The furore surrounding some unwise moves has undoubtedly caused perception issues that impinge on all significant BPO decisions, no matter how prudent or painstakingly thought through they may be.
But while cost-cutting is an important dimension to numerous outsourcing initiatives, it is not always a vital factor and sometimes does not figure in the thinking at all. For some organisations, the core question is not how BPO can be implemented to save money, but rather how it can help in making money for the business.
Where companies are pursuing a clearly defined expansion strategy, HRDs may well explore how BPO can help deliver that desired growth. This is particularly true when building a business abroad. Faced with an often daunting array of foreign legislation and regulations, employers may feel, rather than investing in the nuts and bolts of creating the necessary infrastructure in-house, money would be better spent on outsourcing, thereby giving HRDs and other directors more time to focus on the important decisions that will drive business growth.
There is a compelling argument that not only can outsource providers support clients in new markets, where they lack infrastructure, but also that they can help companies ‘up-skill’ specific segments that may drive growth, by recruiting the right new staff and developing the skills of existing personnel.