Archive for the ‘Vendor Sourcing’ Category
How to Choose a Direct Marketing Provider
Friday, July 1st, 2011Outsourcing Success Stories from Two Major Corporations
Monday, June 20th, 2011
What results can you expect from outsourcing? You can gain some insight on that topic by examining the experiences of top companies who outsource.
The Hackett Group, a financial research firm, reports that “World-class companies out¬source a substantially larger portion of their IT processes [44.5% compared to 30.2%] than peer group companies: close to half of all their technology infrastructure-related processes.”
Bank of America recently turned some of their programming work over to an offshore provider, with excellent results; the company has saved roughly $100 million since 2001.
But just as important was the impressive savings in time spent developing new products and services. By sending some of its work offshore, BofA became a 24-hour company. At the end of the workday, California programmers could hand off projects overnight to colleagues in India, who would continue the work and hand it back the next morning.
BofA’s chief technology, service and fulfillment executive, Barbara Desoer, says of the experience, “There’s a lot that we’ve learned from our vendors that we’ve been able to bring back to the U.S. “
Technology is not the only area in which top companies are successfully outsourcing. The IBM Corporation outsourced its contact center needs through TeleServices, with remarkable results. The company experienced a 97 percent reduction in the cost of customer contact and shortened their outside sales cycles by up to 80 percent.
The contact center agents, who received training to acquire the needed IBM product knowledge and customer service skills to represent the company, were able to generate 125 percent of the company’s goal for sales leads.
IBM customers reported that agents exceeded their expectations in 78 percent of calls. The call center provider also created a marketing database of customer data to improve targeting and responsiveness and increase customer retention.
Why are top companies outsourcing now more than ever? Business Week magazine put it succinctly, “Outsourcing is a strategic tool that can react faster to the demands of the marketplace and their customers. It allows companies to shift gears quickly while not losing their emphasis on maintaining the core business”.
Four Top Countries for Outsourced B2B Services
Monday, June 6th, 2011
Which countries offer the best selection of outsourced service providers?
Forbes Magazine recently published its appraisal of countries that currently provide the best options for U.S. businesses looking to outsource. Based on data compiled Electronic Data Systems and neoIT, a global outsourcing advisory firm, this list can help businesses narrow their search for quality offshore vendors. Here is an overview of four of these countries:
India boasts several outstanding technological universities, including the Indian Institute of Technology, universally regarded as one of the world’s best. Salaries range from $5,000 to $12,000 for technical staff. Wages for back office functions run from $3,500 to $7,500.
India’s redundant telecommunications infrastructure offers excellent reliability within the country’s specialized IT parks. India is currently the leading provider of IT functions such as software development and maintenance, as well as business process outsourcing (BPO), including human resources, accounting, data analysis and call centers.
Providers in the Philippines are well acquainted with U.S. accounting procedures and customer service values. Companies in the Philippines have low employee turnover. However, labor costs are higher than in India; annual salaries for tech employees are between $5,000 to $10,000, and back office salaries range from $3,000 to $8,000.
If you operate within one of the country’s IT parks, the government will allow exemption from export taxes, fees and licenses. The government maintains a task force responsible for the development of IT and BPO services. Telecom infrastructure is reliable. Areas of expertise in the Philippines include finance, accounting, call centers, human resources and animation.
Russia has the third largest population of engineers and scientists per capita. Few of them, however, speak English. Annual IT salaries in Russia range from $6,000 to $10,000. The country hasn’t yet developed back-office competence. Telecom infrastructure costs are higher than average.
The Russian government adheres to outdated tax laws that do little to facilitate business. However, future treaties with the U.S. could instigate positive changes. There are few technology parks in Russia, and infrastructure outside the parks is generally of low quality. Russia offers expertise in Web design, complex software development and aerospace engineering.
Canada offers a near-shore alternative for U.S. companies. However, salaries are considerably higher than in offshore countries, ranging from $25,000 to $50,000. Outsourcing to Canada involves little or no political risk, and the government allows tax breaks on IT exports. Canada has a solid telecommunications infrastructure. Expertise in Canada includes software development and maintenance, call centers and tech support.
How to Perform Efficient Reference Checks
Wednesday, June 1st, 2011Tips to Help You Select a Fulfillment Provider
Wednesday, May 25th, 2011
Your due diligence when considering a fulfillment house will involve researching, networking and following up on referrals. Carefully interview your select list of prospects and visit the facilities.
Here are a few things you will want to consider:
- Your contract – The Mailing and Fulfillment Service Association provides an industry model contract to which you can compare each proposed fulfillment contract.
- Storage fees – Be alert to per-pallet storage (warehousing) quotes. Some companies have a single SKU minimum per pallet, resulting in a minimum monthly charge for each SKU regardless of the actual number of items.
- Package sizes - Note the range of stock carton and Jiffy mailer sizes the fulfillment house offers. Use of excessively large envelope mailers or cartons can result in a substantial increase in postage or UPS/ FedEx charges.
- Avoiding split orders – The fulfillment house should be willing to use special cartons that you provide if its largest stock carton is inadequate. Splitting orders into smaller boxes because larger cartons are not available can lead to excessive shipping costs.
- Specialized cartons -You may need to use a special-size carton to avoid DIM surcharges. Even a fraction of an inch can make a substantial difference in your shipping costs if you ship low-density products in large cartons.
