Tag Archives: Outsourcing

The Power of Knowing People for Outsourcing

Categories: Sales | Tagged , , , | Leave a comment

Companies are always asking me how to get more clients for their call center, data entry house, software agency, outsourcing outfit, etc. I have many years experience in marketing and have some sales background too. I read that roughly 50% of sales made in the United States were made between people who know each other. If you are always refusing to make small talk with prospective clients, then how will you ever get to know them? The point is that you make sales by having developed a reputation of being trustworthy, helpful, capable, and having people know you.

If people know you and know that you are not trustworthy, then knowing them will not help that much. But, if you have known people for years, and you are always one of the best people to come to for advice, and you are always helpful, they will WANT to spend money on you. They will feel like they owe you as well. They will feel it behooves them to buy from you because who else can they trust at the level that they trust you?

People who own outsourcing companies in India are typically very reserved. They don’t want to get to know NEW people. They don’t answer their phone. If you get them they are busy or don’t want to talk. If they do talk they don’t want to share much about their outsourcing work. They make me not want to know them and not want to use them. On the other hand I know two really nice guys in Web Design & PHP programming. They do e-Commerce set up, blog set up and stuff like that. They are the nicest people I know in India. I like working with them partly because their work is good, but they are very pleasant to be around.

If you want more outsourcing business, I suggest working on your personality and networking skills. If you make small talk with people who work at Western companies (US, UK, Australia, New Zealand, Canada, etc.), then people will get to know you. Instead of trying to sell them something, just chat. Get to know them, and what their needs are. People hate it when you try to sell them something, but love it when you help them solve a problem. In India small talk is not approved of in business, but in the West it is a must, and you need to master this art. Forget about mastering the art of selling. Master the art of chatting and getting to know what matters to people. Sales is about finding a need and fulfilling it. If you are too busy selling (cramming something down someone’s throat), you will be too busy to LISTEN to what the person actually wants and needs!

Network, Chat, Listen, and understand the power of knowing people so that you can effectively market your outsourcing services!!

Tasty solution to employee turnover: Outsourcing (Apple turnover: Another tasty solution)

Categories: Management | Tagged , , , , | Leave a comment

Do you have a high attrition rate at your outsourcing company? Do you have more employee turnover than you can handle? Sometimes it is better to let an outside agency handle some of your hiring and firing. It makes your life easier, but, can also add a quality of elasticity to your company’s work capabilities.

I remember hiring several companies in India. Every three months, they would give me a new programmer. I didn’t like this. I want to know who I am working with so I know what to expect. But, imagine the hell I would have gone through if I had to hire these people myself. I would lose my mind! It is easier to let these other guys do the hiring and firing, unless you specialize in HR.

Remember, the rule of thumb in outsourcing is:
Figure out what your core capabilities are and do that work in-house
Everything else — outsource, outsource outsource.

When you calculate the cost of a worker, you need to have a formula. Keep this though acutely in your head. The cost of the employee is:

Salary
The office space they occupy
Management Costs
The cost of replacing them if they quit early
The cost of training them
The cost if they damage your relationships with your clients.

This formula clearly shows how it might be cheaper to pay workers more for their loyalty. By the way, loyalty is a word that dropped out of most dictionaries in 2011. Fooling around with new hires could cause you a lot of damage, not to mention what you invested in training them. If you outsourced your HR operation, it might cost you a few hundred or a few thousand to replace a single worker. In my mind it makes sense to remind people that they get a raise every six months whether they deserve it or not — unless they get fired. If your raises are good enough, and you keep a few seasoned senior employees around with salaries to boast of, your attrition problem might go away (by attrition.)

Speaking of employee turnover.
My favorite Tunisian restaurant has a lot of turnover too.
They call these potato and egg turnovers Brik.
“May I have some mortar for my brik please?”

Final Note
Instead of having your employees get fired or quit causing high turnover.
Put them in a large sheet of dough and make a turnover out of them to set an example for your other workers!

Thinking of Yourself as a Global Commodity

Categories: Outsourcing Articles | Tagged , , | 1 Comment

Thinking of your work as a global commodity
 
Outsourcing is becoming the way of the world, and national boundaries mean less and less as workers and work cross these boundaries. Most of us work for a boss in our home country and are not aware that our skills are globally valuable commodities.  Perhaps you live in Shanghai and know how to make xiao-long-bao.  Did you know that those dumplings you make have a value in America and France? But, its more complicated than that.  Your income in New York making dumplings might be ten times what you could make in Shanghai.
 
