Marketing Convergence

I came across and interesting poll from SLI Systems noting what industry insiders think of the effectiveness of different kinds of online marketing (e-mail, SEO/SEM, Podcasts, etc.). It seems clear to me that as all online media innovates on new channels to drive people to to sign up for a product or go to a website there is a necesity to augment this with a direct or virtual human touch point.

Companies invest millions and millions of dollars just to develop an eCommerce marketing budget. If these companies invested money in some of the traditional marketing options, tradeshows and telemarketing this budget's effectiveness would extend expotentially. Taking this further, five years ago people were looking at innovative marketing to support their traditional marketing activities such as Direct Mail. Now companies are retiring forms of traditional marketing, using an electronically driven marketing strategy and filling in the holes with more expensive labor intensive marketing (although there are cost-effective options).

Obama Stimulus Plan = Global Stimulus?

Most talk about the US stimulus plan has been focused on how it will help the American consumer, business and economy in general. Take this article from the International Herald Tribune.

http://www.iht.com/articles/2009/01/12/americas/cong.php

Not much news has been focused on how these effects could benefit the global economy in general. Not just export driven manufacturing outside of the US. But also BPO (Business Process Outsourcing organizations).

b-p-o.org

If US consumers increase their spending (or do not spend less), BPO companies will continue to see huge growth just from the Moore's law, the continuing saturation of BPO to smaller and smaller companies as well as the stimulus effect on Western Global Economies.

This could help large and small call centers alike. As consumers spend more large US corporations will not have to shrink operations and small and mediums sized US business will have a smaller default rate. This could help small BPO providers such as this call center.

Bacolod BPO Growth

Another sign that the Philippines will experience growth despite the gloomy world economic situation.

Bacolod BPO Growth

Charity Telemarketing

Interesting article in the New York Times.

http://www.nytimes.com/2008/12/31/nyregion/31charities.html?ref=nyregion

The question that never gets properly answered in these articles is what is the alternative. Every cause needs some form of marketing. Also, with current economic conditions in the US isn't domestic investment in private sector activity spurring growth and consumption. The tax deductible aspect of charitable donations would seem to fuel consumption even more. But I guess this neglects the main point that if you donate to a charitable cause you expect most of your money to go to the people that the charity is supposed to benefit from.

2009 BPO Consolidation

Two trends that have been mentioned on this blog before is the trend of Indian BPO providers moving more of their operations to the Philippines and increased consolidation of BPO providers. With the recent economic conditions it will be interesting to see how these two events play out.

I suspect that the short term appreciation of the US dollar will drive increased outsoucing in general but because real wages have flatlined in India that the flow of operations to the Philippines will also slow.

The announcement of the following all stock merger of Health Axis and BPO Management services is the first of many that will happen in 2009.
http://www.bizjournals.com/losangeles/stories/2008/12/29/daily18.html

Sourcing Projects Across Destinations

Interesting release from Odesk .

This release states that the Philippines is getting better than average feedback scores for small outsourcing projects and is second behind India in total outsourcing providers. The interesting to note is the average hourly price for Filipino vendors. They are by far the most cost effective solution. Some of this has to do with the type of work being offered but their are obvious cost and quality synergies for sourcing there.

The following is a link to some Philippine Telemarketing Companies.

KPO Firms Not Immune to Downturn

This taken form a press release from Innodata Isogen.

Seems like not even KPO firms are immune from the the economic downturn. This KPO and ITS company with offices in several countries is laying off 260 employees for cost cutting reasons. While this is the exception to the rule in this industry and paltry when compared to the amount of employees being cut at large US financial services compaines it still illuminates that during dark times there sometimes is no industry that is immune.

For information on outsourcing opportunities you can visit this site.

Mortgage Mods Re-Default Rate

Taken from the Department of Treasury - http://www.occ.treas.gov/ftp/release/2008-150a.pdf

This document state mortgage re-default rate is 55% in the first 90 days. This is a serious issue for the Fed and Treasury to consider when making policy decisions.

A place to learn about ways to be in contact with Mortgage Specialists:

http://qualitymortgageleads.net

BPO: Back to Basics

In recent years just like the world economy in general, outsourcing prognosticators have been declaring new and bold frontiers of process management enabling organizations to cut costs further along the supply chain and allowing better focus on core revenue generation activities. This trend maybe reversing. Along with deleveraging many companies want the most risk averse way to cut costs. For outsourcing in general this means simple call center processes . Back end will be the new trend for small and large organizations alike.

It will be interesting to see how venture capital entities focused on emerging market BPO/KPOs will react and how money will follow. Also, in 2008 there was wide agreement that BPO industry consolidation would continue. How the current economic crisis will impact these negotiations in terms of financing and changing strategic imperitives will change.

Maybe the only thing in the near future that will be sure to increase is the amount of uncertainty.

Philippine Currency Outlook Looks Good For US Companies

With growing concerns of dollar depreciation against large currencies it is interesting to see that there may be at least one destination where the dollar will continue to preserve its value.

For US companies looking offshore having to deal with the high turnover rates in India as well as increasing wages and costs, the Philippines is looking like an ever more enticing long term destination. Many companies are moving away from India for front end outsourcing services due to cost and service issues. Below is a good directory for locating these services:

http://b-p-o.org/

2009 Possibilities

With cost cutting being a popular subject these days this article makes some interesting points on potential drivers for Outsourcing in 2009. Alsbridge, A Dallas based consulting firm, thinks that FX rates, risk aversion and increased cost cutting activities will lead to increased outsourcing in 2009.


While this article is mainly targeted at medium to large enterprises the same guiding principles influence smaller enterprises. A great Dallas based Business Process Outsourcing company for small and medium enterprises is Hit Rate Solutions .