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The Southeast and Its Position in the Outsourcing Industry

By Infinit Outsourcing Subscribe to RSS | August 16th 2012 | Views:

A talent pool is quite similar to a vehicular tire that as you use it more frequently, it will soon be thin and would have to be replaced. With a talent pool, the increasing demand for outsourced services have caused off-shore service providers to experience a challenge because the amount of people who are skilled for a particular task no longer matches the demand for such. Outsourcing companies who wish to continue supply their clients with efficient, skilled employees should now begin to take measures to address the impending issue of talent pool depletion.

According to an article from outsourcing newsletter The Sauce entitled “Talent pool a challenge in Southeast Asia BPO”, business process outsourcing companies are now starting to experience challenges in hiring and retaining capable employees. Such situation causes human resource departments in outsourcing solutions providers to double their efforts to meet the demands of their clients, also the attrition rate increases. There is not just one reason that drives employees to file a resignation because in fact, there are quite different reasons that could be attributed to the said problem. However, despite the thinning of the talent pool in Southeast Asia, it has been mentioned by Tholons, Inc., a global consultancy firm, outsourcing destinations in the region are expected to further develop specializations in specific areas, including information technology outsourcing. Information Technology has been eyeing the Southeast Asian region as there has been an increase in IT-related outsourcing tasks that are being delegated to the said region.

Another sector that has been eyeing the Southeast Asian region is the financial sector. According to the article from the same outsourcing newsletter, The Sauce, entitled “Banks could send 1,000 jobs offshore” that Australian banks and accounting firms are considering outsourcing some of their operational and back office processes to cut labor costs. Australia and New Zealand Banking Group (ASX:ANZ), Westpac Banking Corp (ASX:WBC) and Ernst & Young’s Australian office have all made an announcement that they will be conducting job cuts. It is likely that other financial institutions in the Australian region would follow suit, especially when they witness that outsourcing their back office and other operational tasks would be more beneficial for their company because delegating a set of tasks to a solutions provider will enable them to focus more on their company’s core processes.

The Southeast Asian countries, including the Philippines, is a region that could very well support the Australian time zone as there are only a couple of hours difference, which makes it more appealing for Australian companies to prefer outsourcing in the said region. As time is an important factor in all businesses, this is one of the leverage that Southeast Asian outsourcing solutions providers have. This allows Australian companies to still monitor the activities of their offshore team at a time that is convenient to them.

It seems that the benefits of outsourcing have already been widely recognized by companies across the globe. Although the United States and the United Kingdom are still the top markets for outsourcing, there are still other regions that are willing to engage in outsourcing.

Infinit Outsourcing - About Author:

Jamee C is a Strategic Solutions Specialist of Infinit Outsourcing, a leading provider of outsourcing services to small and medium enterprises. It offers boutique outsourcing solutions that allow companies to gain a competitive advantage in their respective industries.

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