Author Archives: 123outsource

SEO Optimization is like Acupuncture: So many channels!

March 22, 2014 by 123outsource
Categories: SEO | Tagged , , | Leave a comment

What SEO specialists and acupuncturists don’t realize, is that their two professions have more in common than may meet the eye, or at least the eye of the needle! SEO is a profession where every thing you touch influences everything else in some unknown or unpredictable way. There are uncharted fluctuations in traffic that overlap your fine-tuned adjustments.

There are so many ways to increase the flow of traffic to a site too. There is the Facebook meridian, Twitter, Stumbleupon, Google+, page optimization, and link building meridian strengthening techniques to name just a few more common ways. Blogging is yet another way to boost traffic to your site since blogging is all about fresh content which is something Google respects. Nothing is worse than a site that just sits there, so your blog that gets a new piece every few hours or once a day is highly appreciated by the Google gods.

But, if you add a link to a page, you strengthen the page you are linking to, but you might also be strengthening or weakening the page you linked from. It is not so easy to say. Additionally, if you increase the flow of “Qi” or traffic from your Facebook meridian to your Blog meridian, that also is likely to increase the flow of “Qi” from Google as well. Interesting.

In acupuncture, if you strengthen one energy channel, that can enhance other related channels as well. But, if there is too much energy, or too much of a discrepency in energy strengths, that can lead to weakening or a clash of qi energy. Acupuncture is complicated. So, is SEO.

I am just left with one lingering question.
Can you use Moxa to boost your Twitter PPC campaign?

Tweets:
(1) SEO is a profession where every thing you touch influences everything else in some unknown or unpredictable way.
(2) Connecting your traffic pathways on the internet is good SEO, but can it hurt you sometimes?

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Google+ is delivering already
http://bpo.123outsource.net/2014/01/20/google-is-delivering-already/

Active vs. dormant followers on Twitter
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Why Indian Call Centers Fail

March 16, 2014 by 123outsource
Categories: Call Center, Semi-Popular | Tagged , | Leave a comment

In a recent conversation with an executive who is an expert on setting up call centers in India as well as other countries throughout the world, I learned that a major reason call centers in India fail is poor management. And 90% of call centers in India fail. Start-up companies in India do not consider hiring an experienced call center manager to be a critical part of the first years’ budget! This sets up a vicious cycle that harms the business in three ways:

1) Poor skills and poor salary = poor attitude

When a new call center starts up, the company will very often spend money on everything else: office space, furniture, desks, technology (IT), and equipment. To be sure, these are important… but without an experienced manager from the call center industry, a call center in India will not be able to select, train, and retain the right staff. The company will also not know how to build the business and retain good clients without the expertise of a manager who has worked in that industry. Spend money on an experienced call center manager whom the company, callers, and clients can respect.

Frequently, a call center manager in India will earn the equivalent of $4000 a year…or less. It is not a position that commands as much respect as being an IT manager, for example. So finding an experienced call center manager and rewarding that person more than usual can be good for him/her–and good for business. Instead of going out and finding the best managers they can, companies are spending money on brokers to help them get clients. Many of these brokers demand money up front. Better to invest money in the key employee–a good manager–who will make your call center stand out from all the call centers in India!

An inexperienced call center manager may be distant, inefficient, and ineffective. Any of these problems in a call center in India will lead to failure.

2) Poor attitude = poor environment, poor employees, and poor retention

M any call center managers in India don’t care about finding, training, and rewarding good callers. Maybe they just don’t like people. They may even be rude or apathetic. This leads to caller burnout–and high attrition rate for callers and clients. A manager’s inability to create a good work environment predicts the failure of your relationships with clients and your business. Aim to have a manager who can motivate callers to stay–and become managers themselves!

The lack of respect a manager at a call center in India gets filters down from the manager to the callers to the person on the other end of the phone…which is why Indian call centers are currently not competitive with those in other parts of the world. If you run a call center in India– hire an experienced manager who commands respect and respects others!