If you work for yourself and have to market your services, you are more acutely aware of what different individuals will pay for your services and how much of your services they will use.  Very few self employed people deal with other countries or even cross language barriers within their own country.
 
I believe that the American Paranoia of outsourcing is based on the fact that we don’t understand our value. If a job can be taken away from us, perhaps we are not the best person to do that job in the first place.  And if we don’t “own” the job, then it is not taken from us, since we never owned it in the first place. Its the boss who owns the job, not the worker.
 
What Americans need to understand is that we in America also receive outsourcing jobs daily.  We just don’t hear about it so much on the news, so we are not aware of it.  America has vast expanses of arable land. Even with the global water crisis, our infrastructure keeps almost all areas hydrated with the exception of Deaf Smith County, TX which has gone dry.  Our ultra-modern farming techniques and cheap land allow us to have the best price for some of the best beef in the world.  America exports shiploads of beef to Japan and other countries every year.  America is number one in the world at weapon construction, and we export our means of destruction around the globe daily.
 
India is losing call center work to the Philippines because the Filipinos have better language skills.  India is losing IT work to China because the Chinese have better infrastructure, speed, and internet connectivity.  America is not the only losing jobs.  But, the jobs that left America, are leaving certain destination countries and going to other destination countries due to differences in worker capabilities and general costs.  The way to get and keep jobs is to be the most capable and efficient.
 
Americans need to know that if we are the most capable player in any industry, we will attract work. The key is to have assets and capabilities which can not be swiped by the competition.  Land and highly specialized skills are America’s ace in the hole.  But, not everybody in America has these skills.  I personally don’t feel that its fair that a laborer in America gets paid $70 per day while one in India might make 50 cents per day.  As the world becomes interconnected, we might find that the Americans with super-specialized skills get $200,000 per year, while unskilled laborers have their wages reduced to $20 per day.  If you slept through math class, you will soon find out what I’m talking about.
 
If unskilled labor is not outsourced, illegal immigrants can easily cross the border to do the work right here.  Currently, the INS makes it really difficult for people to cross over, but if those restrictions are loosened in the next few years, labor prices in the U.S. could go down to $4 per hour.  On the brighter side, with such competitive rates for labor, maybe other countries will outsource their manufacturing to us!  Additionally, many of the services we require might become a lot less expensive too!

It is not comfortable moving up the food chain

Categories: Management | Tagged , , , , | Leave a comment

My business is growing very slowly. I prefer it that way, so I can keep my frame of reference. I don’t like huge and sudden changes in any case. Life is full of surprises and unexpected turns. Growing a BPO outsourcing business also has issues that come up, and growing pains are a huge one.

When you go from being a worker to a manager, it is completely different. I actually like doing grunt work. It is easy. You just have to do a good job and get it done on time. Managing others is much harder. YOU are responsible when they screw up, and it is not always easy to deal with unpredictable people. My strategy is to try people out on outsourcing projects that don’t matter, that way you can get to know them without having consequences other than the money you spent having them do a fake project!

For many years I operated with the same sales lady, the same programmers, and everything remained the same for the most part. We grew a little, and developed our skills in many facets slowly over time — particularly my SEO skills which I started acquiring in 2008 which saved my life. But, now I am confronted with interviewing dozens of people. I have lots of phone calls with companies I wish to hire for outsourcing as well. I have to test out blog writers, programmers, and assistants as well. This really tires me out.

I remember a day when I had two interviews in my county. One was an hour from my house. After that I went to the other meeting which was twenty-five minutes from the first interview. I had a light dinner, and then went to have wine at a nice hotel not far from my house. I was exhausted. The actual time I spent interviewing was only 90 minutes total in the entire day. It completely drained me out. I began to think that I am not cut out for this higher level type of work. I prefer to do my tasks myself and not do much hiring and firing.

