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BPO

THE STATE OF THE ONSHORE USA CALL CENTER

The US economy is experiencing a record-long expansion with unemployment at the lowest point in 50 years. For most businesses, a growing economy translates into greater prosperity. Consumer spending increases, the stock market and GDP rise, consumer sentiment is strong… all of which usually leads to an increase in the consumption of goods and services, higher profits and more innovation.

IS A GOOD ECONOMY – BAD FOR CALL CENTERS?

However, for labor-intensive industries like the call center industry, a healthy economy can be a double-edged sword.

As more goods and services are consumed, there is generally an increased need for customer service and support. An uptick in the volume of customer engagement channels spurs a higher demand for call center services, both insourced and outsourced. Intuitively, the call center industry should thrive during a strong economy, yet this is not always the case.

In fact, there is an inverse relationship between the economy and call centers. Rising contact volume during times of growth puts a strain on staffing resources. With upswings in the economy, more jobs become available and skilled agents are more likely to switch employers for a modest bump in pay. Turnover skyrockets and the call center bears the costs of recruiting, hiring and training replacements, along with a dip in service quality and productivity as new-hires get up to speed.

Then there is the flip side of the coin: When the economy starts to falter and slow, jobs become less plentiful and call centers tend to fill up. During times of high unemployment, we see less transient and more experienced workers, often with college degrees, applying for call center jobs. This leads to higher quality and retention, and better output from call centers in the USA.

THE IMPACT OF RISING COSTS ON US-BASED CALL CENTERS

Let’s be clear: We’re not saying that, in today’s thriving economy, US-based call centers are not hiring talented individuals or are not delivering quality outcomes—they are. Nor are we wishing for an economic slowdown or loss of jobs. A healthy economy is good for us all, and it should lift all boats. We are simply pointing out that the labor market often dictates the type of talent pool available to call centers in the USA.

There is interesting correlation that exists between a thriving economy and its ultimate impact on costs within call centers. Below are some of the factors that influence these two variables, particularly in the USA:

  • A healthy economy means more jobs are available.
  • More jobs mean more options for workers.
  • More work options lead to increased competition for labor.
  • Call centers compete with other call centers and other industries for employees.
  • Call centers must increase wages to attract talent.
  • Higher wages mean higher costs.
  • Higher costs impact both insourced and outsourced call centers.
  • Higher insourcing costs can lead to more outsourcing.
  • Higher costs also lead to higher prices for outsourcing.
  • The cost to outsource onshore in the USA increases.
  • Higher costs can lead to more nearshore and offshore outsourcing.

Of course, this cause-and-effect is fluid, but it’s generally in line with the trend lines over the past few decades. While there isn’t much empirical evidence proving call center performance and output in strong vs. weak economies, there is plenty of data that is shared among call center leaders and within the call center and BPO communities on this subject.

In our discussions on the topic with top industry leaders, there are several questions that often surface.

HOW ARE US-BASED CALL CENTERS COMBATING RISING COSTS?

Many USA call center markets have become so saturated that sites are reporting out-of-control agent turnover rates. According to Site Selection Group’s most recent Call Center Saturation Report, call centers have been migrating to larger labor markets in the Southeast and Southwest regions of the United States to balance access to a larger candidate pool with lower operating costs and the availability of economic incentives.

ARE WE GOING TO SEE A REDUCTION IN THE NUMBER OF US-BASED CALL CENTERS DUE TO THESE RISING COSTS?

Some call center outsourcing vendors have suggested that their US-based centers are becoming cost-prohibitive. Still, we do not yet see a significant downward trend in USA call center growth, nor do we believe there will be a major slowdown simply because not all US companies that outsource, want their customer interactions handled in nearshore or offshore countries.

DOES IT MEAN THAT COMPANIES WILL BECOME MORE OPEN TO NEARSHORING AND OFFSHORING VS. ONSHORING?

Yes and no. There does not seem to be a major trend line pointing to an increase or decrease in US-based vs. GlobalShoring ™ call centers today. For every client that goes offshore or nearshore, the same number of clients seem to be staying onshore. Every client is different, so the decision to source within the USA or globally, depends on cost models and other variables unique to each company.

WHAT ARE CALL CENTERS DOING TO RECRUIT AND RETAIN TALENT?

