Answering Service Vicious Cycle

The answering service sector seems to have fallen into a rather uncomfortable trap

. It was reported in the news today that several business firms are not being able to outsource their BPO work because of the lack of finances. The projects are either being put on the back burner, or they are being scrapped in totality. The business answering service units see this as a loss of their revenues. The call centers have enough reason to think so.

Thanks to the shelved projects, the BPO services units are running hopelessly dry of work. They are trying out desperate and sometimes reckless means of cutting down the costs. Taking this a step further, you can equate this unhealthy trend to the concept of vicious cycle that you find in the economics books. Let's take a closer look at this analogy.

The vicious cycle in economic parlance means a network or chain of events that is so irrevocably tied to each other that the connecting chains itself hold them together. A very strong coercive force is needed to break open those chains. Similarly, the call centers are depending on the business firms for their projects. But lack of money is holding back the business firms from hiring a call center. This has a good side to it as well.

Since they cannot hire the call center to handle their calls, they are most likely to continue using the in-house answering service agents. In that case, these telemarketing agents don't lose their jobs. However, the lack of projects in the BPO units causes many of the inbound call center or the outbound call center team to lose their jobs! In either way, there is an addition to the unemployment list. That is the state of dependence that the factors have on each other.

The way out of this stalemate is influx of cash. The business firms need the money to outsource their projects and hire a BPO. But they cannot have this money falling out of the sky! Taking loans in this sort of an economy is too big a risk for the business ventures. Their only way out is to generate enough revenue so that they can pay their way to a call center.

However, the catch is that they cannot maximize their earnings without call center services. They need answering service agents working on their customers and telemarketing means. They need business answering agents to forge partnerships with other business houses and pull up their profits through joint ventures.

The cash could help the call answering services as well. They can canvass for more projects with a wider network of business firms. The same logic applies in this case as well. Without the answering service projects at their disposal they don't have the cash coming in to bail them out of this situation. The situation is a really complex one, with very little purchase of getting out of this rather disturbing scheme of things. It's a case of wide speculation now as to how both parties get out of this quicksand.

Answering Service Vicious Cycle

By: jems hug

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