ASSIGNMENT 6 (HRM)

What do you think will the 21st -century corporations look like? (1000words)

The 21st Century Corporations

What does the 21st century learning look like?

‘Globalisation and technological change are placing greater demands on education and skill development in Australia and the nature of jobs available to young Australians is changing faster than ever. Skilled jobs now dominate jobs growth and people with university or vocational education and training qualifications fare much better in the employment market than early school leavers.’

A new environment of schooling has been emerging over the last decade of the 20th century and it has been accelerating in the 21st century, stimulated by a new economy, new technologies and new understanding about learning. In today’s interconnected, technology driven world, learning typically takes place in physical, virtual and remote places. It’s now more important than ever that learning environments make the paradigm shift towards 21st century education.

Using technology alone may lead to high-tech lectures or technically proficient students, but that falls short of what 21st century learning is all about. This seminar will identify what are the key factors that make 21st century learning one that engages and motivates the learner and educator.

How should education be shaped to meet the needs a 21st century learning models? What do educators need to do to be prepared for 21st century teaching? What are the common issues and visions?

This seminar will feature leading technology companies showcasing their vision of 21st century learning environments and how they are being adapted into the education system across all sectors.

resources: http://www.educationau.edu.au/jahia/Jahia/pid/819

What Does a 21st Century L&D Department Look Like?

A month ago, on April 21, Jay Cross at learntrends co-ordinated a round-the-globe series of online conversations on how learning can impact performance in organisations. Starting on the US West Coast and ending somewhere east of New Zealand, these virtual conversations opened up a whole Pandora’s Box of issues around the challenges and opportunities that learning & development faces if it is to really have an impact of organisational effectiveness.

Jay’s reflections on the event are worth reading.

NEW ROLES FOR LEARNING PROFESSIONALS

Ellen Wagner, Curt Bonk and I spent our 30 minutes facilitating a discussion on the topic of ‘New Roles for Learning Professionals’. Going back through my notes and the archive of the (very animated) chat/discussion that took place, some clear threads emerged on the types of capabilities that a 21st century L&D department need to have.

Here are some of the core capabilities identified:

1. consulting / coaching acumen (as well as learning acumen) that is focused on performance problems and outcomes. The ability to engage with senior (and not-so-senior) line managers to identify the root cause of performance problems, and not simply focus on learning.

2. the ability to ‘speak business’. An understanding of business goals is the ‘so what’ in learning. Everyone in L&D should be able to read and draw conclusions from a balance sheet and P&L account and understand the business drivers that line managers are focused on.

3. a good grasp of technology – across-the-board - but especially emerging technologies, and how they can fit into learning solutions

4. adult learning – an understanding of how adults learn in the workplace, and ‘what works’ in organisational learning.

Along with these, another set of attributes such as: ‘empathy, ’ listening’, ‘tolerance for ambiguity’, ‘basic communication ability’ were identified as essential by participants.

Harold Jarache also made the important point that ‘attitude trumps skills’ for a learning professional. We’ve known that in a more general sense for years – many of us have used the axiom ‘hire for attitude’ when we’re recruiting. I certainly have found it has served me well. I can’t think of any situation where I’ve hired on the basis of attitude where I would have done otherwise in retrospect.

INNOVATION – THE OXYGEN OF L&D

One one other vital high-level capability every L&D practitioner needs to have in spades is the ability and, even more importantly the desire, to innovate. Innovation in designing new approaches and solutions to solve performance problems is the oxygen for L&D. It’s not vitally important whether the innovation involves technology or not – although technology does offer some huge opportunities for solving business problems and we’re just plain stupid if we ignore them – but an L&D department that fails to demonstrate that it continues to be innovative is one that’s quickly becoming irrelevant as a strategic business tool. Such L&D departments deserve to have their funding redirected elsewhere.

resources: http://charles-jennings.blogspot.com/2009/05/what-does-21st-century-l-department.html

Can the 21st century corporation remain secure

Introduction

Texas at risk tomorrow?

21st century companies have no choice but to use technology to connect to the outside world - to communicate with customers, suppliers, partners, and their own employees. Unfortunately with that interconnection comes a range of new security issues.