Since most call centers in India suffer from 20 to 50% turnover in the first year, it is important to hire someone who can recruit and train a reliable group of callers who will make money for the company.
Which is worse–having to pay staff a bit more each year because they are pulling in good clients and establishing a successful business… or finding and training new callers all the time because management just does not know or care how things are done?

Studies show that work environment is as important as–and often more important than–salary…even in a call center in India where people may be desperate for work. A manager with experience in the call center industry will create a system of rewards that makes the place feel like home.

3) Poor environment & results = poor reputation = The End.

When managers do not treat callers well and do not know how to train callers, the company loses both callers and clients: long-term losses that cannot be reversed. According to a Wharton Business School study, call centers that keep more employees –and promote them from within–maintain a better customer focus and keep their clients. Call centers in India that develop a bad reputation with employees and clients fail in the first six months.
Remember: a bad reputation is nearly impossible to reverse…and certainly cannot be repaired as quickly as it is created.

According to the NY Times, as of August, 2013, business growth in India has slowed to 4.4% per year (down from about 8%). A great deal of this reversal is due to poor management.

Call centers in India are often hesitant to spend money on experienced managers. However, the ones that do spend their money on good managers are the ones that succeed in the long run.

Tweets:
(1) Call centers in India are often hesitant to spend money on experienced managers.
(2) Business growth in India has slowed down to 4.4% due to poor management.
(3) Poor skills and poor salary = poor attitude

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From 100 Indian call centers down to 1
http://bpo.123outsource.net/2014/01/21/from-100-indian-call-centers-down-to-1/

Why a great CEO is worth 6000 times more than the average worker
http://bpo.123outsource.net/2014/03/06/why-a-great-ceo-is-worth-6000-times-more-than-the-average-worker/

Which are the happiest and healthiest countries in the world?

March 13, 2014 by 123outsource
Categories: Of Interest, Popular on Twitter | Tagged | Leave a comment

You might read ten different magazine articles and get twelve different opinions. America seems to be losing ground as a happy country. People are losing faith in the government and see opportunity as something that is less and less. Pessimism has set in.

Denmark and Sweden are some of the happiest countries in the planet. Ironically, Sweden also has one of the highest suicide rates. I guess after you discount the suicides, that cleans out the bell-curve making the remaining overall population seem happy!

I’m reading in an article by Forbes that Luxembourg is the healthiest nation on Earth. Iceland is the safest, and Switzerland is the best governed. Some of the African countries are the most unhappy with low incomes and low life expectancy.

I remember reading long ago that Bhutan was the happiest country on earth with a high level of Gross National Happiness. This ended as Bhutan introduced night-life, fashion clothes and television into their lifestyle. Buddhism seemed to keep them happier than modern culture.

My take on the matter is that countries with these attributes have longer living and healthier citizens: (1) Consumption of Red Wine (2) Fish (3) More whole foods (4) Good healthcare (5) A more casual lifestyle with closer ties to loved ones! My opinions are based on what I was reading twenty years ago. The Greeks and Italians have a much more carefree life, with lots more time spent with family, lots of healthy seafood, vegetables, and red wine. Meanwhile the Americans and Taiwanese are fighting to make a fast buck and miserable every step of the way, developing horrible diseases later in life. The irony is that the over-working Americans went from stressed, to hopeless with the economy slowing down. Why is it so hard to strike a balance in life.

During my visit to Denmark for a spiritual gathering, I was reminded daily how much I disliked their beautiful resort of a country. The people were very helpful, but there was nothing to do and it was boring. The only people who were friendly with me were muslims. The culture of the whites was very frigid to me. But, the people were very happy with their country and their government.

The attitude of the Asian and Middle-Eastern immigrants matched the attitude of the whites — they loved their country (even though they didn’t like each other).

My finding is that it is hard(er) to be happy when society has removed the basic building blocks of happiness from your life. If you are forced to work all the time and not have a family, how can you be happy? If you live near a Whole Foods store, you can still get the wine and vegetables, but the “Family” aisle where they sell ready-made families was not well stocked last time I was there.