Whether insourced or outsourced, virtually all US-based call center operations are currently facing the same challenge — recruiting and retaining quality labor in a high-turnover climate.

Paying higher and more competitive wages is an obvious answer to curtail turnover, but with labor accounting for up to 60% – 80% of a call center’s operating costs, it can have a substantial impact on financial models and profitability.

While higher wages are a strong motivator for agents, millennial and Gen Z workers also value employers that provide work-life balance benefits, such as flexible scheduling, part-time scheduling and the opportunity to work from home. Some outsourcers are going above and beyond by offering perks like same-day or next-day payment of paychecks, an onsite daycare or gym, social responsibility programs, attractive facilities with modern amenities (see “Call Center Agent Attrition — Your Biggest Threat”).

Although these types of workplace benefits can help to differentiate the call center as a great place to work, they do incur additional costs that will have to be offset by an increase in revenue or cost-cutting measures in other areas.

The most important factor in battling high turnover and associated costs is the partnership that exists between clients and vendors. What clients do not want is for their outsourced call center vendor to address rising costs by cutting corners — for instance, by easing up on hiring standards for agents and support staff; increasing supervisor-to-agent ratios to the point that supervisors have no time to coach or mentor agents; or peeling off vital resources like training, analytics and business intelligence; or otherwise cutting back in ways that impact call center performance and quality.

FAIR MARKET VALUE OR GETTING MORE BY PAYING MORE?

Interestingly, we’re hearing more chatter than ever about the idea of “getting more by paying more.” But are clients actually paying more, or are they starting to pay what the market dictates?

To change the mindset on how US-based call center and BPO firms should be compensated, we will have to redefine what pricing at fair market value means in the USA. The economy has been robust for a few years and unemployment has been steadily declining to record-low levels, so this isn’t a brand-new problem for US-based call centers.

The price range at fair market value needs to be fluid and adjusted to reflect the current economy. Like all businesses, vendors experience year-over-year cost increases and other pressures, including the rising cost of agent attrition. Outsourced call center vendors in the USA cannot be expected to operate profitably in our current labor market if their contracted pricing is outdated. We can’t expect 2016 outsourced pricing to be applicable in 2019 and beyond, especially if the client is seeking a tier 1 vendor (i.e. elite class) with high-quality staff and manageable turnover rates.

By paying agents a higher wage, vendors will be able to attract quality job candidates, which in turn will reduce costs. One example is training expenditures. Think about how many new-hire classes you need to invest in (both clients and vendors) to reach your desired headcount. Call centers that offer less-competitive wages typically find themselves funneling new trainees through a cost- and resource-draining revolving door. You’ll have less fallout by hiring the right talent up front.

THE VENDORS’ RESPONSIBILITY

That said, what can clients expect from vendors for higher compensation models? They can expect vendors to use modern recruiting and retention practices to attract and retain top talent. BPO and call center outsourcing vendors need to apply smarter, more creative techniques designed to appeal to the next generation of highly skilled agents.

Vendors have got to realize that today’s competitive labor landscape is no longer comprised of vendors vs. vendors vs. in-house call centers. In some respects, they are competing against a good economy. The field is much broader — it includes other industries that are seeking skilled workers. HR and hiring managers must think like job applicants when it comes to formulating effective recruiting, hiring and retention practices for today’s call center environment.

But what if clients increase the compensation models paid to vendors in the USA without seeing a material lift in employee retention, quality and performance? Does this mean that the vendor isn’t allocating increased compensation to where it was intended — recruiting the right talent and reinvesting in operations? It’s more likely that the vendor isn’t managing its operations effectively and the client should look for a better fit with another outsourcing partner.

WHAT WE’RE SEEING

Every client wants competitive rates from their outsourcing vendor. But as we have stated before, if you drive down pricing too far, then expect a commensurate return on investment. If vendors pay their agents $10-$12 an hour in competitive labor markets, then clients should expect high turnover. But if the vendor puts forth a plan to pay agents more and asks the client to participate by increasing the vendor’s contracted hourly rate, then the client and vendor should both benefit from gainsharing.