Briefing reporters in Japan at the end of last year, Donald Rumsfeld referred specifically to the growing threat of "cyber attacks" 13 . These - best defined as viruses and hacking-attacks - are now causing high levels of concern amongst business leaders, with 60 per cent worried that they are at risk 14 .

Experts agree that, at the moment, most cyber-crime results from the intellectual motives of "super-kid" hackers, and very little relates to commercial crime or terrorism 15 . But it is expected that could change.

Terrorist technological capability is widely assumed by intelligence experts and the scope for terrorist abuse is increasingly recognised.

Could it happen in Texas? The government, at least, seems to think so. Last year, the Texas Department of Information Resources successfully carried out one of the first state-wide cyber attack simulations, in preparation for the possibility that terrorists could sabotage critical government computer systems 16 .

It's a threat which businesses need to take increasingly seriously too. For example, most oil and gas companies use process control software which, as many of you know, controls safety valves and with which a hacker could wreak havoc.

From a business perspective, the indirect risks are perhaps of just as great importance: loss of customers, and damage to the corporate brand and reputation if such an attack becomes public news.

Texas-targeted risk solutions

But enough of the threats. What can Texas do to manage its risks better?

The good news is that awareness amongst companies both around the world and here in Texas has improved significantly since 9/11. But there is much that remains to be done.

Contingency planning

First, let me start with contingency planning. Any underwriter will tell you that preparedness is key. Yet you may be surprised to know that many businesses actually aren't ready to face disaster when it strikes.

In one recent survey, almost 40 per cent of Western companies admitted that they do not have adequate plans in place to protect against terrorist attacks 17 .

The same is true of cyber-risk. A third of organisations admit that they cannot tell whether their systems are under attack, and believe that their ability to respond to incidents is inadequate 18 .

Some think that contingency planning is too expensive, but in fact the most important steps for surviving a crisis often cost little. Being unprepared can be the most expensive strategy of all. Careful thought and enough time are the important factors. But it is clear that companies must invest more - as much in terms of time as money - in contingency planning, to better prepare themselves against the broadest spectrum of risks which we all fear.

Improved security

Improved security is another step which companies can take relatively easily, but which can make all the difference, according to the experts in our market.

One of the first acts of US Congress back in 1790 was to launch ten cutters to patrol the eastern seaboard and guard major ports from illegal trade and smuggling: this was the foundation of the United States Coast Guard 19 . Moving forward 200 years, that challenge has changed.

In December last year, the Department of Homeland security announced that almost 32 million dollars would go towards improving defences along the Texan coast - with the Port of Houston Authority receiving the largest grant 20 .It's all part of a co-ordinated strategy which, to insurers, seems like a very sound strategy.

But there is no room for complacency. Further investment, even closer co-operation between government departments here as well as internationally, and plugging any gaps in federal law, are all vital.

All business leaders have a role to play too. Many companies have improved their security measures since 9/11, but there is little consistency and standards vary greatly. So where are the weak links? Our underwriters talk about perimeter control, checking of ID, close circuit TV monitoring, and a greater presence of security personnel as the main examples.

In order to improve security, companies will need to allocate funding, educate employees, and work better together with their industry peers to share information and develop solutions across their own corporate boundaries.

Sometimes people fear that additional security just leads to more red tape. But only 16 per cent of global companies feel that security measures introduced since 9/11 have had a negative impact on their business. Even better, over half believe that they have actually helped them to deliver their business goals 21 . It's an investment, and a change of culture, that's clearly worth making.

Greater consideration of insurance

Third, Texas businesses should consider insurance very carefully. The insurance markets learnt the hard way, following the Twin Towers disaster, that terrorism is a risk which needs to be separately priced - and priced at a level commensurate with the risk.

However, many companies are currently not buying coverage. Maybe they feel removed from the risk. Maybe they feel unable to bear the cost, or have still not got used to the idea of having to pay for it 22 .

