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Let’s go get them American SMEs baby!
By Ankur Sharma | April 14, 2008
SMEs (Small and Medium Enterprises and NOT Subject Matter Experts) really seem to be the flavor of the season (or rather the year). Last night I just turned on the TV and NDTV was talking about it. And so is everyone else whose fancy it has caught.
I read an article in ToI today that I wanted to share in this post.
Even though it has been declared that the US economy is in recession (by none other than Ben “Fed” Berkanke himself), there has been a lot of concern about the impact of it outsourcing. However, Indians fears can be allayed with some good news. SMEs that are increasingly looking to widen profit margins by curbing costs are now making the best of it. According to the article, there is a huge opportunity to tap the SME outsourcing market looking at different options – customer service, telemarketing, R&D outsourcing, HR outsourcing, backoffice, legal – you name it. According to Adam Larkey at Wolet Capital Corporation, “This will substantially offset or minimize the impact of the US recession on Indian industry.”
Truly said, the outsourcing opportunity from the SME segment IS very promising (look at the table below)
By march 2010, SME outsourcing will form almost 20% of the $55 Billion dollar industry – a fact not surprising considering how many SMEs are actually present in US. Approximately 80% of US industry is constituted by SMEs in terms of volume. Here are some numbers:
• 20000 SMEs in the bracket of $2-$500 million
• 6000 companies in $500 million to $2Billion
• 3000 in $2 Billion to $5 Billion
• 2000 of $5 Billion
• 1400 in the $5 Billion to $10 Billion
Seeing these numbers, it is of no surprise that there is immense opportunity especially from SMEs. So how should we interpret it?
I see a lot of business coing up for our key clients – the SME call centers who will be able to grab a large share of this pie. Since this segment will be primarily cost conscious, it is imperative that the SME call centers make the most of this opportunity, as the big brethren – the large call centers, won’t be able to compete on the cost aspect.
Having said that, it is also imperative that they have the right communications technology as the key enabler in place, so that they can deliver on the quality that US organizations expect. Such call centers need to have a technology that is easy to own, operate and maintain, so that time and resources can be devoted to the operations and management perspectives. Choose a technology that fits your processes, not vice versa. Moreover, it is a better option to go for a single vendor for all your needs once you have outlined them. The more the vendors, the harder it becomes to manage them together. Also, let’s not forget the time and man-hours spent in trying to manage disparate technologies that are loosely integrated, and the blame game the vendors resort to. Lastly, compromise on the price if you have to, but never on the technology! The reason is simple – you will achieve quicker RoI and become profitable. A cheap and inferior (or unflexible) technology will make you pay through your nose in the long run.
I am sure most call center folks out there know this. However, some make the same mistakes and end up losing their peace of mind over technology. To make the best of an opportunity, (like the SME one we outlined in the first part of the post), one has to get all the homework done to be able to get the most out of it. Once you have everything in place – including people, processes and technology – you are in a much better position to outpace others in the rat race.
Topics: Call Centers, Industry News, SMEs, Technology |