- Returned merchandise options – Be sure your fulfillment house gives you the choice of having your customers send returns directly to you or to the fulfillment vendor. With food and dietary supplements, for example, it costs less to have returned merchandise sent directly to you, since re-selling the item is not possible.
- Your shipping account – Some fulfillment vendors will use your shipping account and others prefer to use their own UPS, FedEx and USPS accounts. Rates and fees will be adjusted to accordingly. You might prefer to take advantage of reduced shipping fees offered by many fulfillment houses.
- Terms of service – Established fulfillment houses guarantee their work and will compensate you for any errors. Still, it’s a good practice to review the TOS for each potential vendor.
You can begin on a small scale by sending just a few SKUs in small quantities to sample the services of a potential fulfillment partner before entering a long-term contract.
How to Manage Security Elements When Outsourcing
Friday, May 13th, 2011
Keeping sensitive company data secure is a major concern for any business considering outsourcing. But these apprehensions do not need to keep you from enjoying the benefits of outsourcing your business processes. By taking several precautionary steps, you can ensure your data is secure, even when using an offshore vendor.
- Have a practical in-house security strategy that includes classification of data and a plan for handling various types of data, making sure you differentiate general information from sensitive data. Your security guidelines should include clearly stated principles and procedures that organization managers and IT professionals within your company agree on.
- Ensure that the vendors you select have a security policy that is equivalent to or even more stringent than your own. This may mean you will need to do some additional investigating to find out whether the provider’s security policies are strictly enforced.
- Ask about the type of deterrence technology the company has in place and the policies involved in its use. Does the vendor enforce these policies among all of its employees, including IT staff?
- Use application firewalls and database monitoring gateways to enforce your company’s usage policy and deter abuse of privilege. Some providers combine both functions, which is optimal. Also, choose a vendor who diligently supervises outbound emails and Internet usage to prevent unauthorized data disclosure.
- Perform regular application, database and network security checks to identify any potentially vulnerable areas.
- Ascertain whether the provider has instructed its staff regarding the proper handling and protection of sensitive data. Information leaks are not always intentional. Some instances of data disclosure occur when employees mishandle data; for example, leaving unencrypted files open and unattended for a time.
- Within your own company, keep abreast of the most recent developments in data security. Staying informed of the technology and processes involved in keeping your data secure will help you stay in control of your company’s security when outsourcing.
How to Select the Right Call Center Vendor for Your Business
Friday, May 6th, 2011Seven Key Advantages of Using Remote Data Storage for Your Business
Sunday, May 1st, 2011
Losing access to your company’s vital data due to system failure, human error, theft, fire or other disaster can quickly translate into lost revenue for your business.
With the services of a remote data storage, or remote online backup, provider you can be sure your important files remain safe and accessible at all times.
Fortunately for small and medium sized businesses, remote data backup services have become more affordable, and it’s relatively easy to find a good service provider.
Online backup systems are usually built around a client software program that collects your data, then compresses it, encrypts it and transfers it to a server. Typically, this process is carried out on a daily basis.
There are several advantages to online backup, including:
- Your files will remain available and can be accessed remotely from any location with an Internet connection. Files stored locally, as on a hard drive, are not accessible remotely.
- Online backup providers adhere to rigorous practices that virtually eliminate the possibility of your data being completely destroyed due to a disaster.
- Your backups will be physically safe. Remote online backup protects your hardware and software against theft, failure, and natural disaster, whereas backups kept on a hard drive, CD or DVD are still vulnerable to such occurrences.
- Online backup services include such security measures as traffic encryption, password protection for stored files and secure file sharing.
- Many online backup vendors offer real-time backup protection at no extra cost, a service that most businesses will want to take advantage of.
- For many businesses, online backup can be much more cost-effective than the offline alternative.
- You will retain the ability to restore your data via the Internet or by purchasing a CD or USB drive containing all the data you have stored on the backup provider’s server.
With remote backup of all your important files, you can be assured that your information is safe and easily retrievable should a disaster occur.
Why Outsource Your Company’s Web Development Needs?
Thursday, April 28th, 2011
Building your brand online with an engaging web presence is an important key to success in today’s market.
Small and medium sized companies who want to remain competitive should take full advantage of all the tools available to create a robust online presence.
From mobile applications such as SMS to fully realized web sites that incorporate interactive media, the way you present your company on the World Wide Web can have a major impact on your future growth.
It can be tempting for smaller organizations to try to handle all the work involved in creating a web site to represent their company. But many of the applications required to build a successful business site involve a considerable amount of technical expertise.
Your web development service provider can also create custom business software, which can be used to great advantage in terms of automating business flow. Custom software solutions can streamline and maximize efficiency in virtually every business process.
A custom business software developer can also design and maintain enterprise web and mobile applications, which enable real-time data sharing and allow access to mission-critical information through a single platform.
Web development professionals can create an application programming interface (API) for your site to enable content sharing within your online community. Content created can be posted and updated in multiple locations on the web. This can have a powerful viral effect on your marketing communications.
Database design is another key area that usually requires the expertise of a professional web development service. A database designer can analyze your existing database and build a development plan that will enhance the efficiency of your operations, improve your business, and increase customer satisfaction.
E-commerce is also vital to any company that conducts business online. E-commerce involves the coordination of several distinct functions; a merchant account that allows you to accept credit cards, a shopping cart to process online purchases, and a web host. Your web development provider can bring together these processes in a way that enhances the customer experience on your web site.
Outsourcing your web development needs can give you access to world-class skills, experience and resources to keep your company on the cusp of online marketing.