A new survey by Marsh, a leading insurance broker who works closely with the Lloyd's market, shows that 46 per cent of US companies are buying terrorism cover 23 . The good news is that's nearly double the number buying it this time last year, but the bad news is that over half of corporations remain uninsured - and smaller companies in particular are much less likely to have insurance in place.

Amazingly, and this has particular resonance for Houston, energy companies are the least likely to buy terrorism insurance. Only 18 per cent of energy companies surveyed said they had coverage in place - compared to around 70 per cent of public entities and real estate companies.

The range of risks which terrorism brings is also expanding. Take 9/11, where some 25 per cent of the total 40 billion dollar loss related to business interruption 24 . In today's business environment, the impact of a business temporarily ceasing operation in one location can often be felt right across the world. And in a society where litigation is such a preoccupation, some companies are increasingly concerned about the liabilities they could face in the event of a terrorist attack, and we are seeing emergence of a new terrorism liability market to cover these risks. The hotel industry protecting its guests is one example, but pollution liability following terrorism is another - and so it is as relevant an issue for oil installations as for hotels. Of course, developing innovative solutions for new, complex and difficult risks has always been an area where the Lloyd's market excels, and Lloyd's is a leader in these fields.

Closer attention to risk management by the board

Finally, however, insurance is only part of the solution. In the end, closer attention to risk management is critical. Companies need to recognise that the risk environment has changed, and they cannot rely on 20th century management techniques to solve 21st century problems.

The whole area of cyber risk is one where the insurance market can and does offer solutions, but any insurer will look very closely at the risk management procedures in place before offering coverage. As one Lloyd's expert involved in this field puts it, if best practice is in place it mitigates the risk in 90 per cent of cases 25 .

Whether it's a question of more insurance; or using risk experts to help your business manage security, today's risks no longer fit into easy categories, and in the wake of Sarbanes-Oxley, responsibility for decision making on corporate risk lies in the boardroom.

We seem slow to learn the lesson. Although attitudes towards risk management are changing, it appears that much of the impetus for change is coming from regulatory pressures - rather than being a commercial motivation to manage risk better 26 . A culture of risk awareness has yet to emerge in the boardroom it seems - in only 31 per cent of corporations do all major decisions involve interaction with the risk management team.

resources:http://www.lloyds.com/News_Centre/Speeches/Can_the_21st_century_corporation_remain_secure_Lord_Levene_Chairman.htm

Conclusion:

My conclusion about this 21'st century look like is just this is the beginning of extreme high-tech, fast emerging technologies and we can't stop it because everything in this world is changing. Because of this i think there are only two faces that the 21st century corporations experiencing first is the advantages of this wonderful new discoveries of technologies and the second is the abusing of this technology and use this technologies to their own benefits like being selfish,terrorist(hacking) and thats very dangerous.

ASSIGNMENT 5 (HRM)

Visit and identify a company website that has undergone HR downsizing. Identify the cause of downsizing and describe its processes.

So first let's just give some meaning to those words that I am not familiar.(hehehe)

WHAT IS DOWNSIZING?

MEANING:

Downsizing is the ‘conscious use of permanent personnel reductions in an attempt to improve efficiency and/or effectiveness’ (Budros 1999, p. 70). Since the 1980s, downsizing has gained strategic legitimacy. Indeed, recent research on downsizing in the US (Baumol et al. 2003, see also the American Management Association annual surveys since 1990), UK (Sahdev et al. 1999; Chorely 2002; Mason 2002; Rogers 2002), and Japan (Mroczkowski and Hanaoka 1997; Ahmakjian and Robinson 2001) suggests that downsizing is being regarded by management as one of the preferred routes to turning around declining organisations, cutting cost and improving organisational performance (Mellahi and Wilkinson 2004 )most often as a cost-cutting measure.

resources: http://en.wikipedia.org/wiki/Layoff

Overview: This overview focuses both on downsizing in the narrow sense (workforce reduction) and on related, generally broader or more fundamental strategies such as rightsizing and rethinking. The document defines key terms, discusses why downsizing is important, highlights implementation approaches, tools, and results and lessons, and suggests next generation issues. It includes a selected, annotated bibliography; examples of experts and resources in downsizing; and illustrative examples of the various approaches (e.g, downsizing, rightsizing, rethinking). Because most lessons of experience suggest that workforce reductions are rarely effective undertaken in isolation (i.e., downsizing for the sake of downsizing is increasingly regarded as a highly ineffective strategy), the overview attempts to weave together themes pertinent to downsizing, to rightsizing, and to some extent to rethinking.

resources: http://jobfunctions.bnet.com/abstract.aspx?docid=60772&tag=content;col1

WHY DO FIRM DOWNSIZE?