Recently, several of our clients have agreed to outsourcing contracts that included creative allowances for agent retention and annual increases for cost-of-living adjustments. Most of our vendors with USA sites have increased prices in the past 24 months. Many have increased their hourly rates, training rates and some are now billing for resources such as supervisors and program managers.

We’re seeing a steady rise in positive sentiment on the client side acknowledging the challenges that their outsourced US-based vendors are facing. Some of our clients have already adjusted their contract prices with vendors and are seeing a lift in performance and agent retention while other clients are still gathering the necessary data in order to map out their onshore outsourcing strategy and pricing models going into 2020 and beyond.

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BPO

RESTRUCTURE YOUR BUSINESS POST PANDEMIC WITH BPO SERVICES IN INDIA

Current Coronavirus pandemic has brought the world economy to its knees .It has put many things in clear perspective.

The pandemic has had a far reaching impact on various business processes which was unforeseeable and calls for some drastic changes in the way the processes are being conducted.

The coronavirus pandemic which hit the global arena in early 2020 has so far finished off many business processes with little or no respite so far .The worsening GDP has subsequently proved how unprepared we were to deal with the pandemic globally .

A spike in inflation, faltering GDP, worsening of job scenarios are some of the resultant impacts of Coronavirus pandemic.

The question then arises how prepared we are to deal with such pandemics in the future??

Coming to the business front the pandemic impact has been brutal almost changing the landscape of various businesses .Leading to many tough decisions and harsh outcomes.

Many small businesses and retail companies are facing the harsh reality of bankruptcy amid the pandemic of coronavirus.

What does that hold for BPO services??

Surely the pandemic has created a big mess with widespread financial devastation and many serious consequences.

With this restructuring of businesses seems to be one fathomable viable solution to the widespread mess.

Restructuring aims for the continuity of business for the mutual benefit of all the stakeholders involved.

Restructuring of business results in a number of benefits for all involved:

Cash flow improvement

Preventing Bankruptcy

Improving future business prospects

Saving the company credibility

Post pandemic the most prominent concern is to get the business on its feet .Try to stay afloat and probably reach the profitability spectra of the pre pandemic times at the earliest .Restructuring of businesses with BPO’s is going to be the order of the day .Pandemic has given an opportunity for working in restructuring or cost cutting plans and combat the adverse effects of the pandemic.

It’s fit to say that BPO’s are the backbone of the current financial scenario. A big piece in the economic jigsaw. A big part of the restructuring of business involves cost cutting.

Business process outsourcing services are the biggest player in the cost cutting game .They can help in boosting sales and capacity as well as focus on value added arenas.

The easiest way is to restructure business via BPO services which involve removing wasteful activities, focus on the task at hand and creating a cost effective operating model.

Amid pandemic the services are more and more basic work from home model to avoid the spread of the pandemic further. Which can be operated for the businesses post pandemic hence cutting a substantial amount of cost.

More and more businesses which are currently not operating via BPO’s have an opportunity to avail the BPO services for the new normal post pandemic business operations .

New normal for businesses post pandemic would involve plenty of outsourced work via BPO’s and KPO’s.

The current marketing challenges are the driving force is propagating and promoting BPO services to the  fullest .It can open up unchartered territories creating opportunities where in previously there were none for meeting .

BPO’s are to be the blueprint for the post pandemic business opportunities .Catering to the fundamentals of restructuring of businesses , creating cost effective  and mutually beneficial working models .Striking out wasteful activities focusing on the important stuff , weeding out unnecessary activities and creating a viable business .

The endless opportunities created out of the phenomenon of business continuity with mutually beneficial aims can lead to the best of the situation post pandemic.

It is time to sit up and take a good look at the opportunities created via BPO’s and their

Role in restructuring business which is not limited to just profit creation.

Adhering to business norms and policies with new normal business policies thrown in is the current flavor.

Government and public sector bodies need to take up the cause of the BPO’s more seriously for them to flourish post pandemic. The current ongoing coronavirus pandemic has redefined business ideas and operating models with new normal working modules.

The global struggle with the coronavirus pandemic has far reaching effects with the world community showing more and more faith in Indian BPO’s is also an additional boost for all.

The benefits of BPO’s post restructuring are mainly:

Faster work – The BPO’s are assigned one particular function of the total work hence they can work more efficiently in a more specialized way .Using evolved technology and cost effective techniques BPO’s can help in faster garnering of profits .

