SMEs are now capable of becoming Global Small Businesses. Achieving this of course, requires more than just a vision. Here are the New Year's resolutions that will guide Aussies in SME outsourcing for the next twelve months.
Business needs should drive outsourcing decisions.
BPO has gained a lot of negative press from politicians and Unions. Most believe that outsourcing just means job cuts. However, outsourcing is a business tool and how you use it makes the difference.
Outsourcing doesn't necessarily mean total offshoring. Research shows that Aussie SMEs were able to retain and grow their in-house team by augmenting it with an offshore staff. Vested outsourcing has proven that the business model doesn't need to be a zero sum game.
More importantly, despite political pressure, there are a few actual measures to stop it entirely. The mindset has shifted from job cuts to governance once the issue has cooled off in the media. SMEs should not use political and public pressure as a deciding factor when considering outsourcing.
Focus on business productivity.
The appreciating dollar has slightly lowered the cost advantages of the Philippines over India. The country has managed to become one of the top three outsourcing destinations, but it seems that its own success in the BPO industry backfired. As a result some businesses have found it hard to reach their revenue targets.
Cost savings is not the only concern when, nor the single benefit of, outsourcing. SMEs have to consider service delivery, quality of work and cultural differences (time zone, language, currency). They should look at all factors to determine if an outsourcing option fits the business. Once they have found the right service provider, SMEs can achieve more than just low cost labour.
Seek IT support.
Many emerging technologies gain traction last year. Cloud computing, mobile development, and social media earned a lot of hype. However, these will be rendered worthless if the vendor doesn't have the proper supporting technology in place. If the vendor provider has one, focus should be shifted to the quality of services.
These resolutions seem like common sense, but the next best thing can prove to be distracting. Trends and forecasts are now being rolled out by various market research reports. These three reminders will turn the focus back on the business. SMEs who are aspiring to be the next Global Small Business should not forget their own identity and quirks in favour of the latest BPO trend.
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