Macro Cost Reduction Through Outsourced Services
- Author Reese Bagwell
- Published January 20, 2011
- Word count 1,326
To say that these are troubling economic times is, at best, the quintessential understatement. Today, US Businesses face a national crisis of unprecedented and devastating proportions. The financial debacle created by the fall of major banking, insurance and other financial houses on Wall Street has produced an inescapable race to cut costs as a matter of perpetuating the very existence of many companies.
While steps to trim such expenditures has always been a perpetual goal to be achieved as a matter of every day accounting, the unparalleled and seemingly insurmountable struggle to fight the exponential reduction in available capital created by the current global economic crisis has made this once routine aspiration a matter of financial survival. Where reduction in capital outlay was once one of several optional means to the end of increasing profits, it is now an indispensable matter of fundamental continued existence.
It is now the prime directive of continued corporate existence.
In this time of a multitude of economic perils increasing at exponential rates on exponential levels, companies the world over are seeking every available means to reduce capital outlay with a particular focus on reduction in employee service-related expenses. Of course, reduction in capital outlay may be achieved in many ways. However, in today’s global economy, there are few means of doing so on a large scale, immediate, comprehensive means across the board.
While outsourcing of some duties may achieve this goal in micro measures, companies today can diminish multiple costs through an aggressive, pro-active course of action for "macro-reduction" of costs on a universal, collective, holistic basis. And in so doing, to their corporate delight, many companies are discovering what they find to be a surprising consequence of such cost-cutting programs: the parallel, corresponding result of increased productivity.
So, what exactly constitutes a program of "macro-reduction" of capital outlay? The quintessential illustration of such a program is that deployed for companies on an international basis by Premier BPO, Inc. This US Company increases the profitability and productivity of businesses of all sizes and functions the world over through a strategic partnership that allows companies to focus on their company’s core competencies, while Premier focuses on theirs: Business Process Outsourcing. By outsourcing their clients’ back office business processes to lower cost geographies, their client companies are cutting costs drastically while being freed up to concentrate more efficiently on their core competencies. And they are delighted to discover that Premier’s teams of service professionals deliver a level of continued strengths and ensure enhanced customer satisfaction which exceed even that previously offered by their clients.
Industry experts such as Forrester Research have recently reported the BPO market to be one of the fastest growing compliments to the business software and service industry, growing to approximately $146 billion in 2008, a projected 73% growth in four years! Industry consolidation, reshuffled priorities and continued budget/staffing cuts are fueling pent-up demand that is resulting in an escalating increase of judiciously planned outsourcing engagements. Therefore, given this level of growth, even if your company has not developed a BPO strategy, it is very likely that your competitors have and, of course, that means that they are saving substantially and your company is not. The logical extension of this state of affairs is the questionable ability of your company to compete effectively while your competition is achieving maximum cost reduction and your company is not.
Simply put, Business Process Outsourcing refers to the increasing trend of relocating certain select business functions or groups of functions to third party service providers, typically in low cost locations. The philosophy behind BPO is quite intelligent – allow your organization to focus on what it does best and leave everything else to a proven, competent business process outsourcer.
Offshore BPO Services and Information Technology outsourcing are exploding markets. While already quite large (just under $600 Billion), it is still in the very early stages with less than 8% of the potential market currently being served. Companies are now considering all activities and processes that can be performed away from the customers as candidates for outsourcing. BPO market is one of the fastest growing categories within the industry. BPO represented an $84 billion market in 2004 and is growing to approximately $200 billion in 2008, a estimated 24% compounded annual growth in the past four years….progressive growth which your company could be enjoying your proportionate share..
And what about that heretofore mentioned by-product of increased productivity? By partnering with Premier BPO, their client companies remove the burden of their "back-room" systems, processes and employees and ensure efficient information handling and back office processes. Companies are discovering that utilizing Premier BPO as their business process outsourcing partner enables them to focus on what they do best, and allows Premier BPO to deliver support in the areas where they excel. At the same time, they are reducing costs exponentially by eliminating much, and in some cases, all of the attendant expenses associated with in-house hiring: workers compensation insurance, unemployment expenses, insurance benefits, etc. Premier BPO works with their clients to create a well-defined series of metrics by which to measure the overall success and quality of their program. Using proven solutions, Premier ensures that a consistent and high quality product is delivered each and every day by deploying highly educated, optimally skilled agents who ensure that their clients’ programs maintain and exceed the level of quality that they demand.
It seems that much of the success of Premier BPO’s company is the superlative leadership team they deploy to every project. This hands-on team is comprised of world class executives that provide a deep bench of management with a well-proven, established track record for success. With an unparalleled 150-plus years of experience of mutually profitable experiences with Fortune 500 companies in the outsourced services business that has successfully achieving increased production and decreased costs at every turn, this team has opened and operated service facilities in 14 countries including those presently targeted by Premier (China, India, Philippines, and Pakistan). Premier’s leadership team has experience servicing these Fortune 500 companies as well as a cadre of small to mid-size enterprises. Their impressive leadership team has extensive experience in administering service operations consisting of dozens of facilities and tens of thousands of agents in a plethora of service platforms. And their successes have universally come from the implementation of consulting businesses on how they can employ "macro-reduction" in their overwhelming cost structures.
As a first mover in the Chinese market, Premier has become very familiar with the Chinese culture and corporate environment. Ironically, the Chinese word for crisis is the same word they employ for opportunity: "Wei Ji" Perhaps this a calculated, strategic move to macro-reduction through outsourcing is your "Wei Ji". Perhaps this is your time of crisis which will present the opportunity for your company to achieve the prime directive: macro-reduction of costs while, at the same time increasing your productivity.
The decision you make for reduction of costs may be to muddle through your current course of continuing the laborious and mind-numbing succession of one micro-reduction after another micro-reduction, never knowing whether there will be enough: enough available categories of reductions, enough amounts of those reductions and, taking this incremental micro approach, enough time. And, even then…even if you are successful in these reduction measures, will you be able to maintain your level of service to your clients? Premier, through its macro-reduction approach can demonstrate to you a paradigm of immediate, effective, assured reductions in your costs, while ensuring that level of production your clients expect and demand.
This is what you have been looking for in these perilous economic times.
This is your answer.
And it is just the answer you have been seeking as the antidote for the hemorrhaging costs that are crippling your bottom line and preventing you from achieving that quintessential level of delivery of services at a compelling cost savings that your clients deserve.
This is your macro-reduction.
Are you ready to take the next step?
For Case Studies, informative white papers and further information definitively demonstrating how these benefits are realized with the 125+ years of experience of our leadership and operations team, please visit http://www.PremierBPO.com and/or call Reese Bagwell at 931.551.8888.Article source: http://articlebiz.com
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