The economic tumult has taken toll on businesses and industries across the world. And the KPO markets are no exception. Be it the KPO service providers, their employees or even their clients... everyone has faced the repercussions in some or the other form.
Here are some tips for everyone associated with the KPO industry to battle th present economic crisis and maintain their profit margins intact:
For the KPO Clients -
Select the Service Provider with Caution
Price and service quality are the two most important considerations taken into account while choosing service providers for a business. However, the present economic environment has imposed yet another important concern – long term financial stability of the service provider. Small companies who have only a few employees and limited resources and cater to a small percentile of clients might collapse under the financial crisis and even if one of their clients decide to back-out, there processes might be fatally affected. One single key client loss can put their remaining clients at risk because they might not be able to continue providing the same level of services anymore.
Therefore, spend some quality time researching about the potential service providers and choose one that has a scale, good financial backing and a wide client base.
Consider Offshore Outsourcing
Outsourcing is much more than a business strategy that lets you enjoy high quality services at cheaper prices. In fact, offshore outsourcing can be a survival tool in the times of economic calamity. It is very important to remain competitive if you want to succeed in the business world. And with a strategic outsourcing plan and choosing a reliable & professional service provider, you can not only save more jobs but also improve business economics and achieve flexibility and innovation in your business processes. One cannot predict how much time will the economy take to recover from the present situation. Therefore, it is important to consider both the involved costs as well as the operating efficiency, even in emergency circumstances.
For the Service Provider -
Get More Clients
More business from existing clients is always good news. However, don't create a situation where all your business comes from a couple of clients only. Otherwise, if one of the clients, who say, accounts for 50% of your business suddenly leaves, your revenue would be cut by half and you might not be able to survive the blow. Therefore, it is important that you reduce your client concentration and balance the client mix by getting business from more clients. It might be difficult to get work from new clients in the troubled economic times but with strategic sales and marketing efforts, it can be possible. Moreover, businesses that have recently decided to outsource their work would definitely be looking for potential service providers.
Increase your Capital
One of the things that potential clients look for in a service provider is financial stability and access to capital. Therefore, make sure you cover your financial bases well enough. Focus on enhancing your profit margins and get investors who can support you in long term business strategy.
Here are some tips for everyone associated with the KPO industry to battle th present economic crisis and maintain their profit margins intact:
For the KPO Clients -
Select the Service Provider with Caution
Price and service quality are the two most important considerations taken into account while choosing service providers for a business. However, the present economic environment has imposed yet another important concern – long term financial stability of the service provider. Small companies who have only a few employees and limited resources and cater to a small percentile of clients might collapse under the financial crisis and even if one of their clients decide to back-out, there processes might be fatally affected. One single key client loss can put their remaining clients at risk because they might not be able to continue providing the same level of services anymore.
Therefore, spend some quality time researching about the potential service providers and choose one that has a scale, good financial backing and a wide client base.
Consider Offshore Outsourcing
Outsourcing is much more than a business strategy that lets you enjoy high quality services at cheaper prices. In fact, offshore outsourcing can be a survival tool in the times of economic calamity. It is very important to remain competitive if you want to succeed in the business world. And with a strategic outsourcing plan and choosing a reliable & professional service provider, you can not only save more jobs but also improve business economics and achieve flexibility and innovation in your business processes. One cannot predict how much time will the economy take to recover from the present situation. Therefore, it is important to consider both the involved costs as well as the operating efficiency, even in emergency circumstances.
For the Service Provider -
Get More Clients
More business from existing clients is always good news. However, don't create a situation where all your business comes from a couple of clients only. Otherwise, if one of the clients, who say, accounts for 50% of your business suddenly leaves, your revenue would be cut by half and you might not be able to survive the blow. Therefore, it is important that you reduce your client concentration and balance the client mix by getting business from more clients. It might be difficult to get work from new clients in the troubled economic times but with strategic sales and marketing efforts, it can be possible. Moreover, businesses that have recently decided to outsource their work would definitely be looking for potential service providers.
Increase your Capital
One of the things that potential clients look for in a service provider is financial stability and access to capital. Therefore, make sure you cover your financial bases well enough. Focus on enhancing your profit margins and get investors who can support you in long term business strategy.
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