subject: The Offshore-Onshore BPO Model [print this page] The Offshore-Onshore BPO Model The Offshore-Onshore BPO Model
The BPO model that we all know about is fast changing its form and content. Traditionally, business process outsourcing work would be outsourced to an offshore destination because it saved costs and clients couldn't afford to spend much on these non-core business works. However, these days, clients are not entirely relying on the offshore model. In fact, if you go by the data thrown up by the independent studies, you will come to know that about 60% of the work is done onshore. Clients want to be close physical proximity with their telemarketing and customer service partners. This has prompted the need for third world country call center companies to buy stakes in the domestic markets of USA and UK. If they cannot buy out, they are getting into tie-ups.
Bagging telemarketing services projects don't happen anymore unless you have a hold on the onshore market. There are several reasons for this. The first one has to be the rising importance of the work that is handed over to the BPO firms. It's not just about non-core work anymore. The call centers are doing everything from customer service, lead generation, web marketing and also back office functions. The clients are sharing classified data with their business process outsourcing partners. So, it's obvious that they get paranoid about the work going away some thousands of miles to an unknown destination. The legal complications in case of data theft or confidentiality breach or other issues are immense. Clients know that they cannot run after a company that is not under the political and legal jurisdiction of their own country.
After the question of security, comes the question of talent and technology. Offshore call centers in countries like Brazil or Kenya cannot match the quality of call center services done in USA because they lack the manpower and the technology. The people they have on board are not aware of what is on the cutting edge of technology. This sets them back in the estimation of the clients who are hiring out BPO work. However, when the clients find that they are tied with a call center company working out of USA or UK, they are assured that the technological and workforce issues will be ironed out. Then, they are not unduly worried about the data or information that they share. They are also convinced to a certain degree that the telemarketing services would go off well.
Offshore call centers have an advantage to themselves, too. They can rely on these new call center mergers and tie-ups to get better telemarketing projects. With rising unemployment in the countries like USA, the business firms there are wary about feeding projects to offshore BPO units when the domestic ones are running dry. There is considerable political and social pressure on them to bring back jobs to the country they are working from. When they outsource the customer service projects to units based in their own country, they can satisfy the patriots. At the same time, the work gets funneled to the units in third world countries. This way, both the parties get the benefit of this model.
