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Part - X

Business Strategies

• The companies must create unique differentiators that distinguish them in the market. Among the key differentiators are things such as extensive domain knowledge in the legal business or process and a recognised ability to provide innovative solutions using process knowledge and technology. Instead of discrete tasks, the companies should be in a position to provide end-to-end process outsourcing. The real benefits of outsourcing, both for outsourcers and service providers, would come from a process rather than task focus, in the context of outsourcing.

• The tendency today among a large number of the BPO companies is to take on various types of low-end work without being selective about the vertical segment or the process. This will impede their ability to get long-term high quality contracts that ultimately are essential for creating an economically viable business in this industry. Companies considering the long-term advantage of building a quality-centric service delivery model of higher importance than immediate short-term gains through high-volume, low-value task oriented work will survive the competition in the long run.

• The companies must move up the value chain and offer high quality and unique services to its customers through process improvements and re-engineering.
  
  Cost savings and labour arbitrage would cease to be differentiators in the long term as other countries try to catch up. In the long term, process improvements and re-engineering, bringing about real savings either through productivity enhancements or reduction in turn around time or costs would allow service providers to move up the value chain and handle more and more complex processes, higher up in the value chain.

• Big global companies are on the prowl and will continue to be a threat even to better capitalised and professionally managed independent companies. To counter this BPO companies must carefully manage its costs and display a great deal of flexibility and responsiveness to its client needs. These characteristics will make it more attractive service providers then its bigger counterparts.

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*Contributed by -
Shuchi Singla,
Global Business Operations, Semester-11,
Shri Ram College Of Commerce,
University Of Delhi.