*Reduce Costs
*Reduce layers of management to increase decision making speed and get closer to the customer.
*Sharpen focuses on more competencies of the firm and outsource peripheral activities.
*Generate positive reactions from shareholders in order to improve valuation of stock price.
*Increase Productivity.

Effects to downsize: Overall

*Mixed effects on firms performance; some cause short savings, but long term profitability and valuation not strongly affected.
*Firm's reputation as good employers suffers.
Ex. Apple computer reputation as good employer declined after several layoffs in 1990's.
*Downsizing rethinking of employment strategy. Lifelong policies not credible after downsizing.
Ex. IBM abandoned lifelo9ng policy after several layoffs in early 1990's.

Effects to downsize: Employees Morale

*Employee motivation disrupted: increase in political behaviors,anger, fear - which is likely to negatively impact quality of customer service.
*Violation of psychological contract,leads to cynicism, lowered work commitment, fewer random acts of good will.
*survivors experience more stress due to longer work hours with the re-deisgn jobs, and increased uncertainely regarding future downsizing.

Effects to downsize: Workforce Quality

*Many senior employees leave due to application of early retirement incentives: result is loss of institutional memory.
*The use of the voluntary workforce reductions (buyouts) results in the most marketable employees leaving (stars)-- difficult to control since all the employees must be legally eligible to qualify.
*Early retirements & voluntary reduction often result in too many people quitting and some are hired back as consultants at higher cost to firm.

Downsizing Effects

Downsizing works best when:

*Changes in strategy,Organization structure and culture accompany job cuts of downsizing.
*Weak business units and plant closures are used as basis of reductions, rather than across the board cuts affecting all the units (including healthy one).

Downsizing

Critical Thinking Questions:

1. Which is better criteria to use as the basis for downsizing employees: seniority or performance?

- for me, it is the performance. Because dealing with a company is not a joke business it is very real and there are lots sacrifices of what you have. In order to run a company it should deal with the "performance."

2. Should employers give future notice to downsized employees, or to tell them on the they they are expected to leave the firm ?

- o,yes!It should be so that the employee can get ready to search for another jobs.

3.Separation pay is voluntary. What benefits do firms gets when they give separation pay to employees in downsizing?

- ***

4. Is there a set of best practices to let an employee know he/she been downsized?

- If there, well i think it's a challenge to him/her to work better.

5. Under what circumstances might company's managers prefer to use layoffs instead of early retirements or voluntary severance plans as the way to downsized the workforce?

- ***

resources: http://www.authorstream.com/presentation/edwinlee-111819-downsizing-hr-business-finance-ppt-powerpoint/

Example of company undergone hr downsizing:

History Progress

1890s–1937-Early Ambitions

A merger of three 19th-century companies—the Tabulating Machine Company, the International Time Recording Company and the Computing Scale Company of America—creates the Computing-Tabulating-Recording Company (CTR) on June 16, 1911. CTR is the precursor to IBM. Thomas J. Watson Sr. joins CTR in 1914 and over the next two decades transforms it into a growing leader of innovation and technology and a prototype for the newly emergent multinational corporation. This shift is signaled in 1924, when the company’s name changes to International Business Machines Corporation (IBM). From the beginning, IBM defines itself not by strategies or products—which range from commercial scales to punch card tabulators—but by forward-thinking culture and management practices grounded in core values. By adhering to its vision and values throughout the Depression—providing continued employment, even adding engineers and other staff in order to sustain its production output—IBM is able to play a pivotal role in enabling the U.S. government’s Social Security Act of 1935, “the biggest accounting operation of all time.”

