American business service outsourcing
In the business, "Outsorcing" means that the company will pay to other companies in a certain price of the company. Outsourcing is not a new phenomenon. Many small companies in the United States will do simple business such as salary issues to professional companies to achieve a thin agency and save costs.
However, in recent years, after the transfer of manufacturing industries, US companies have become more and more business process, sometimes even the business, such as IT programming, telephone service centers, Digital entry, logistics management, etc. Support services are also outsourced to India, China and some Eastern European countries with lower labor costs. Old big company General Electric (GE) is also a subsidiary that specializes in such an outsourcing business in Mexico, India, Hungary and China (Dalian), and transfer the simple office support services of General Electric companies around the world. Go to these four companies.
"International outsourcing is actually part of international trade." THERESA C. Brown, chairman of the US Chamber of Commerce, told "Washington observation" weekly, "Overall intention of service trade - Uruguay Tariff and Trade (General Agreement On Tariffs and Trade) has signed in the early 1990s. As part of free trade, the US Chamber of Commerce supports US companies' work in internationally. "
Reasonable "outsourcing" brings competitive advantage for companies
Some time ago, because the US domestic economy is not prosperous, the unemployment rate is high, the ordinary people have strong response to outsourcing, and the media has a large number of reports, experts, politicians, industry people, labor organizations, etc. . But in any case, reasonable outsourcing can bring numerous competitive advantages to enterprises.
A new study of McKinsey Global Institute (McKinsey Global Institute) shows that the company can save the country and region of the labor expensive country as a labor force from the country to labor. A cost of billions of dollars. The research of Deloitte and other major consulting companies believe that by outsourcing some work to India, US companies can reduce the cost of 40-60%. A large amount of funds saved by outsourcing can be investing in the key departments of enterprises to enhance the core competitiveness of the enterprise. This makes it possible to avoid unnecessary investments, saving costs, reduced the financial pressure of enterprises, and reduces the risk in competition.
The potential to save costs for the company is far more than reducing costs. Some business outsourcing to the outsourcing service providers specializing in the business, not only saving fees, but also increase efficiency, increasing the competitiveness of the company. This is mainly because professional outsourcing service providers have both professional experience, and have a scale advantage, and the service is timely, without the cumbersome length of preparation, it can complete the urgent need of the company, and play an immediate effect. This is in the mall, such as battlefield, time is more difficult to compete in life.
For small businesses, another benefit of outsourcing is to help you break through the size limit, thereby better competing with big companies. Small enterprises have no power to provide services that wealth and big companies are affordable, such as after-sales service. But through outsourcing, small companies can now have the original large company's scale advantage.
Business process outsourcing development
The benefits of outsourcing brought more and more companies move their business processes. Although considering the political impact in the United States, companies often disclose their specific circumstances that have their own business process outsourcing, but most US companies are actively promoting the development of outsourcing business without sound. Even if some people in the United States believe that the outsourcing caused the loss of the United States, causing the unemployment of the white-collar team, but it will maintain its continuous growth as a new industry. According to McKinsey Consulting, the 2002 commercial process outsourcing has a total of approximately $ 32 billion to $ 35 billion, while all of the business process services that can be treated off-site have more than $ 100 billion. That is to say, the current business process outsourcing market is only about 1%. The business process outsourcing business is expected to grow at a rate of 30-40% per year in the next five years, and its total value will exceed $ 1 billion in 2008.
How to further dig the potential of "outsourcing"?
On the one hand, US companies drive out the outsourcing of business process services. On the one hand, pay attention to the outsourcing process to reorganize and design the outsourcing business process, so that they meet the actual situation of the outsourcing, thus maximizing potential advantages, Enterprises achieve greater benefits.
Generally speaking, the labor force in the outsourcing area is cheap, and the company will maximize the relatively intensive facilities of capital, such as the office, telecommunications line, computer equipment and software, etc. to increase the productivity of corporate funds, so the shift of the employee will become an improvement. The most direct way in investment utilization is. The general enterprise's office resources are only used in normal working hours, while in the cheap labor, enterprises can make office facilities to be used until 24 hours without intermittently.
However, in India, most of the outsourcing departments organized by multinational companies only implement a class, even if those enterprises specializing in outsourcing services are only two shifts. According to McKinsey estimation, in many outsourced work, such as financial accounting, procurement, call center, transaction processing, even complex research and development, etc., enterprises can further reduce operational costs by more than 30% by increasing employee work. .
Another way to further reduce outsourced costs is to carry out relatively cheap production materials. Many companies have done this, such as many outsourcing service providers often develop low-cost software developed by local technicians in their services, rather than the expensive software of well-known big companies. Taking American Express as an example, the company's outsourcing business uses a software prepared by the company to make a billing business when providing accounting system services to its portrait. This development cost is only 5,000 US dollars. It is currently used to settle more than 500,000 accounts per day, accounting for more than three quarters of the company's full accounting business. If the company's self-operated, you should use more advanced, more expensive software products, and spend millions of dollars to purchase software use authorization. India's largest automotive manufacturer Maruti Udyog uses a self-designed robot on its production line, and its cost is only a small part of its business partners, Japan's 50-ring (Suzuki).
In technology is a modern industrial society of productivity, reducing the degree of automation of enterprises is not like a good idea, but if applicable, it can reduce the operating cost of outsourcing companies. Domestic expensive labor costs enable US companies to use a large number of automation processing to reduce costs, and when these companies have outsourced business outsourcing, the cost of outdoor labor often makes simple manual operations than automation. In this case, the outsourcing enterprises reducing the degree of automation, and the "human tactics" is not surprising. Take the processing payment business as an example. In the United States, it is necessary to have expensive check scanning equipment and software in the United States, and outsourced can be hand-entered through manpower, thereby saving a lot of equipment investment.
This is also the same, more than 90% of the welding work in the automotive production line of Europe and the United States is done by the robot, and in some of China's car production lines less than 30%. BMW Motors also uses the same strategies in the production plant in South Africa, although the factory should spend three to five times more costs in employee training, but local low payrolls keep the overall cost of the project Low level. Excavate outsourcing potential, create new opportunities for enterprises
By taking power to outsourced business, companies can find new opportunities from these low-cost structures to further increase their income, and their income will also be far more than their annual operating costs.
For example, by outsourcing, some companies now have the ability to handle those who have had had to abandon the arrears because of insufficient men's hand or have high cost. A airline is out of India, not only can save $ 50 million per year, but also returned 75 million accounts owed for many years. And a company engaged in financial services through outsourcing, able to expand the service items that have previously only high-end customers can get to the general customer, which expands the customer group in the US domestic market. A well-known US computer manufacturer outsource its telephone and email from 25-hour customer technical training support to the service business to India. In addition to saving more than 100 million US dollars a year, it has also increased significantly for customers to solve the number of questions, thereby reducing customers with the number of times the same issue and the number of products return, while customers are satisfied with the company's products and services. The degree is greatly improved.
PortalPlayer Inc. is a US Silicon Valley, which produces and designs multimedia chips for portable devices and their drive software. The company hired about 100 engineers in India and Silicon Valley, the United States and India's two groups of people will update research every morning and evening, so that the company's research work can be carried out in 24 hours. Through outsourcing, the company's development costs have been reduced by 40%, while the development cycle is shortened for nearly half a year. The old American engine manufacturer Cummins also achieved remarkable results through the establishment of R & D centers in India, and the company's vice president Steven M. Chapman said that there is no existing In the case of research and development funding and non-cutting jobs, "We will be able to launch five to six new models every year, rather than the current annual."
Gauss, Washington Observer Weekly, 2004/08 / 11