Work is done in an effective manner and managing lower labor costs hence saving big bucks .Post pandemic with much of the work directed at WFH (work from home) can prove to be a big saver for all.

Access to latest technology -BPO’s work on latest technology and expertise independent of the businesses outsourcing their work .Not every business is up to the mark in terms of quality enhancement modules which BPO’s can boast of .Another viable reason to outsource work post pandemic when doing damage control to all the havoc caused by the corona virus pandemic.

Cost effective – overall BPO’s are much more cost effective and penny savers. Since the pandemic is going to be the prime aim.

Hence its apt to say that  post pandemic the BPO’s have a pivotal role to play in the restructuring of businesses paving way for better economic liabilities and plausible working conditions resulting in win – win for all.

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BPO

HEALTHCARE CALL CENTER SERVICES: CREATING AWARENESS TO PREVENT INFECTIONS

The world is currently grappling with the corona virus pandemic. It has resulted in putting many a thing to perspective. Health is wealth has been the saying since forever but never ever has this been put so blatantly in the face.

healthcare call centre is not entirely a new phenomenon. They have been around for quite some time now. The modus operandi is similar to the various other call centres. The philosophy behind them is to positively impact a person and put them on a positive health path. A state-of-the-art call centre is the one which focuses on the needs and aspirations of its end users. It’s a two-way street wherein both parties are working towards the same holistic goal of wellness and sound healthcare. Healthcare call centres are al fashioned on the other call centres. The expectations run high and expertise is the order of the day. The idea is to provide customized cost-effective solutions to the customers.

Healthcare call centre services broadly constitute 24*7 set up. With medical assistance helpline, in patient appointment bookings, emergency services, billing and other enquiries, follow up procedural calling, pharmacy helpline, medical device sales. physician, patient pharmacy surveys, Drug &medical devices launch, appointment setting & scheduling etc.

As call centres are the current financial crusaders and can be termed as backbone of a well-oiled service industry. Similarly, Healthcare call centre services can play a much more pivotal role in the crusade to create more and more awareness for preventing infections.

More so in the current era of Covid-19 healthcare organizations have a very pivotal role to play of creating maximum awareness on the current infections and how to beat them. Covid -19 has also taught the value of preventing infections and not repenting later. Many a myth were burst and it almost got humanity on its knees.

A socially responsible healthcare call centres can be the answer to preventing more such infections in the future simply by creating mass awareness.

This would mostly entail:

Mapping out the plan to combat any possible infections.

They can help in providing basic information and preventive steps to any possible infections.

Can reach out to infected people via helpline numbers.

Can tie up with hospitals for managing patient in flow.

Healthcare call centres can act as catalyst to creating widespread awareness on any possible infections in future and also for the ones currently prevalent.

1. By working hand in glove with the healthcare facilities and getting latest updates can be a lot of help in creating general awareness for preventing infections.

2.  Helpline numbers directed to healthcare call centres can help in getting the facts right by preventing any myths and rumors regarding the infections.

3.  Canvassing preventive measures to combat the infections.

4. Communication with the public, health staff, and state and local health departments concerning infection control-related issues to ensure effective measures are in place.

5. Communicating good hygiene practices, possible hazards of infections, advocating balanced lifestyle and preventive measures to the possible infections.

Updates on the availability of the vaccines to combat the infections.

A much bigger role can be assigned to the healthcare call centres in combating and battling infections. For preventing any infection firstly creating awareness about them is of paramount importance. This goes without saying that healthcare centres are set up with providing holistic all-round solution to the customers with a dose of positivity and wellness.

The mass awareness which can be provided vi healthcare call centres has massive benefits.

The government, health care facilities and healthcare organizations can help in creating a campaign to be run via the call centres for creating mass awareness on any prevalent and possible infections Case in point Covid-19 wherein the same has been taken up by many healthcare call centres for greater well-being and extending support to various agencies for reducing and controlling the infection.