In the USA, we live in a country of broken families and unhealthy lifestyles. It seems that the only way to be happy is to engineer your life according to very carefully prescribed guidelines. Take enough time off. Spend enough time with others. Relax. Meditate on the cosmos. Don’t think too much about the future. Enjoy what you are doing. Don’t forget about the red wine. Oh — and don’t forget to smell the flowers! In short — engineer the right attitude.

Tweets:
(1) Are the happiest countries in the world necessarily the happiest? Does money make you happy?
(2) Why are the Danes so happy while the Americans are not?
(3) Swedes are one of the happiest people on earth, but they also have the highest suicide rate.

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http://bpo.123outsource.net/2013/08/11/wealth-consciousness-and-why-it-is-essential/

The mindset of a millionaire
http://bpo.123outsource.net/2013/08/05/the-mindsetof-a-millionaire/

Most BPO blogs use cheap looking pics

March 11, 2014 by 123outsource
Categories: Marketing, Semi-Popular | Tagged , | Leave a comment

I poke around the web regularly. I often read other people’s blogs to learn a thing or two about online marketing, social media, the world of outsourcing, and more! I noticed that people generally include some sort of photo or graphic on their blogs as a picture. What I noticed is that these pics are normally very cheap looking. They look like the $1 kind of graphics that you buy on some cheap graphics site.

The question we need to ask ourselves is, what is the value of a good photo? If your blog gets lots of traffic, it might be worth it to invest in better artwork. If your blog leads to measurable higher ROI for your business, you might invest in a little bit better artwork. If your home page on your website has cheap looking art work, that is really bad. Blogs come and go. Many people write several blog articles per week or even per day. It gets expensive when you spend $40 per photo day after day. But, for your home page, I think you should spend more than $2 for graphics, don’t you?

I did a little number crunching to see what the benefit of good photos was on blogs and on facebook. My research was not very conclusive since we were testing during the holiday season when stats go up and down depending on what day it is. But, you can get 20-80% more action on Facebook posts if you have a good picture. It really depends on your audience and your business, so it is worth trying it both ways and then counting the number of likes and responses to see if your expense in art was merited.

The bottom line of this article is:
If you are making money, or intend to be making money, lose the cheap looking art work buddy!

Tweets:
(1) If you are making money, or intend to be making money, lose the cheap looking art work buddy!
(2) People normally add a pic to their blog entries. But, these pics are normally cheap looking!
(3) Cheap looking pics on BPO Blogs are expensive in the long run. If they help you to lose business!
(4) If your blog gets lots of traffic, invest in better artwork.
If ur blog promotes cheap looking artwork, never mind.

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Roadblocks in the BPO outsourcing profession
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Why a great CEO is worth 6000 times more than the average worker

March 6, 2014 by 123outsource
Categories: Of Interest | Tagged , | Leave a comment

I was discussing this issue with a friend the other day. She thought it was not fair that a particular CEO was getting paid roughly 6000 times what the average worker was at his company. She thought the CEO was paid unfairly too much. I also found it not fair. I thought that perhaps the CEO might deserve much more than 6000 times what the average worker got. But, why?

Workers are commodities
Unless you have some special personality or skill, you do the same work that millions of others can do. Your wage is subject to a market rate based on what you do, how long you have been doing it, how reliable and good their work is, and a few other factors. People with specialized jobs like teachers, salespeople, CEO’s, etc., are not commodities. The subtle differences in their work can make a huge difference in profitablity.

The mechanic who was fast
If a mechanic comes into work in the morning, he can do “x” amount of work. If he is fast, he can do a little more, and if he is incompetent, he can get the garage in a little bit of trouble. But, the scale of trouble he can create is no larger than the particular car he is working on (assuming there is no multi-care collission caused by his carelessness installing brakes). A well seasoned (greased) mechanic compared to a functional beginner might be worth 3x the salary.