“Will I ever make it up the food chain?”
But, then I thought that if I am ever going to make it up the food chain to higher management, I need to be a pro at hiring and firing. On a more comforting thought, when I talk to others in business, I realize that they are not really any better than I am at hiring and firing even if their organization is much larger than mine. Hiring is a skill that requires mastery, and mastery takes a lot of hard work, thought and refinement. I’m having growing pains slowly moving up the food chain, but I think I’ll make it. I’m not sure how long it will take until I’m comfortable doing a higher percentage of management rather than grunt work. Maybe I will be a full fledged manager in a year. When you work for yourself there are no promotions. You do what is necessary for the company to run, so this promotion is one that evolves or doesn’t evolve. We’ll see what happens!

If you are having similar growing pains growing your outsourcing company, you are not alone. Learn to master the art of delegation to the point of it being a science!

You might also like:

Should you have slack in your schedule as a manager?
http://bpo.123outsource.net/2013/10/07/should-you-have-slack-in-your-schedule-as-a-manager/

6 ways to be more in control of your business
http://bpo.123outsource.net/2013/09/25/6-ways-to-be-more-in-control-of-your-business/

Your employees are depressed…

Categories: Management | Tagged , , | Leave a comment

Your Employees are Depressed: Why Business Isn’t Booming–And What You Can Do About It

Depression: A Major U.S. Export?
In the United States and elsewhere, many people are just tired of all the economic ups and downs—and just don’t believe in the system anymore. Mental health in the workplace is at an all-time low, and workers don’t feel secure about the future. Even those fortunate few workers who believe they have stable jobs and good bosses may suffer from work-related depression. Psychologist Robert Ostermann, an expert on workplace stress, pointed out that, at the outset of the 21st century, in countries that emulated “the American model” (Taiwan, Hong Kong, Singapore) there was more stress. As outsourcing continues to be a solution made-in-America, stress continues to escalate in call centers in India, IT companies in India and China, electronics manufacturing companies in Asia, the Philippines, and South America, and all across the globe.

After Sept 11, 2001, outsourcing to call centers in India, for example, increased dramatically as a way American corporations could pay out less and have callers on the phone at hours when U.S. call center workers were sleeping. Along the way, America also outsourced its customer service problems and its stress: Americans expected their calls to be handled by people who spoke good English, understood their accents and their concerns, and could offer clear solutions. When customer service issues were handled by call centers in India, the U.S. company that hired the call center was often criticized and held to higher standards by critical customers who then became suspicious of the company they believed they were doing business with in the first place. For most call centers in India, with the jobs and income came the stress of having a call center that was up to U.S. standards.

How Many Depressed Workers Are There?

According to surveys described in The Times of India (Feb 19, 2013), 66% of employees in India suffer from stress and admit they have trouble focusing at work because of stress. Whether it is caused by the very real demands of multi-tasking or by the unreasonable requirements of an unsympathetic and harsh work environment, lack of focus is a major symptom of depression. At call centers in India, where poor management and stress are legend, stress is extreme; yet in 2013, stress is part of every job, every industry, and every country. As of 2011, a quarter of the world’s workforce admitted to suffering from depression, and 92% assert that their depression is job-related http://www.huffingtonpost.com/2011/11/11/nearly-quarter-of-global-workforce-depressed_n_1088785.html .

According to a 2013 article in The International Journal of Environmental Research and Public Health, “Depression in the workplace is a global concern.” Michael Mazaar, author of Global Trends 2005, points out that “Depression is now…the world’s second most insidious illness” (after heart disease). Workers in call centers in India, the Philippines, and the U.S. are greatly at risk because customer service work on the phone is so stressful, but all types of jobs that involve multitasking and the potential for misunderstandings put workers at risk for depression. In the U.S. in 2001, job stress cost industry over $300 billion a year; what are the costs in 2013—if stress in the workplace has doubled or tripled? What are the current costs in the workplace–globally—because of stress due to outsourcing, national debt, mortgage interest rates, global warming, earthquakes and tsunamis, terrorism, global political meltdowns, and the threat of constant war? Human beings are aware of these issues, even if they do not consciously think about them or discuss them. These issues are real, and cannot be easily dispelled by talking about them…which may explain the current focus on medications: according to CNN, use of anti-depressant medications has gone up 400% since the late 1980’s.

