We have witnessed its luster and its continuous
gleam over years, but is it really rusting now?
Offshore outsourcing has been prevailing in the
business world for years. It has also been one of
the best contributors of great economic revenues
for the deteriorating Philippine economy. And as
predicted by a number of economists, it will
continue and will grow further on the next years
to come.
But this is not a sure thing as circumstances can
be changed by fate. And now here we go.
As the number of benefits it brings to the
business industry grew day by day, so as its
negative outcomes which somewhat hinder the
industry for continuously growing. But according
to an informal website survey conducted by
Computer Economics, these negative impacts of
outsourcing are not having any negative effects
in the use of outsourcing by business. In the
survey’s results, 33 percent of the respondents
are already outsourcing offshore and intend to do
more in the coming years. On the other hand, 50
percent of the respondents have no plans yet of
doing it at this time. Moreover, 11 percent of
them are not doing so but are preparing and
planning to in the future, while the remaining 6
percent of the respondents are planning to do
less outsourcing.
As the sponsoring website
indicates, business will follow further offshore
outsourcing in the future.
On the other hand, the outsourcing opponents
should look at the 2005 Deloitte study, “ Calling
a Change in the Outsourcing Market”, which
discloses that a number of enterprises are taking
a closer look at outsourcing after experiencing
less than stellar outcomes. As the study shows,
70 percent of the respondents surveyed testified
off-putting experiences with outsourcing
projects; 25 percent say they brought outsourced
functions back in-house, while 44 percent did not
get the expected costs savings from their
outsourcing projects.
Why does this happen? While 70 percent of the
respondents who have been surveyed said cost
savings as a propeller for grasping outsourcing,
38 percent of these respondents said they paid
additional, hidden costs for services which are
not include in their contracts. The 57 percent of
the respondents who told the necessity to put
into practice the standard, quality and
advancement when building outsourcing
relationships responded at a 31 percent clip that
once a contract was signed, outsourcing salesmen
become contented.
There are also other problems cited which include
too much inflexibility from binding contracts
that prevent flexibility when amendments are
needed and the findings that salesmen have not
gotten the capacity to give the level of costs
savings and quality expected by the clients
availing the outsourcing services.
It is clear from the fact that the quality of the
standard that the outsourcing services are
showing right now is gradually deteriorating.
Therefore, the industry should take appropriate
measures to improve the nearly stinking,
once-quality-approved service provider available
at hand.
Let us not let the once-gleaming outsourcing
industry take its way to the junk, instead,
repaint it with sure hopes by doing what it is
proper to be done.
