US Financial Meltdown, Economic Recession & Outsourcing
It seems that growth prospects for the business process outsourcing (BPO) industry remain bright despite a general slowdown in the global economy. Terms like US Financial Meltdown, Economic Recession would be like sing songs to the Indian BPOs who would be looking at grabbing a pie of the BPO businesses as US businesses would need to become leaner to effectively manage their costs without compromising on quality.
US companies are under tremendous pressure to reduce cost and increase revenue and therefore the impact on business process outsourcing would be fairly obvious. The need to offshore and outsource non core but essential business processes will stem from the need to cut costs and rationalize resources. Outsourcing will grow as this helps organizations to become nimble and efficient by offshoring as these are non-discretionary spending especially on IT. and related services. In the immediate to short term there will be pricing pressures that the service providers will have to combat.
During the Call Center Expo and Conference held recently, executives from call center companies said they believe that the ongoing recession in the United States, where a huge chunk of Philippine business process outsourcing or BPO clients are, will be beneficial in the long run since it will create more opportunities for the country.
Dan Reyes, president of Sitel and director of the Contact Center Association of the Philippines (CCAP) said that the US recession may have some negative impact only in the immediate term.
Lets wait and watch as the data entry of statistics is done and results are collated.
US companies are under tremendous pressure to reduce cost and increase revenue and therefore the impact on business process outsourcing would be fairly obvious. The need to offshore and outsource non core but essential business processes will stem from the need to cut costs and rationalize resources. Outsourcing will grow as this helps organizations to become nimble and efficient by offshoring as these are non-discretionary spending especially on IT. and related services. In the immediate to short term there will be pricing pressures that the service providers will have to combat.
During the Call Center Expo and Conference held recently, executives from call center companies said they believe that the ongoing recession in the United States, where a huge chunk of Philippine business process outsourcing or BPO clients are, will be beneficial in the long run since it will create more opportunities for the country.
Dan Reyes, president of Sitel and director of the Contact Center Association of the Philippines (CCAP) said that the US recession may have some negative impact only in the immediate term.
Lets wait and watch as the data entry of statistics is done and results are collated.
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