Outsourcing has been there since the old days where people used labour from countries with low average income and it worked for them.
According to Wikipedia:
“Outsourcing became part of the business lexicon during the 1980s and refers to the delegation of non-core operations from internal production to an external entity specializing in the management of that operation.”
Nowadays there is a boom in the outsourcing industry and it has become a fashion statement that whenever you are talking about cost saving then you should be considering outsourcing in one way or the other. The apparent advantages are cheap labour, low operational cost, etc…
In terms of the balanced scorecard perspective, outsourcing is now spanning all the four major focus areas Including the financial, customer, business processes and training & development. The impact on these areas has been different. E.g. on the business process and training & development side the impact of outsourcing is more significant as compared to the customer side.
Although there has been call centres operating in the sub-continent and other countries but companies using these facilities are reluctant to tell their customers that the person answering their call is some thousands miles away from them. One reason can be that a common citizen doesn’t want to share his/her information with a person from another country thus there is an implicit barrier already in place while outsourcing customer service operations.
On part of the internal customers, the feeling for outsourcing is mixed. It seems that when the internal customers are taken on board while planning for outsourcing they are more satisfied and they feel more involved in outsourcing. This action can minimize the resistance which is offered by the employees. Even if the resistance is not apparent, in general the employees still don’t like outsourcing.
So it is important to take your customers on board because if customers (either internal or external) see an advantage for themselves there will be more chances of making outsourcing a success.
Happy outsourcing…..!
According to Wikipedia:
“Outsourcing became part of the business lexicon during the 1980s and refers to the delegation of non-core operations from internal production to an external entity specializing in the management of that operation.”
Nowadays there is a boom in the outsourcing industry and it has become a fashion statement that whenever you are talking about cost saving then you should be considering outsourcing in one way or the other. The apparent advantages are cheap labour, low operational cost, etc…
In terms of the balanced scorecard perspective, outsourcing is now spanning all the four major focus areas Including the financial, customer, business processes and training & development. The impact on these areas has been different. E.g. on the business process and training & development side the impact of outsourcing is more significant as compared to the customer side.
Although there has been call centres operating in the sub-continent and other countries but companies using these facilities are reluctant to tell their customers that the person answering their call is some thousands miles away from them. One reason can be that a common citizen doesn’t want to share his/her information with a person from another country thus there is an implicit barrier already in place while outsourcing customer service operations.
On part of the internal customers, the feeling for outsourcing is mixed. It seems that when the internal customers are taken on board while planning for outsourcing they are more satisfied and they feel more involved in outsourcing. This action can minimize the resistance which is offered by the employees. Even if the resistance is not apparent, in general the employees still don’t like outsourcing.
So it is important to take your customers on board because if customers (either internal or external) see an advantage for themselves there will be more chances of making outsourcing a success.
Happy outsourcing…..!
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