While most of the outsourcing activities are coming from the US, some of our local companies have taken advantage of Pinoy BPO industry boom.
Popular local fastfood chains like Mcdonalds, Jolibee and Chowking have their 24-hour delivery hotlines centralized and are using call center services for these. It resulted to a better business for them because it made it easier to dispatch the order from the nearest branch and delivered promptly to the customer.
Local telecommunication giants have expanded their customer services and utilized call centers to answer their customers' inquiries. Banking is done better through a telebanker if one wants to avoid the long lines in bank branches.
While the benefits are there for the local companies to outsource, it not the case for local employees that were laid off because of outsourcing.
It has been reported that more than 3,000 Philippine Airline employees will be affected by the first round of retrenchments because of outsourcing catering, ground and call center services.
Retrenched employees will be given separation pay equal to a month’s salary for every year of service, but I think there's more to it than money. For the retrenched call center employees, a free comprehensive call center training should be given by PAL to prepare them to be competetive and possibly be hired in international call centers. I believe that PAL's moral responsibility is to make sure that their retrenched employees that have been loyal to them for many years, will be prepared to be absorbed by the rest of the Pinoy BPO industry.
Well, there's always two sides in a coin and I hope all best for us Pinoy BPO workers.
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Monday, May 3, 2010
Local Outsourcing, Good or Bad?
9:23 AM
Alex
5 comments. share it here, thanks!:
One of the benefits of outsourcing is that the company can save on every aspect of their business and increase their profits. Another benefit of outsourcing is increased efficiency. While some of its disadvantages are loss of managerial control and threat to security and confidentiality.
Jobs being lost are always are part of outsourcing. These situations can never be advantageous for both parties.
Nevertheless, Business Process Outsourcing is also advantageous for the firm. It makes it more flexible. Fixed costs are being converted into variable costs which make the firm respond to possible changes into a given capacity. Another thing is the company’s focus. It must definitely prioritize its major competencies rather than be sidetracked. Employees don’t have to exert extra effort on non-core processes, thus investing a greater time on core business transactions. A company’s flexibility is also improved because of its increased speed.
In addition, BPO makes the organization very agile. It allows the expansion of a company with the extra help from a perceived ally. While those mentioned advantages are very nice to hear, the risks should still be a word of caution to the firm.
url: http://bposite.info/bpo-solutions/business-process-outsourcing-flows-into-the-business-world/
Nevertheless, Business Process Outsourcing is also advantageous for the firm. It makes it more flexible. Fixed costs are being converted into variable costs which make the firm respond to possible changes into a given capacity. Another thing is the company’s focus. It must definitely prioritize its major competencies rather than be sidetracked. Employees don’t have to exert extra effort on non-core processes, thus investing a greater time on core business transactions. A company’s flexibility is also improved because of its increased speed.
In addition, BPO makes the organization very agile. It allows the expansion of a company with the extra help from a perceived ally. While those mentioned advantages are very nice to hear, the risks should still be a word of caution to the firm.
Outsourcing locally is advantageous for companies giving off the activities like customer service to BPOs. For instance, the company becomes a productive-core-business-oriented by limiting the number of less important workers. Second, less workers means less production cost, which means more profit. Not but not the least, it relieves the companies from dealing with hiring and firing employees. One of the main disadvantage is, more skilled and qualified workers in certain industries like nursing and engineering graduates tend to work in call centers and bpo companies because (1)they couldn't find jobs for their professions (2) the salary is higher than the job they wanted.
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