A tale of two teachers
But, let’s imagine differences in quality of a teacher for example. Joe the teacher comes in, bores his students all day, nobody learns much, and they all go home feeling depressed. Frank the teacher on the other hand is not only charismatic, but studied advanced techniques in learning styles and applies 30 different learning techniques that no other teacher in his town have even heard of. Frank got his students not only to stay awake in class, but think outside the box, do two hours of homework nightly, and amount to something in life. Frank’s contribution completely changed the destiny of 30 students, not to mention thousands of people who those students would interact with over the course of their lives. Therefor, Joe deserves $40,000 per year, but Frank gets $45,000 because he is putting in the extra mile. In real life, the school systems prefer Joe, because he doesn’t rock the boat, and Frank would probably get fired. But, in my mind, Joe should get $20,000 per year and Frank should get $150,000. The output of their work is drastically different and their effect on society is not even something that we can measure.

The miracle CEO
A good teacher can make a much larger benefit to society than a bad teacher. The difference in effect could be ten fold according to my style of thinking. But, choosing a CEO for a large company is much more critical than which mechanic or teacher you choose. CEOs are not workers. They don’t actually “do” anything. CEOs make decisions. They allocate funds. They hire and fire critical people in the company. They make long range decisions. They buy and sell huge assets.

A good CEO might think through a purchasing decision very carefully, analyzing all of the details and using very meticulous skills to make his decision. Imagine if a mediocre CEO made the same decision, they might buy a factory in the wrong location, or at the wrong price, the wrong size, or overlook some other critical aspect of the transaction. It might be only 70% as efficient as the one the smart CEO purchased. A single bad decision like that could cost a company 10 million per year for twenty years. That is 200 million in lost assets because of a bad CEO. A real CEO might make ten big decisions per year as well as many smaller decisions. If a CEO hires a dynamo Vice President who helps the company gain 20% market share, that could be worth 20 million the first year. A bad CEO might hire the wrong Vice President and lose an equal amount, or simply maintain the status quo instead of actualizing growth potential. The scope of how important a good decision is, is staggering.

Doing the math
Let’s say that the average worker at ZYX Company makes $20,000 per year, and the CEO makes 20 million per year. That is 1000 times as much as the average worker makes. Is it fair? If you put even the smartest of those workers in the CEOs position, how much money would they lose the first month through bad decision making? They could lose 20 million per month. Is it worth paying 20 million a year so that you don’t lose 200 million per year? Saving a little money by purchasing the services of a less than perfect CEO can cost you much more than their salary in losses or lost opportunities. Look at the bigger picture!

Tweets:
(1) Shelly says its not fair that the CEO gets 6000x the average worker. I feel he deserves more!
(2) A good CEO can save a company millions, train workers, and drive a company to success!
(3) A CEO’s salary is not based on how much he works, but the quality of his decisions.

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Call Centers in India: Is an English Accent Important? Just do Your Job

March 1, 2014 by 123outsource
Categories: Call Center, Popular Posts | Tagged , , | Leave a comment

Necessity–or Prejudice?

Do you feel you are somehow getting better service when someone at a call center in India speaks with an English Accent? Is it better to speak with someone who speaks perfect clear English but who is not energetic or helpful? Which person gets your respect and trust? These questions actually go right to the heart of our attitudes and beliefs about customer service.

Americans are notorious for complaining about companies who use callers from call centers in India because they are hard to understand, do not understand the other person’s accent, and do not inspire confidence. The conventional wisdom is that if you are calling native English speakers, your call center will do better if you have callers who speak with an English or American accent. Call centers in India that call people in the U.S. generally do better when they hire native English speakers. This is what the mainstream media generally reports.