It is but expected that some form of infection or other will continue to plague the mankind. In such a scenario creating timely awareness is the key to successfully dealing with them. This may sound like a normal task; however, can be a real harrowing experience if not taken up with a lot of planning and preparation. It might create Covid-19 like scenarios which is not what any state would want. The awareness has to come from much before the infections hit us. Hence the need for robust healthcare call centres to take on the mettle of creating awareness on infections so as to tackle them much more efficiently and extend timely help.

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BPO

HOW TO USE CUSTOMER TESTIMONIALS FOR MARKETING THE BUSINESS?

The BPO industry in India is one of the most promising one. It has emerged in a big way in the past decade and has spread all over globally in a short span of time . Outsourcing customer services to India is a given trend now .It has also trended as the most employment generating and lucrative industry for the youth .Outsourcing customer services to India has been a very promising preposition globally.

Customers are at the core of the BPO industry .As the industry aims at all round satisfaction and the growth and further propagation of business depends on the customer satisfaction hence the main idea remains to go all the way for customer satisfaction. Satisfied customers indicate a job well done and that is what ultimately matters in any industry and more so in BPO industry which though around for quite some time needs to find its feet .What with all the stiff competition around ultimately it’s the customer who has the final say .Word of mouth and C- SAT are at the core of things .With parent businesses taking customer satisfaction very seriously itself says a lot about the same.

Top BPO’s in India definitely follow the mantra of customer satisfaction. Customers are at the thick of things and are the core of any business .One can safely say that they are the soul of any BPO. So one can safely say that customer testimonials or recommendations are what can make or break a business. They are the greatest influencers for any business. In today’s fast paced ever changing world the traditional marketing strategies are losing their hold.

More and more businesses are focused on latest customer inclinations .As customers generally prefer non interruptive, non-committal, or communication without selling marketing methods, the customer testimonials when used strategically can be a real booster in marketing strategy .It’s like saying everything without uttering any syllable.

Now the big question arises how to use customer testimonials for marketing the business effectively .It’s the exercise in trust building .After All trust is the foundation on which any sound business builds up .The big question remains how to use the customer  testimonials for generating more and more business.

Some of the strategies for leveraging customer testimonials in the marketing strategy for enhancing business are:

·       Word of mouth recommendations can act as a big booster for marketing any business. A satisfied customer can act as a marketer for a business .Without shelling out any money we can get good marketing via these word of mouth recommendations .In surveys of Top ten BPO’s the highlight has been the customer satisfaction and subsequent recommendations of the services .One can’t hope to stay on in business if this basic prerequisite is not met..

·       Visual tips can be a big outcome from the customer testimonials and can help in enhancing the businesses .The highly satisfied customers can be the face of marketing for the company .After All everyone loves a satisfied customer .It has mass appeal and enormous benefits in marketing .And while we are at it they can be made more authentic by making them more trustworthy .Real time case studies and authentic customer reviews along with the customer details can be a real deal cincher. It highlights the authenticity of all the customer claims and testimonials .Social media pages highlights. Social media has already emerged a winner in marketing businesses .They are definitely changing the marketing game as well as have taken over the traditional marketing strategies .The customer testimonials can be displayed on the company’s social media pages for mass impact .As testimonials are usually short quotes and can be displayed attractively on twitter, Facebook ,Instagram etc. .Social media has far reaching impact .Displaying testimonials on them can be a winner through and through .

·       Customer testimonials when used as case study can be an effective marketing tool .These case studies can be presented for a specific customer base via demographic  segregation .What went right in the entire episode can be a big boost to the marketing .Call center services companies regularly publish case studies as a strategy in training their workforce and showcasing the performance .Best BPO companies in India swear by showcasing customer testimonials on various platforms as marketing strategy .

·       Customer testimonials can be the start of a demand for a product even before a customer needs it .More often than not the raving reviews in the media etc. catch the potential customer’s attention and does all the trick without even consciously making an effort .

·       The biggest tip could be delivering customer satisfaction via rapport building, trust and fair practices .This itself manifests in huge customer testimonials. How a company can use them strategically to enhance and propagate business opportunities is the biggest deal maker.

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BPO

OUTSOURCING IN INDIA – WAY MORE THAN COST SAVING!

