Budget Bpo Firms Rule
This is the age of budget cuts and making do with whatever can be available at lower costs
. Its not any different for the call center sector. Companies are no longer able to afford expensive BPO service firms. They need call centers that are able to provide them what they need with cost cuts. Economics tell us that there is a direct correlation between demand and supply. So, if the demand is of cheaper call center services, the BPO firms have no other option but to cut down their prices and offer the same services at truncated rates. Strangely enough, studies have proved that with shrunk prices, these firms are actually doing better in business than what it used to be when they charged their usual rates.
Why are the companies looking for these budget BPO units? The recession has left the business firms high and dry in terms of financial back-up. These firms had to shelve many
telemarketing projects because they didnt have the money to pay for a call center. After the recession, they have sufficient cash to bring those projects out of the back burner and inject life into them. But the cash that they have on hand is not sufficient to pay for the usual rates of call center services. The business firms began looking for BPO service that would suit their budget. There were lesser firms that were willing to slash down their prices. Finally the stalemate had the business process outsourcing industry by the throat. Projects dried up for the call centers and there was no way the business firms could pay for the telemarketing services.
That is when the call center units decided to bring down their prices. It was tough. There was the inflation to deal with. The telecommunication prices in several countries were high and the call centers in these countries could not keep up with the international standards in lowering prices. They got into cost cuts through other means like layoffs to make ends meet. But the move paid off! The business firms were always open to the idea of hiring call center services; it was just the price that was holding them back. With the costs taken care of, the BPO firms began to get telemarketing projects to work on. The number of projects they got increased and on a law of average, they were able to break even despite the cost cuts. That was the ideal situation for everyone.
The only hitch in this set up is that some call centers are compromising on quality to break open the cost chart. That is harmful for the call center itself, other than the sector as a whole. This is a time when the entire BPO world is gearing up for better call center services in terms of quality. If isolated telemarketing units failed to live up to the expectations of this collective effort, all the hard work gets undone. BPO service units have to understand their responsibility towards their own business as well as for business process outsourcing industry.
by: Ivana Lewis
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