Tip: If you think you are depressed: Spending time in nature (gardening, hiking, walking), exercise, and proper diet will bring you most of the benefits of the chemicals in medication. Also, studies demonstrate that just choosing to focus on the positive increases your serotonin levels.

Am I Depressed? Are Workers in my Office Depressed? How Can I Tell?

If you work in a call center or an office job in India, the U.S., or the Philippines, you may have noticed workers who are
· more and more forgetful
· often late
· prone to error and missed deadlines
· easily distracted
· exhausted
· confused
· withdrawn
· gaining or losing weight
· emotionless
· hostile
· preoccupied
· fond of alcohol

These are common symptoms of depression, a product of stress, and may be observable in your workplace. “Stress comes from bad managers,” says Robert Hogan, PhD, an expert on personality in the workplace. If you are a manager in a call center in India, the Philippines, the U.S.—or a manager in any office—you are in a position to help your employees and your company by finding out about employees suffering from depression.
According to Forbes, 65% of Americans surveyed said in 2012 that they would rather have a good boss than more money. Call centers in India are notorious for bad managers…but managers in the U.S. or anywhere else can be just as bad. A 2009 Harvard Business Review survey reported that “the majority of people say they trust a stranger more than they trust their boss.”

So What should I Do?

If You Are a Manager or a Boss:

1. Having healthy employees is good for business: According to an MIT study, depression costs “tens of billions of dollars” each year in terms of loss of productivity, time off from work, and health care or costs for treatment. Hire, train, and keep employees who are healthy and have a healthy way of relating to others—in person and on the phone.

2. Screen employee responses as you train workers. Give employees clear directions, realistic goals, rewards, and consequences. Talk in a pleasant and rational manner. Make employees feel safe. Let healthy employees mentor those who are on edge.

3. Observe employees at work. Don’t ignore any symptoms you observe. Be on the lookout for bullying or other behaviors that create stress. Ask questions and have employees see a company doctor if needed.

If You Are an Employee:

1. Manage yourself. Be aware of how you feel and how you react to others. If you are not happy at work, figure out why and make a plan to correct the situation.

2. Don’t just let the situation keep on the way it is. If you need more direction or different tasks and hours, speak up. Ask for help at the beginning, and follow directions.

3. Do your job. If you know the workplace environment is bad for you, find another job with a better work environment. If you can’t find another job, do everything to function better—including medication, if you need it.

Few workers feel the workplace is a friendly environment they can trust or feel comfortable in. Are workers at call centers in India and the Philippines taking the heat from U.S. business problems? According to Forbes, “The United States is a nation in decline” and the U.S. has slipped to 12th place in the list of the world’s happiest (read: most prosperous and stable) countries http://www.forbes.com/sites/christopherhelman/2013/01/09/the-worlds-happiest-and-saddest-countries-2/ .

Let’s face facts: terrible workplaces and poor job security are everywhere. In India and China, for example, only 40% of people surveyed in 2013 believe it is a good time to find a job. On the surface, these countries seem to be doing better than the U.S., but workers in India, China, and even the Philippines exhibit their own symptoms of depression. Labor issues, the high cost of food, worker safety, long hours, and poor wages are real: it’s not just about having a job, but the quality of the job and the work environment, too.

The Moral of the Story?

Despite the reports we hear of a boom elsewhere, there is no place where workers feel life is safe and the future is rosy enough to keep on working as usual. Whether you work in a call center in India or an office in the Philippines or the U.S., there is stress. In the workplace, do something good for others, and it will come back to you in increased productivity and focus.
Looking for the perfect country to do business with is like the old story of the house with the golden windows at sunset: a girl has always seen a house with golden windows. When she travels there one evening at sunset, the windows are not golden, and the boy of that house points out that the house with the golden windows is at the other side of the valley: he turns and points to her own house.

Perhaps the moral is still to look to your own house, your own country—instead of pointing at other countries’ productivity and bemoaning the fate or the lack of productivity of your own. We need not abandon outsourcing or doing business with those far-off countries that seem to have the golden windows, but we can try to strengthen our own nation. That means addressing problems that lead to stress and depression. It means not allowing our lives to be overtaken by the trivialities and frustrations brought about by a world that doesn’t seem to care anymore. Find the workplace that is the best for you, create a work environment that is positive, and reward the few people around you who care. Give good managers your best effort. But keep on looking.