The standard definition of outsourcing is to obtain goods or a service by contract from an outside supplier the term itself suggests the essence of outsourcing .It is made up of two contributing words outside resourcing. In simple words it is nothing but business practice of hiring from outside the parent company to perform certain services or manufacture goods that were traditionally done at in house set up .The most common reason why a company outsources its function is to save on cost .However the benefits it reaps goes way beyond cost saving .Outsourcing in India has proved it.

When we talk of in Indian context we can safely say that India has emerged as an outsourcing hub. It is one of the fastest emerging industries in India .The success of outsourcing in India is attributed to bouquet of factors .In India outsourcing has emerged in a really big way .With us being recipient as well as giver of outsourcing processes we have a lot more going for us than just business generation .India has always been stated as the land of opportunities and nothing has since demurred the adjective .With Indian diaspora being extremely talented, resourceful and dynamic .Not to mention as one of the few countries with the highest youth population we have a lot going for us .The world has woken up to the fact that such huge population coupled with required assets is the key to unlocking the outsourcing future .We are always at the thick of business things .And doing justice to them. As a substantial proof India has been dominating the global outsourcing market since 2018 with as much as 67% share .So outsourcing customer services to India is a great idea any time of the day.

With so much talent and resourcefulness going around. Its way more than cost saving industry for us…Let’s look at the factors contributing to this statement.

Various global surveys have stated that India is preferred destination for outsourcing .And has been so for some time now .Various factors are contributing to this .Cost effective is definitely the most crucial one but it does not negate the other reasons which have also been contributing to the flourishing of outsourcing industry in India .

The youth manpower in India is a force to reckon with .We are multi taskers, English speakers ,dedicated ,talented with the right amount of skill sets .Passion and dedication also thrown in the process. It’s usually a delight to work with the flexible workforce Always .Ready to adapt and learn.

India already has a well-defined infrastructure and conducive environment for outsourcing to flourish and it goes much beyond cost saving .The delight of working with self-learning and adaptable workforce is a bonus .Also the outsourcing in India comes with its own perks .Outsourcing work results in greater productivity, innovative techniques and reduced costs as well as an experience of a lifetime .Outsource your call centers to India screams the success story that Indian outsourcing is.

India also is a good market for the finished product as well .It comes as a great benefit for outsourcing in India .Top call centers companies in India are a success story of the stuff legends are made of .There is also a socio angle attached to it as well .Outsourcing has also emerged as a major job provider for the massive work force .The opportunities are endless .And India has woken up to the fact and in a big way.

Call centre outsourcing services offer benefits in multidimensional ways .The client satisfaction is of paramount importance to any parent company ,And Indian call centres have made it their habit to deliver top notch services to the client and are rated quite high on overall customer satisfaction .The outsourcing results in greater productivity ,skill improvement , handling work more efficiently , tackling competition effectively , increased customer satisfaction , retaining clients and getting more and more leads ,seizing business opportunities , having edge over regular businesses . The benefits are endless and so it is safe to say that outsourcing in India is way beyond cost cutting. Outsourcing in India – Way more than Cost Saving

The standard definition of outsourcing is to obtain goods or a service by contract from an outside supplier The term itself suggests the essence of outsourcing .It is made up of two contributing words outside resourcing.. In simple words it is nothing but business practice of hiring from outside the parent company to perform certain services or manufacture goods that were traditionally done at in house set up .The most common reason why a company outsources its function is to save on cost .However the benefits it reaps goes way beyond cost saving .Outsourcing in India has proved it.

When we talk of in Indian context we can safely say that India has emerged as an outsourcing hub. It is one of the fastest emerging industries in India .The success of outsourcing in India is attributed to bouquet of factors .In India outsourcing has emerged in a really big way .With us being recipient as well as giver of outsourcing processes we have a lot more going for us than just business generation .India has always been stated as the land of opportunities and nothing has since demurred the adjective .With Indian diaspora being extremely talented, resourceful and dynamic .Not to mention as one of the few countries with the highest youth population we have a lot going for us .The world has woken up to the fact that such huge population coupled with required assets is the key to unlocking the outsourcing future .We are always at the thick of business things .And doing justice to them. As a substantial proof India has been dominating the global outsourcing market since 2018 with as much as 67% share .So outsourcing customer services to India is a great idea any time of the day.

With so much talent and resourcefulness going around. Its way more than cost saving industry for us…Let’s look at the factors contributing to this statement.