1938–1951-Growing Influence

Although international commerce is brought to a halt by the Second World War, IBM expands its manufacturing capacity to meet wartime demands—adding to its Endicott, New York plant, and opening new facilities in Poughkeepsie, New York, Washington, D.C., and San Jose, California. Following the war, the company accelerates its international growth, and in 1949, it forms the World Trade Corporation to manage its foreign operations. In the span of two decades, the new organization will generate more than half of IBM’s bottom line. Business innovation works hand in hand with social innovation during this period, as IBM promotes diversity and corporate philanthropy in its policies. The company begins to focus on opportunities for women, minorities and the disabled—years before such considerations would become the norm.

1952–1963-Foundations of Modern Computing

The ascension of Thomas J. Watson Jr. to IBM’s presidency in 1952 marks the beginning of the company’s transition to a modern corporation. During the first decade of his tenure, Watson Jr.—later labeled by Fortune as the “most successful capitalist who ever lived”—begins to transform IBM from a leading industry player into a business behemoth that spans the globe. He refocuses IBM toward the development and commercialization of electronic computer technologies, creates and institutionalizes professional corporate management practices, and codifies unwritten IBM philosophy and behaviors into formal policies and programs. These technological, business and social innovations propel IBM into the 1960s as the world’s leading high-technology firm.

1964–1970-The 360 Revolution

In the early 1960s, IBM sees its marketplace lead threatened by a series of worthy challengers. In a bold business move—Thomas J. Watson Jr.’s legendary “bet the company” decision—IBM develops the revolutionary System/360™ family of mainframe computers. Sparked in part by the triumph of the System/360, IBM experiences a nearly fivefold increase in revenues and earnings over the course of the decade. The organization wears its mantle of success well, adopting a host of progressive new employee and social programs that make it one of the world’s most admired companies. If IBM ended the 1950s as a technology leader, it ends the 1960s as a global business icon.

1971–1992-Computing Gets Personal

Building on its success in the 1960s, IBM solidifies its position as the IT industry’s—and the business world’s—most profitable, admired and iconic corporation, and continues to develop innovative new products throughout the 1970s. From the magnetic-stripe technology used on credit cards, to floppy disks, to the Consumer Transaction Facility (an early form of today’s ATM), IBM’s ingenuity is felt everywhere. As a new era of computing begins to take hold in the 1980s, the company creates standards that legitimize the PC, turning it from a hobbyist device into an indispensable tool of modern life—in homes, businesses and schools around the world. The company also continues to push the boundaries of scientific discovery, with five IBM researchers sharing three Nobel Prizes in Physics. However, despite its depth and breadth of innovation, by the late 1980s IBM finds itself thrown into turmoil by the very revolutions it helped launch—initiating a downturn and period of unrest for the company that will persist into the following decade.

1993–2002-The Birth of e-business

Entering the 1990s, IBM confronts its most significant strategic challenges since the Depression and successfully undertakes one of the great turnarounds in business history. It moves into major new growth businesses, principally services and software, and embraces open standards for computing. The company also fundamentally reshapes its culture to refocus on clients and to be more agile, responsive and collaborative. This transformation coincides with the advent of the Internet, and IBM is a pioneer in helping clients capitalize on the new possibilities of global networked computing and business—what it dubs “e-business.” As the 20th century comes to a close, IBM stands, once again, at the forefront of global technology and business.

resources: http://www-03.ibm.com/ibm/history/interactive/index.html

ASSIGNMENT 9

Identify an information environment of your choice and write an essay to address the following questions: (3000 words)

• What should be your role within this environment?

For me my role with this issue is because I am an IT student well i just use this to spreed out this news in the net even this is very known in the internet.

• How can the principles of information organization and representation help you in performing this role?

As for this joining some forums in the net that they can give us new knowledge to solve this kind of problem.

• What are the challenges facing you in performing the role? How will you address these challenges?