It is possible, though, that Americans have become suspicious of foreigners and just aren’t willing to compromise on what they want. They feel uncomfortable with accents and immediately remember their jobs are being taken away be “these people.” According to a 2011 Q&A session with professor Steven Neuberg in Scientific American, “People who are foreign to us are more likely to pose certain kinds of threats” and are not seen as having our interests at heart. They are more likely “to take more than their fair share” and to cheat us. Currently, the Better Business Bureau and many other organizations that are reputable and influential have blogs that include consumer comments on “foreign” accents. The FTC itself has a website blog “Fraud Affects 25 million people” that includes many consumer comments demonstrating suspicion about foreigners. If foreigners are cool– should we condone such comments? If outsourcing is going to work–shouldn’t we be extra careful about what we say and publish? The spin on foreign accents always seems negative, never positive.

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English is The Cat’s Pajamas

That expression, by the way, is an English slang expression meaning “the top” or “the best.” Just how important is your accent?

According to most surveys, neutral English accents are preferred; people do not mind talking with someone from a call center in the Philippines, for example, because that person can speak clear English. That is a major reason why call centers in the Philippines are getting so much work lately: native English speakers want to interact with those who speak English.

Listen to the Information, Not the Accent

However– what if you are a highly motivated and reliable worker at a call center in India and you do not speak perfect English? A call center manager who employs callers in various parts of the globe told us that if your Indian accent is not particularly heavy–but you understand the person’s questions, can explain everything clearly, and make a good impression–you can do just as well as native English speakers if you just do your job.

Doing your job at a call center in India means conveying the message, getting a positive response from the person at the other end of the line, maybe making a sale or giving good advice about a product, and not having that person hang up on you or complain. If the person has gotten good information, he or she will not feel the caller with a foreign accent has been dishonest or unreliable in any way.

Just Do Your Job

If you are able to convince the person you are calling that you understand what is being said, and if you can respond in an upbeat manner with good suggestions or comments, you may do just fine.

I would rather hear from someone at a call center in India who is positive and smart than someone who sounds lazy and stupid but speaks perfect English. I don’t care what the person’s name is if I can understand what is being said and I get some good information. I am not worried that this person will take jobs away from the U.S, because that person is a human being who is trying his or her best…and where the jobs go is beyond my control. The success of the conversation depends only on whether the person is doing the job.

If you work at a call center in India, you owe it to yourself to try to speak clearly and give the very best information you can. Be natural and helpful, and don’t worry about the person on the other end of the phone. Just do your job!

You might also like:

Call centers in the Philippines are getting more expensive than India
http://bpo.123outsource.net/2014/03/30/call-centers-in-the-philippines-are-getting-more-expensive-than-india/

Why Indian call centers fail
http://bpo.123outsource.net/2014/03/16/why-indian-call-centers-fail/

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Tweets:
(1) Is it more important to have an English accent or to just speak clearly and do your job?
(2) Many Indians think a UK accent is the way to get ahead. Being helpful counts more!

Call Center Blues: Does Credibility Matter?

February 25, 2014 by 123outsource
Categories: Call Center | Tagged , , , | 1 Comment

What is Credibility Anyway?

It comes down to trust. Basically, credibility means you are offering something worth listening to. Whether you work in a call center in India or a call center in the Philippines, the people you are calling need to believe you have information that can genuinely help them or improve their lives in some way. They need to feel you are calling to offer them something, not just to take something from them.

Here are three simple steps that actually create credibility:

The people you are calling need to hear that…

1) you have a name they can understand and will like.
Saying your name too quickly or in a way that sounds like you do not like your name will not create a reason for the person to want to find out why you are calling. Announce your name clearly and confidently at the beginning of the call. Imagine you are calling to tell them they have won a million dollars; the sound of your voice will make people want to listen!

Call centers in India often suggest a false name; however, using your real name (if you are allowed to) can be just as effective–if you are pleasant, upbeat, and knowledgeable. If you are required to use a false name, make sure it is one you choose and feel comfortable with. Saying your name with confidence and pride is the number one step in the entire process of creating credibility! People want to talk to someone who sounds like he/ she is worth talking to.

2) you know the name of the company you represent, and the name of the person you are calling. One experienced manager of a successful call center in India points out that a skillful, upbeat caller can create confidence and elicit a friendly response in less than one minute just by the way he announces his name, company name, and the name of the person he/ she is calling! On the other hand, if you mispronounce a name like you have never heard of it before, it shows you are not a friend or someone worth talking to. It does not create credibility.

