Motif is ranked amongst
‘The Global Outsourcing 100’ – Rising Stars category by IAOP (International Association of Outsourcing Professionals)

Everest Research: Trends in Offshoring

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Everest Research Institute, the research division of Everest Group, an outsourcing advisory firm, recently announced that it expected labor arbitrage -- the key cost-savings benefit of offshore outsourcing -- to continue to drive sourcing decisions for the next 30 years. …At the same time, Everest said that fears about rapid wage inflation and a growing skills shortage in India as well as other offshoring destinations were "largely misplaced."

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As Business Process Outsourcing (BPO) continues to experience market growth with an increase in a diverse array of deals and engagements, executives cite reducing costs (41.2%), driving innovation (35.3%), and the ability to focus on core competencies (14.7%) as the main drivers when deciding to use BPO in a corporate strategy, according to the annual survey conducted by IDC and Capgemini.

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In the past few years there’s been a great deal written about Governance; yet, it’s still a misunderstood subject. In most cases, it’s an afterthought only considered once the “transaction” is complete and the Provider is selected. Unfortunately, this practice relegates Governance to no more than a box to be checked off on the path to program implementation. In order for Governance to have a chance to realize the business case for which it was created, it must be more than this.

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U.S. President George W. Bush on Friday ruled out protectionist measures by the United States to counter the loss of jobs in the country because of offshore outsourcing.

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With the launch of the Nasscom Assessment of Competence (NAC), a national industry standard assessment and competence test, the business process outsourcing (BPO) industry is set to get a boost. NAC, modeled on the GRE and GMAT tests, would provide BPO companies a reliable mechanism to tap fresh talent from all over the country.

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Riding the offshore wave

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Two thirds of all Fortune five hundred companies offshore their back office processes. The challenge is to figure out how you can ride this wave for your company to differentiate your services and gain competitive advantage. Your US based team can focus on building better client relationships and growing your business without increasing operations costs.

Here are a few things to keep in mind:

1. Remember: Not every process can be off shored. Consider processes which are ‘repetitive’ and ‘rules based’. Any paper or form that has to be processed with pre-defined guidelines can be scanned and made available to an offshore location. Data needs to reside at your servers and the remote location only accesses and processes the transaction.

2. Start small. Define a simple pilot process to understand first hand how it all works. Add one process at a time.

3. Define SLAs which clearly set expectations for both sides. Ask for a process migration plan designed specifically for you.

4. If possible, visit the offshore partner to experience their work culture. Interact with their grass roots operations team members without their management team present.

5. Most important of all: Identify a vendor who has a track record of providing similar services for large US companies for a few years. Ask for testimonials.

6. Ask if the partner has any application development experience to re-engineer or enhance your processes. Your offshore partner’s quality has to be better than your internal quality. Else, it is not worth the trouble.

The author, Kaushal Mehta, is the Founder and Chairman of Motif, Inc., a specialized BPO (Business Process Outsourcing) company providing back office transaction processing services which require decision making and personalized email response services to Fortune 500 clients with a five plus year track record of 100% client retention. 
(www.motifinc.com)