Well, enable to pursue this kind of role one of the challenges is the soul of pursuing this role. I know this is a hard to meet but reading in formations like this is actually is a quiet interesting for me, and even in the my daily doings i contributed this news to persons who don't know the roots of this problems like the issue of stopping of using fossil fuel to minimize the global warming. Well, I'm proud to say that i did this i remember when i tell some of my cousins about of this issue i they know about this so that what i really want to do to read some new articles and to spreed out this news to the people so that if we are able to do this all in the world i think and probably we can see some solutions to this problem starting at our self.

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ISSUE: World Leaders Agree to End Fossil-Fuel Subsidies to Slow Global Warming

At the Group of 20 (G20) meeting in Pittsburgh last week, the world's largest economies agreed to end subsidies for oil, coal and other fossil fuels that produce greenhouse gases and contribute to global warming, but failed to move ahead on offering financial aid to developing countries that are already feeling the effects of climate change.

The $300 billion spent every year on subsidies worldwide actually accelerates global warming by keeping prices artificially low and increasing demand for fossil fuels. Phasing out the subsidies between now and 2020, as the G20 nations intend, would decrease global greenhouse gas emissions 10 percent by 2050.

By punting temporarily on providing "climate change" money to poor countries, the G20 leaders renewed concerns that they may lack the commitment to achieve a meaningful international pact to slow global warming when they meet with other nations at the United Nations Copenhagen climate conference in December. Yet, in a joint statement, the G20 leaders pledged to increase their efforts to reach an agreement this year. They also asked their finance ministers to develop a variety of climate-related financial aid strategies for them to consider at their next meeting.

What Causes the Greenhouse Effect?

Life on earth depends on energy from the sun. About 30 percent of the sunlight that beams toward Earth is deflected by the outer atmosphere and scattered back into space. The rest reaches the planet’s surface and is reflected upward again as a type of slow-moving energy called infrared radiation.

As it rises, infrared radiation is absorbed by “greenhouse gases” such as water vapor, carbon dioxide, ozone and methane, which slows its escape from the atmosphere.

Although greenhouse gases make up only about 1 percent of the Earth’s atmosphere, they regulate our climate by trapping heat and holding it in a kind of warm-air blanket that surrounds the planet.

This phenomenon is what scientists call the "greenhouse effect." Without it, scientists estimate that the average temperature on Earth would be colder by approximately 30 degrees Celsius (54 degrees Fahrenheit), far too cold to sustain our current ecosystem.

How Do Humans Contribute to the Greenhouse Effect?
While the greenhouse effect is an essential environmental prerequisite for life on Earth, there really can be too much of a good thing.

The problems begin when human activities distort and accelerate the natural process by creating more greenhouse gases in the atmosphere than are necessary to warm the planet to an ideal temperature.

* Burning natural gas, coal and oil —including gasoline for automobile engines—raises the level of carbon dioxide in the atmosphere.

* Some farming practices and land-use changes increase the levels of methane and nitrous oxide.

* Many factories produce long-lasting industrial gases that do not occur naturally, yet contribute significantly to the enhanced greenhouse effect and “global warming” that is currently under way.

* Deforestation also contributes to global warming. Trees use carbon dioxide and give off oxygen in its place, which helps to create the optimal balance of gases in the atmosphere. As more forests are logged for timber or cut down to make way for farming, however, there are fewer trees to perform this critical function.

* Population growth is another factor in global warming, because as more people use fossil fuels for heat, transportation and manufacturing the level of greenhouse gases continues to increase. As more farming occurs to feed millions of new people, more greenhouse gases enter the atmosphere.

Ultimately, more greenhouse gases means more infrared radiation trapped and held, which gradually increases the temperature of the Earth’s surface and the air in the lower atmosphere.

The Average Global Temperature is Increasing Quickly
Today, the increase in the Earth’s temperature is increasing with unprecedented speed. To understand just how quickly global warming is accelerating, consider this:

During the entire 20th century, the average global temperature increased by about 0.6 degrees Celsius (slightly more than 1 degree Fahrenheit).

Using computer climate models, scientists estimate that by the year 2100 the average global temperature will increase by 1.4 degrees to 5.8 degrees Celsius (approximately 2.5 degrees to 10.5 degrees Fahrenheit).