3) you offer accurate and interesting information (name, address, account number, relevant product information–if it is a customer service or sales call). After you confirm their name, it will also help create credibility if you confirm any information you know about them (Do they own a particular product you are calling about? Do they live in Cleveland?). Even if you are from a call center in India that is nowhere near where they live, you can make them feel they know you by making them feel comfortable that you know something about them. Then, offer them new information in a way that is engaging and upbeat.

Two Known Facts:

Succeeding at these three steps in the first two minutes is proven to help people listen better, understand you better, and become engaged in the conversation.

A pleasant conversation creates warmth and builds credibility…and doubles your chances of success in making a sale or resolving an issue. People will feel you are right there in the room (or certainly in the same country)…instead of in a call center in India–or anywhere else.

Tweets:
(1) You gain credibility in a call center by having a pronounceable name & being able to interact
(2) A pleasant conversation creates warmth and builds credibility & makes the sale!

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http://bpo.123outsource.net/2013/12/01/7-habits-of-successful-salespeople/

Where is Warren Buffet investing his money?

February 21, 2014 by 123outsource
Categories: Success | Tagged , | Leave a comment

Where is Warren Buffet investing his money?

Many people look to the stock market for a source of quick gains. You can lose as much as you can gain. Fancy brokers have analytics that can tell you which stocks are trending up, and which are trending down. But, in the long run that is not definite and tells you nothing about what will happen several years from now. Investing in stocks is like a marriage. If you pick someone with the right intrinsic attributes you might be better off — at least that is how elderly people in India think.

The rest of the world is excited about Facebook, Starbucks, Apple Computers, and Twitter Stock.
But, Warren has his money in proven winners. He likes investing in companies that have a dominance or almost a corner in the market that they are in. He likes companies with a long and proven stable and consistent track record, intrinsic value, etc. He likes companies that have a sustainable competitive advantage! He also likes companies that are undervalued, and whose long term price per earnings ratio are favorably low! future earnings potential is another huge factor! He likes Coca Kola, IBM, Wells Fargo, Exxon Mobile, and many other very old and stable companies to name a few!

Fun stocks that are popular with the public like Facebook might make you feel good when you are purchasing them. But, they often are overvalued. Smart investors look at the price per earnings ratio of stocks before a purchase. But, what a company made in the last twelve months means very little. What matters to me is how their earnings have been over the last ten years, and whether their earnings show steady growth, stagnation, instability, or decline! If your stock’s price is 100 times as high as its yearly earnings, not only is it unlikely your shares will have future earnings, but if the stock stops being popular, you could lose your equity fast.

On the other hand, stable companies like Coca Cola, Walmart, Proctor and Gamble, and other pillars of society are likely to be around in forty years. Their profits are steady. Those might not be exciting or glamorous stocks, but you will be more likely to retire with them than some of the newer and less stable companies.

Tweets:
(1)Many look to the stock market as a place for fast gains, but you can lose more than you gain!
(2)If you pick stocks with intrinsic value, you will be better off in the long run

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Twitter Stock — a good idea?

February 20, 2014 by 123outsource
Categories: Social Media | Tagged , , | Leave a comment

I love Twitter. I am a tweetaholic if there is such a thing. My new Twitter and social media manager’s name is Arielle. I joke that if your Facebook does well it goes viral, but if your Twitter account grows like crazy it goes Arielle! (Aerial). But, take a look at their stock. Twitter has been losing money, and yet their stock went from $41 to about $60 in the last few months since their stock went public. I’m not saying that you won’t make money with Twitter stock, but it is gambling when you purchase a stock that is losing money with the hopes that it will grow out of control and turn a profit.

I think it is likely that Twitter will continue to grow and perhaps make huge profits. But, social media is very unstable and new with very little track record. The social media landscape changes so quickly, it is hard to predict if the big guys will be able to adapt to market changes. The big question is whether or not Twitter can sell advertising to large companies. They are doing this now, but can they make it profitable in the long run? This is very unclear.

