO model’s foundation is reliant on a long-term partnership, where both the contractor and the buyer work closely together to deliver a primary service to the client.

In the KPO Model, the Contractor & the Primary Service maintain a codependent relationship in servicing a client.

A younger generation of BPO & KPO Consultants offer US Businesses unique expertise which includes a thorough comprehension of the American Consumer, more than ever before in the history of outsourcing. At the same time, these 1st- 2nd Generation US citizens have constant contact with their Indian counterparts, understand their language & culture, & demand the vigorous consumer expectations needed by Corporate America.