Tweets:
(1) Americans are exporting depression as workers feel unsure about the future.
(2) Depression makes you forgetful, late, and distracted. Not good in the workplace!

You might also like:

If you were Donald Trump, what would you do?
http://bpo.123outsource.net/2013/09/24/if-you-were-donald-trump-what-would-you-do/

If you hire happy people to interact with your staff
http://bpo.123outsource.net/2013/05/29/if-you-hire-happy-people-to-interact-with-your-staff/

Which parts of the USA have better programming companies?

Categories: Software Development | Tagged , , , | Leave a comment

When we think of BPO outsourcing, we often think of offshoring, but you can also nearshore to other parts of the United States for example. Many California BPO companies hire in the Midwest or the East Coast for example. The question is, which parts of the country have the most reliable service providers?

What I learned through a lot of searching around and interviewing people is that California is the worst place to hire programmers. Interestingly enough, 17 years ago, I remember that my aunt told me that her husband’s friends with businesses never hired California companies to do anything because of the unreliable service. They always hired companies in the East Coast. I remembered her story long after the fact and found it to be generally true. I also learned that people who live in California who are FROM a reliable part of the world, tend to be more reliable.

In any case, the Midwest is a place where the level of integrity is much higher than the rest of the country or perhaps the rest of the world. We encountered personality issues with a few emotionally unstable service providers in the Midwest. We also found some people who were not that smart. But, we encountered far fewer liars and cheats in the Midwest than in other parts of the Country.

New Hampshire was another good place to find programmers. New Hampshire is a no nonsense state for rugged nature loving individualists. The folks there bring new meaning to the term, “Live free or die!”.

Massachusetts, my place of birth had mixed results. There were many highly intelligent software companies there, but many wanted to charge 200 hours for a project that experienced people typically bid 35-45 hours on. What does that tell you? Are they bidding high so that they can get rid of us? Very dishonest if you ask me.

No place in America is perfect, but New Hampshire and the Midwest are where I would refer a stranger to find good outsourced help in programming or perhaps other specialties as well. If it were me, I would strongly consider outsourcing to India. Good Indian teams can get your job done quickly and cost effectively. Good luck!

You might also like:

How to make sure the software company you hired will deliver
http://bpo.123outsource.net/2013/06/22/how-to-ensure-that-the-software-company-you-hired-will-deliver/

Slow-but-good verses fast & sloppy programmers
http://bpo.123outsource.net/2013/06/16/slow-but-good-verses-fast-sloppy-programmers/

Why would you hire you?

Categories: Hiring & Firing | Tagged , , | Leave a comment

Would you hire you? Why?

We have many companies begging us for jobs. But, we don’t dispatch jobs. At least we are not doing that yet. We might in the future since everyone in India is desperate for assignments. But, the people asking for jobs are not very refined sounding. They don’t even know how to properly ask for a job. They sound like they have no experience in business and no skills either.

If I sat these desperate guys down at a table and asked them, “Would you hire you?”, what do you think they would say? If they were honest, they would say “no”. The companies who are worth hiring typically do not advertise much, and are very picky about which clients they accept. So, if you are available, you are not good, and if you are good, you are not available. This is a very real paradox in outsourcing.

I am not trying to berate newer and less professional outsourcing outfits by any means. I just want them to take a look at themselves and assess their strong points and weak points.

Do you get work done correctly? Consistently?
Do you get work done on-time?
Do you correspond well with clients, and as often as they might like?
Do you read, write, and speak good English?
Is your staff reliable?
Can you handle higher level work?
Are you meticulous enough?

Nobody is perfect, but my goal is to get people to look at themselves and try to figure out what their best points are, and which points need attention. Remember, you must pay more attention to your weak points than your strong points, otherwise you will be an unbalanced mess — and unbalanced messes don’t do well in the cut throat world of business!

Tweets:
(1) If you worked in HR, would you hire someone like you? If not: what can you fix in yourself?

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Don’t hire an employee, hire 5 and keep the best one!
http://bpo.123outsource.net/2013/10/20/dont-hire-an-employee-hire-5-and-keep-the-best-one/

The 2nd interview, why is it so important?
http://bpo.123outsource.net/2013/09/02/the-2nd-interview-why-is-it-so-important/