I think Twitter could make it big, but it could get into bad financial trouble too, and your stock has a high chance of becoming worthless as well. Buying stock in social media is a gamble in general. I think that oil companies are much more stable as an investment these days. Low p/e ratios, and very stable business models. Just close your eyes when you ponder what they are doing to the environment.

If I were a bird, I would like Twitter stock, but I’m a human who drives a gas powered cars. I’ll stick to oil stocks for now!

Tweets:
(1) I am a tweetaholic if there is such a thing, but should I buy Twitter stock?
(2) I think Twitter stock could make it big, but could get into financial trouble too.

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Where is Warren Buffet investing his money?
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Outsourcing your government bond purchases?

February 14, 2014 by 123outsource
Categories: Of Interest | Tagged | Leave a comment

If you are looking to invest, international bonds are an interesting investment. Stocks can crash, and stock markets are intrinsically unstable. Long term bonds on the other hand fluctuate with interest rates. Buying long term bonds is a type of financial gambling, but if those bonds are a mixture of international bonds with different maturity dates managed by a professional company, does that make them safer? In my opinion, there is still risk, but a whole lot less risk in that case.

One interesting thing I noticed is that the “safe” countries to invest in are not necessarily that safe. The United States has a relatively low rate of return on bonds, yet we came close to defaulting on bond payments during our government shut-down. Other wealthy countries have low long term bond rates of about 4% or less. In the long run, the debt ratio of these countries could get out of hand, long before your maturity date!

When my investor friend goes out with an older woman, he calls it a “Maturity date.”

Risky countries might not be as risky as people think as well. Look at Kenya, Brazil, South Africa, and Russia. They have long term bond rates from 7% to 12%. When was the last time they defaulted? How high are their debt ratios (not high at all). Do these countries have much civil unrest? Africa used to be a very unstable place twenty years ago, but recently, there are relatively few coups, riots, and rebel uprisings. Somalia seems to be lagging behind from this point of view. Egypt has some serious recent uprisings. Kenya had a small massacre. But, compared to twenty years ago, Africa is safe enough to merit more investment than it gets. Brazil and Russia have their share of trouble, but they are not countries that are going to go under either.

On a more confusing note, look at Iceland and Greece. They were going bankrupt a few years ago, and now you just don’t hear about them in the news. What happened? Their interest rates on long term bonds are around 6-8% which is a lot less than many other countries that never came close to default.

The moral of the story is that we live in a confusing world. If you buy bonds and interest rates go up, you will lose principal. But, if your bonds are overseas, their interest rates in the respective countries might not go up when America’s does which gives you more of a hedge against market instability. Good luck!

Tweets:
(1) International bonds might be stable when stocks crash. A great diversification!

You might also like:

Should your company try a shutdown?
http://bpo.123outsource.net/2014/02/15/should-your-company-try-a-shutdown/

Where is Warren Buffet investing his money?
http://bpo.123outsource.net/2014/02/21/where-is-warren-buffet-investing-his-money/

What does Warren Buffet look for when he hires people?

February 12, 2014 by 123outsource
Categories: Hiring & Firing, Popular Posts | Tagged , | Leave a comment

What does Warren Buffet look for when he hires people?
He looks for people who can manage entire projects with minimal or no intervention. Otherwise he could be micromanaging and wouldn’t be able to grow his businesses!

I tried to apply Warren’s philosophy of hiring to my own business. I read a handful of books by Warren Buffet more than a decade ago. Much of the wisdom that he shared in his books stuck in my head. But, knowledge from reading books is different from street knowledge or the ability to apply your book knowledge in real life.

In real life, you might go through hundreds or thousands of people just to find a single person who can handle part of an operation with little or no intervention. With the other 99.9% of people, no matter how hungry they are, the minute you stop cracking the whip, they stop functioning!

