The Offshore Industry for 2008 Still Looks Bright
Jan 11, 2008
Since August of 2007, the USA has encountered many problems. The subprime mortgage shook the nation, as many felt the effects of the weakening dollar. This phenomenon, however, not only affected the USA, but also the entire world.
The outsourcing industry, who depends largely on foreign countries, is an obvious hit. Fortunately, some speculate that this will not affect the industry, provided that the businesses play their cards right.
1. The "Value Added" Pitch
Instead of competing with prices, CIO predicts that this year, BPO companies and call centers will endeavor to market their "add-ons" - aspects that will not only service the offshore client, but will also give these offshore clients a leverage in closing deals. We're talking flexibility, process expertise, an extremely talented workforce, and a whole lot of innovation.
2. Cost Cutting
BPO companies will be forced to maximize marketing and administrative costs that may have been overlooked back when the dollar was much stronger than local currency.
3. Currency Hedging
With the unpredictable currency fluctuations, currency hedges will most likely be put into place in future contracts with foreign clients.
4. Finding other Fish in the Sea
For quite some time, the US market has been the primary focus of outsourcing companies, as they made up 56% of 2007 BPO/KPO contracts and 67% of 2006-2007 IT contracts. With the worldwide fear of an impending US recession and the growing markets in Europe, Asia, and the Middle East, suppliers are now diversifying their client base.
5. Looking for new Land
While Makati and Ortigas City have always been the obvious choice for call center locations in the Philippines, other less known, less commercialized locations are becoming more and more popular. One province that is gaining popularity is Cebu, who is proudly resting in the list of top 5 emerging outsourcing centers in the world, according to a recent study made by Tholons and Global Services.