Various global surveys have stated that India is preferred destination for outsourcing .And has been so for some time now .Various factors are contributing to this .Cost effective is definitely the most crucial one but it does not negate the other reasons which have also been contributing to the flourishing of outsourcing industry in India .

The youth manpower in India is a force to reckon with .We are multi taskers, English speakers ,dedicated ,talented with the right amount of skill sets .Passion and dedication also thrown in the process. It’s usually a delight to work with the flexible workforce Always .Ready to adapt and learn.

Categories
BPO

5 KEY REASONS TO OUTSOURCE PAYROLL PROCESSING

OUTSOURCE PAYROLL PROCESSING

Outsource payroll processing are well and truly established that  future of India in a big way .We have taken giant leaps in the  outsourcing field .This brings into focus that it’s high time to outsource payroll processing  as it involves a lot of tedious work and attention to detail execution. Payroll processing involves engaging the services of par external ty to handle all payroll related activities .Payroll processing is definitely a very tedious and time consuming process involving a lot of man-hours and is also a costly affair .Not taking external help can result in losing focus from crucial business activities.

The trend to outsource payroll processing is definitely catching up and also gaining momentum steadily  Seamless execution of tasks at hand with minimum errors seems to be the general mantra of payroll processing service providers in India .Many factors are determining this mantra execution to the fullest .Let’s look into five key reasons for outsourcing payroll processing.

Cost Effective -A deal which wins all   

Outsourcing payroll processing is a good idea. The cost effectiveness figures highly in the decision to outsource payroll processing .The amount saved via outsourcing can be effectively utilized in other key areas of a company and can be basis for further growth and expansion .This is definitely one of the most decision influencing factor .As every company focuses on cost effectiveness. This is the primary reason why outsourcing companies exist in the first place. The big businesses can still do without the payroll outsourcing as they have robust accounting and payroll structures .However the small and mod size businesses lack these and keeping the payroll processing in-house can be quite an expensive task .What with the cost involved in maintaining the various departments concerned with payroll being quite an expensive task. Payroll outsourcing companies in India have been doing some exceptional work and are gathering lot of favorable opinion. Payroll outsourcing involves outsourcing key players like HR and accounting services to service providers for more effective results

More accuracy and High Quality standards 

The services provided by payroll processing services are highly accurate with minimum errors .Now this is a great deal cincher. Minimizing errors in payroll processing has always figured high in any company’s agenda .It saves a lot of man work as well as checks grievances .It is such a critical aspect of any business as it is directly linked to employee satisfaction .The maintenance of high quality standards is something which every company aims at .Now this can just be achievable by judicious outsourcing of payroll processing .The outsourcing BPO’s or payroll outsourcing companies in India definitely invest heavily in maintaining high quality standards and minimizing errors. The accounting services are more and more outsourced in India now .The training and quality of the accounting staff is being taken care of by the outsourcing company hence taking a big chunk of crucial activity in quality check .Top HR outsourcing services swear by delivering high quality business to the clients minimizes the risk of frauds .As a key function of  outsourcing the chances of fraudulent activities are also minimized .Outsourcing financial services can result in more meticulous execution of tasks as lot of things are at stake also the additional advantage of up to date advanced technology is at hand and that too within cost .The chances of outsourced company indulging in fraudulent activities are quite less as they are primarily focusing on establishing trust and gaining business.

Gaining access to more advanced technology and that too at lower cost

This can be pretty important for the parent company .Everyone wants to work with the best resources but they come with a cost .When we talk of investing in latest technology this can well be out of reach of a small business enterprise .While outsourcing payroll services indicated that now the company can have access to latest technology and at lower cost .Definitely an attractive preposition.

Enabling company to focus on crucial activities 

When the less crucial functions are outsourced the company is able to focus more on the more crucial ones and hence propagate and propel the business .This is one of the biggest ideologies behind outsourcing a function and payroll outsourcing is no different. Payroll outsourcing is a tedious process involving a lot of accounting and time consuming activities with a lot of cost involved in regular updates and training of the payroll staff .The chances of errors are also quite high in the function .This eats into the time required for focus on more crucial aspects as payroll processing is a tedious and time consuming process.

