Posted on Jun 26th, 2008
Posted By TGSI
There was a time when it was often ignored, assuming that it was just the paranoia of some hyperactive doomsday aficionados. However with crude oil prices touching $139 a barrel and anticipated to climb even further, the time has come for economies and businesses worldwide to face reality and come to terms with changing trends. Doomsday may still be far away, but if you feel that your business is getting affected due to the recent spurt in oil prices, it would be better if you start thinking seriously about available options such as business process outsourcing. The immediate affect of oil price instability is a dramatic increase in operating costs and since offshore outsourcing is a proven method for reducing operational costs, it is presently the most effective prescription that you can use for your business.
It is true that oil price hikes are having an adverse affect on the economies of developing countries that do most of the outsourced work. However, that is quite irrelevant because the basic nature of outsourcing services is such that they remain fairly protected from the onslaught of inflationary trends. The main cost elements are Information Technology, Telecommunication systems and professional skills that are relatively less affected by rising oil prices. Even with rising oil prices, most business outsourcing service providers are still delivering cost savings of around 40% to 45%, something that provides hard evidence to the effectiveness of outsourcing services.
As opposed to what some economists would like to believe, the reality is that the recent oil price hike is just a passing phase and is not sustainable. As demand decreases due to high prices, it is only logical that oil prices will come down eventually. However, since your business may have to survive to see that day, it would be better if you start taking proactive steps to secure your business interests. Hiring business process outsourcing can help and you should not let go of the opportunity.