Pitfalls in working with larger BPO firms

December 20, 2011: When it comes to off shoring or outsourcing business functions, firms often look out for top Business Process Outsourcing (BPO) companies in India or any other location as listed by agencies like Gartner or NASSCOM. Outsourcing to a top player seems to be a safe idea to the firm, but certain studies and surveys conducted by independent researchers and universities have proved otherwise. Outsourcing to a top player is a pitfall that firms can avoid if they change their focus to mid-sized outsourcing service providers who are in better control of their operations.

The studies and surveys conducted have shattered the myths about outsourcing to top players in the industry.

The increasing number of clients and the spectrum of operations along with high employee turnover as a result of mounting pressure have resulted in a situation where the leading players miss their deadlines now and then. They somehow manage to deliver the service, but on a long term perspective it will lead to loss of time and money. Where as in the case of mid sized service providers, they are more focused and effective in terms of time bound deliverables.

Most of the top offshore outsourcing companies across the world are affected by employee attrition. The reason for high attrition in the industry is the high amount of pressure associated with the work, routine BPO operations and the tough working hours. As a result, most of the companies regularly recruit and hire fresh executives which hamper the performance of the operations. This directly impacts the quality of the service delivered.

The top players in the BPO industry have delivery centers across the globe, which makes it difficult for them to centrally control all the operations. This has resulted in confusion, miscommunication and mismanagement at times.

Another drawback with outsourcing to big players is with the attention paid to the clients. With a large number of clients to cater to, the top players lose their ability to give individual care and attention to each and every one of them. However, with a small client base, the mid sized BPO service providers will be able to provide individual attention and increased value to the clients. Mid sized players put in their full effort in every stage to gain the trust of the clients, which results in complete client satisfaction. 

Top BPO players will not be a favorable destination for freshers who seek jobs as there is lot of pressure associated with the job. Employee attrition thus becomes quite high. So once employed, executives should find their own means to de- stress and develop a positive attitude towards work. So employees won’t stick to a top BPO firm for long, unlike in the case of mid sized firm.

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