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Freelance & Outsourcing Industry: Difference between revisions
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* 53.9% of buyers are employing at least some US providers, while 84.3% of providers are working for a US-based buyer. | * 53.9% of buyers are employing at least some US providers, while 84.3% of providers are working for a US-based buyer. | ||
=== Outsourcing | === Outsourcing 2008-2009 Recession === | ||
* Over half of the companies in the outsourcing market saw increased contract renegotiations in 2009, primarily caused by the recession<ref>https://gaprivacytech.org/journal/trends-in-outsourcing-emerging-from-the-great-recession</ref> | * Over half of the companies in the outsourcing market saw increased contract renegotiations in 2009, primarily caused by the recession<ref>https://gaprivacytech.org/journal/trends-in-outsourcing-emerging-from-the-great-recession</ref> | ||
* Many companies put outsourcing plans on hold and re-negotiated existing contracts with outsourcing providers at lower prices, in exchange for contract extensions and other trade-offs, such as adjustments to service levels. | * Many '''companies put outsourcing plans on hold and re-negotiated existing contracts with outsourcing providers at lower prices''', in exchange for contract extensions and other trade-offs, such as adjustments to service levels. | ||
==== Global Research Institute ==== | |||
The empirical research is based on expert interviews conducted with BPO clients and BPO providers.<ref>https://d-nb.info/1035291355/34</ref> | |||
As investments were delayed and costs were reduced, the '''BPO market suffered a slowdown from the summer of 2008 until the second quarter of 2009'''. From the second quarter of 2009 until September 2009 when this study was conducted, the BPO market was experiencing a recovery. '''In the aftermath of the crisis an increase in the demand for BPO solutions can be expected as a result of companies pursuing outsourcing solutions to gain flexibility.''' | |||
Companies might consider outsourcing solutions in general as concept to cope with the economic downturn and the increased competition on a global plattform but they are not starting projects during times of crisis and recession. | |||
* Despite the fact, that many companies in the sample were under severe economic pressure, none of them debated apparently BPO as a kind of „emergency‟ solution to overcome the situation. The need for upfront investments and the lack of managerial capabilities to coordinate a BPO solution were often mentioned as key reasons. | |||
* '''Only one fifth of the experts are supporting the relocation to a low cost locatio'''n while the majority believes these kinds of short-term action would at the end create more hassle and issues than help to overcome the problems. Employees to be laid off create a substantial severance burden which can turn out to be deadly in times of cash scarcity: “The 40% cost savings in Asia will fall you flat on your face when error resolution costs will kill the business case in the mid-term” | |||
* '''Outsourcing is not considered an emergency action'''. Furthermore, respondents consider that outsourcing should be a designed and planned activity orientated to gain competiveness from economies of scale, specialization and location advantages, and it should be aligned with the organizations‟ goals and strategic planning. | |||
* From the financial point of view '''BPO and Offshoring are not among the most favored concepts to improve the bottom-line in the short-term perspective.''' Companies prefer cost-reduction strategies and investment delays first in times of crisis and recession. | |||
* '''Outsourcing is perceived, by most respondents, as a medium to long term investment rather than a fast solution''' to improve the competitiveness. And the sensitivity towards investments is another reason that put BPO behind. | |||
Benefits outourcing during a recession:<ref>https://appinventiv.com/blog/why-outsource-during-recession/</ref> | Benefits outourcing during a recession:<ref>https://appinventiv.com/blog/why-outsource-during-recession/</ref> | ||