Wilmington, DE -- (ReleaseWire) -- 02/24/2012 -- Recession can seem like an unlikely time to go out on a limb and take a chance with outsourcing. But if the alternative is declaring bankruptcy, then giving outsourcing a shot can probably be the best business decision you can take in trying economic times.
Experts are predicting that while the second almost-here recession will definitely have some impact on fields like IT outsourcing, there are many other verticals like the media, healthcare, energy and entertainment that will continue to benefit from outsourcing.
For an SME (Small and Medium Enterprises) in particular, outsourcing is a great way to lower spiraling operational costs and rein in finances and resources – both essential for tiding over the likely economic slump. Outsourcing helps such companies to stay afloat because they hand over their business functions to outsourcing partners who are usually based in another country, have better infrastructure and new technology as well as experts who can work on these functions in a much more cost-effective manner.
Among the fields that will benefit during the recession will be BPO or back office operations. In 2009, Nasscom had predicted that India's back office outsourcing industry was poised to grow at 18.4% that year to reach $14.8 billion. Back office work will be continued to be outsourced to India as it translates into substantially lowered operational costs. The reasoning is that since BPO work is a long-term business, it remains more or less immune from the onslaught of recession. According to an April 2009 Gartner study, Indian BPO providers have dominated the BPO industry, stealing a march over their western BPO counterparts. Gartner expects the BPO market share of Indian vendors to nearly double by 2010-2011.
The burgeoning transcription Outsourcing services will also benefit during the recession. Medical transcription was among the first to be outsourced but now even other fields like finance, forensic sciences, the media and legal industries have also started outsourcing their transcription services to India.
Cost-effectiveness will continue to be the biggest draw as far as outsourcing to India is concerned since it offers the western world an unmatched combination of high caliber professionals and cutting edge technology.
Outsourcing means that a company gets some sort of a breathing space to rearrange its finances and realign its business strategy, and most of all, ease of the pressure of laying off its employees. Contrary to popular perception, outsourcing actually helps generate more job opportunities because the costs saved in outsourcing are then utilized to expand the business.
The changing nature of outsourcing means that today work can be outsourced to not just a freelancer but also to someone called the 'virtual employee'. This remote employee is your employee, working exclusively for you but from the outsourcing vendor's office, effectively sparing you the overhead and maintenance costs. During an economic meltdown, a virtual employee can prove to be his worth in gold because not only is your work not going to suffer, you have no compulsion to maintain the employee or lay him off.
All in all, outsourcing is a company's survival kit during the recession.
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