When the cost effectiveness and seamless execution of tedious tasks with minimum errors and meticulous performance of the payroll outsourcing companies comes to the picture it definitely presents a very lucrative offer .The benefits are at much higher level than cost involved hence it results in a win -win situation for all involved. All in all payroll outsourcing in India seems to have a bright future .Many BPO companies in India are undertaking payroll outsourcing as key business.

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BPO

6 KEY FACTORS THAT INFLUENCE YOUR BUSINESS FINANCE & ACCOUNTING OUTSOURCING SUCCESS

Outsourcing is the latest fad in the business world .Every business worth its salt has been trying to enter the outsourcing arena .Why is business financial and accounting such a lucrative option for outsourcing companies is actually quite simple. One gets to have the best of best via outsourcing the specialized fields like finance and accounting .It’s not only a financially viable option but also entails that the best brains are available within the budget .So basically if one wants to have reduced costs, best of the best brains, latest technology and expertise at hand then outsourcing is the only way forward for the following key reasons.

Enabling to focus on the key business

Finance and accounting are actually one of the most outsourced business activities of all. When the companies outsource the accounting and finance function they are able to concentrate more on their core functions .Thus enabling them to have a more profitable preposition .This is why more and more smaller as well as bigger firms are looking at outsourcing this function .`

Cost effective

Outsourcing the business function is definitely cost effective and pocket friendly .Getting the best within the budget seems to be a big motivational draw for the company’s .The decision to outsource the functions is firstly and fore mostly looked from the budget angle and outsourcing companies definitely fit the bill. For this sole reason alone there has been mushrooming of accounting outsourcing service companies in India. More and more BPO companies in India are looking at expansion in this arena.

Now Let’s look at the below key six factors greatly influencing the success of A & F outsourcing companies in India :

 Pricing 

Optimal pricing strategy seems to work best in the accounting and financial success of a BPO offering accounting and financial outsourcing .Too high a price and budget goes for a toss and too low is a big demotivational trigger .To get the best out of the service provider and have a win – win for all the parties involved .Now pricing can be further done in terms of FTE (full time model) OR transaction based pricing model. FTE model involves paying basis time and material investment of the service provider .While on a Transaction based model the price is fixed basis the number of transactions performed .However more and more BPO companies are employing Hybrid pricing model which is a better preposition to ensure success in the outsourcing .

Method

The method for ensuring success in accounting and financial outsourcing depends to a large extent on the method of outsourcing .Some companies choose to outsource the entire accounting and financial function while some only outsource a portion .Sometimes different functions are outsourced to different accounting and financial outsourcing companies. Cost benefit analysis plays an important role here in decision making .Which could to large extent help in boosting core functions of the company.

Location of the service provider 

Choosing the service provider from the right location is also the key factor determining the company’s success story .Now location with concentration of talented manpower pool, skilled and reasonable cost is a big draw .Cost of logistics, transportation, training, currency differentials, inventory costs etc. are also factored in for making the apt decision .Right location definitely boosts the cost saving and hence greater profit margins.

Customization 

The greater the customization the more are the chances of business expansion and success .More and more companies are looking for customization to suit their needs .We can surmise that the F & A process for an automotive firm would be different from a healthcare firm .Adaptation and customization could be the extra ingredient for smooth sailing and expansion of business .Tailor made is the word .Nothing works better than adapting to the different arenas via customization.

Security of Data involved 

Utmost care needs to be undertaken to ensure that sensitive information is not leaked and accessed by the others .Confidentiality of data needs to be ensured at every step of the way .This is simply non – negotiable .Data centres had to be hack proof .The security arrangements are needed to be discussed at length with the service provider .Frequent audits and restrictions are the key words here .Only designated person to have access to the critical data.

Returns

Regular feedback and cost benefit analysis are the order of the day if success in outsourcing is to be attained .Regular feedback helps in timely mending of the loopholes and much of the wasteful activities can be done away with .Improvement in operating costs, enhancements in timely delivery of processes, ensuring compliance at all levels are sought actively .If these are not achieved then losses will mount and cost -benefit ratio will go for a toss.

Companies swear by the above mentioned key determinants to ensure smooth sailing of A&F outsourcing as well as heightened profit margins and least security breaches.