It is so hard to apply Buffet’s wisdom, I often ask myself if it is even worth trying! Maybe it would be worth it to find someone who can handle 70% of my operation with some intervention. That solves most of the problem. Even that task is going to be very difficult to find someone to manage.

To use Buffet’s philosophy, you need to be an expert at testing people out. My favorite technique is to hand them something and see if you hear from them again. If I give someone an assignment with no due date, will they get back to me in 24 hours, in a week, three weeks, or never? This is a very useful analytic. If your new hired hand has a finished result in 12 hours and is asking for more work, that is someone who is likely to work out in the long run. Whether they can manage others is unclear, but at least they get their work done.

If you spend all of your time cracking the whip and micromanaging what everyone else does, you will never have time to grow your business. On the other hand, if you hire people who NEED to be micromanaged, and you don’t, then your will be out of business in a week which is much worse than never being able to grow your business. At least you will have a business!

The bottom line is:
If you can afford to hire people who function on their own then great. Otherwise, be prepared to micromanage your workers regardless of what Buffet says. Remember — Buffet has better access to human resources than you do, so do the best with whatever you have!

Tweets
(1) According to Buffet, you need to hire people who function with little or no intervention
(2) I enjoyed reading Warren Buffet’s books, but applying his wisdom in real life is hard!

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Steve Jobs watched his programmers carefully — so should you!
http://bpo.123outsource.net/2013/10/10/steve-jobs-watched-his-programmers-carefully-so-should-you/

The mindset of a millionaire!
http://bpo.123outsource.net/2013/08/05/the-mindsetof-a-millionaire/

Is bigger always better in business?

February 11, 2014 by 123outsource
Categories: Of Interest, Semi-Popular | Tagged , , | Leave a comment

Indians always think that bigger is better. If you have a JOB at a MNC in their BPO division, then you can marry any girl you want and your life is set. You either have to be a manager at a small company, or work at a big company.

But, after calling large companies all last week, I discovered that the people working there were almost all incompetent. I called smaller companies and there was a sense of function. Not all the people were smart, but you could always reach an intelligent and caring person without too much trouble.

I think we need to get out of the habit of thinking that a particular size, location, or look is better. Let’s just look at what a company is, who is there, what they do, and how they do it. Kabbalah, the Jewish brand of spirituality talks a lot about consciousness. To me, the consciousness of a place, house, business, person, group, or state is the most important thing. You might meet someone who is wealthy, but who has a bad consciousness. Another person might be smart, but crooked or careless. Some people think a lot about words while others preoccupy on artistic matters. Many people are brain-dead and think about nothing all day long.

Take a deeper look at companies. Try to see how they tick. Don’t judge by size. But, there is more. Companies have a sort of personality. Putting aside whether a company is better or not, certain personalities will gel with you. If you are working for, working with, or hiring a company, it is so critical to be compatible with them. Spend some time getting to know people. Don’t be in a hurry to calculate how much you will make or spend. See if you are getting along naturally with them. Ask yourself if you would want to have dinner with any of these people. If the answer is yes, then they might be a potential match for you.

Remember: Bigger isn’t necessarily better. Better isn’t always better either. It is about a happy match of people with the right consciousness that counts in the end!

Tweets:
(1) Bigger isn’t always better. But, better isn’t always better either. It’s about compatibility!
(2) Big companies in India make it like pulling teeth to talk to a competent person!
(3) Don’t judge a company by its size but its personality. Kinda like dating.
(3) Bigger companies aren’t necessarily better. It’s whether you click. If not, hang up and let them hear ‘click’.
(4) Don’t judge a company by its size but its personality. Kinda like dating. But if blind date has “great personality,” beware their size! (retweeted already)

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You are as good as your worst employee
http://bpo.123outsource.net/2013/10/23/an-outsourcing-company-is-as-good-as-its-worst-worker/

The 2% rule; Only 2% of companies are worth hiring
http://bpo.123outsource.net/2013/10/21/the-2-rule-only-2-of-companies-are-worth-hiring/