Not All Scientists Agree
While the majority of mainstream scientists agree that global warming is a serious problem that is growing steadily worse, there are some who disagree. John Christy, a professor and director of the Earth System Science Center at the University of Alabama in Huntsville is a respected climatologist who argues that global warming isn’t worth worrying about.

Christy reached that opinion after analyzing millions of measurements from weather satellites in an effort to find a global temperature trend. He found no sign of global warming in the satellite data, and now believes that predictions of global warming by as much as 10 degrees Fahrenheit by the end of the 21st century are incorrect.

What Causes Global Warming?

What is really causing the global warming and rapid climate change we're beginning to see worldwide?

Global Warming is Unstoppable and Humans are to Blame, says UN Report

On Friday, February 2, 2007, the United Nations’ Intergovernmental Panel on Climate Change (IPCC)—the leading international group of climate scientists—published a 20-page summary of a much longer scientific report, The Physical Basis of Climate Change [pdf], which confirms global warming is now “unequivocal” and states with more than 90 percent certainty that human activity “very likely” has been the primary cause of rising temperatures worldwide since 1950.

The report summary also says that global warming is likely to continue for centuries, and that it is already too late to stop some of the serious consequences it will bring—even if mankind could somehow hold the line on greenhouse gas emissions worldwide starting today.

Despite those grim conclusions, however, the report does say that there is still time to slow global warming and to lessen many of its most severe consequences if we act quickly. At the same time, the IPCC report avoids prescribing specific strategies, leaving that to policymakers worldwide, the audience for which the report summary was prepared.

This article answers some of the most common questions about the IPCC report and its predictions for the future of our planet.

Q: What are the expected consequences of global warming based on the summary of the fourth IPCC assessment of climate change science?

A: Global temperatures are expected to increase 3.5 to 8 degrees Fahrenheit by 2050, and there is a 1-in-10 chance that the increase could be far worse, a risk that many experts believe is too great to ignore.

Rising temperatures will alter global weather patterns that have a direct effect on water supplies and agriculture. Deserts will expand, the frequency and severity of droughts and deadly heat waves will increase, and snow will disappear in most areas—except on the very highest mountain peaks.

Sea levels worldwide are expected to rise between 7 and 23 inches by 2100, and will continue to rise for at least the next 1,000 years.

Fierce storms, such as hurricanes, will become more frequent and more floods will occur, due to rising sea levels and heavier rainfall in some areas.

Continuing global warming will also lead to a rise in many diseases that are deadly to humans. Flooding will contaminate water supplies in some areas, giving rise to infectious diseases. Rising temperatures will also increase the range and breeding grounds of mosquitoes and other disease-bearing insects, exposing more people to diseases such as malaria, dengue fever, yellow fever and encephalitis.

Q: What does the IPCC report say about the relationship between global warming and human activity?

A: In the strongest language ever used by the IPCC, the report says that human activity “very likely” has been the primary cause of global warming since 1950. (The term “very likely” indicates more than 90 percent certainty.)

The report summary also says that human activity has been a major contributor to climate change since the Industrial Revolution, which began around 1750.

Global concentrations of carbon dioxide, methane and nitrous oxide—three of the most notable greenhouse gases—have increased significantly over the past 250 years as direct result of human activities. Concentrations of carbon dioxide and other greenhouse gases now far exceed any found during ice core research spanning the past 650,000 years.

The increase of carbon dioxide is due primarily to the use of fossil fuels, such as oil and coal, and changes in land use, such as cutting down forests to make way for farming, housing and other development. Increases in methane and nitrous oxide are primarily due to agriculture.

Q: What does the report say about the risks of rising sea levels due to global warming?

A: Sea levels worldwide are expected to rise between 7 and 23 inches by 2100, and will continue to rise for at least the next 1,000 years. By comparison, global sea levels rose 6 to 9 inches in the 20th century, so the effects of global warming on sea levels are clearly accelerating.

Rising sea levels will create millions of environmental refugees as people are forced to leave their homes in coastal areas. Many nations will be unequipped to cope with the waves of immigrants looking for new homes.

Increased levels of carbon dioxide in the atmosphere will change the pH balance of seawater, making it slightly more acidic. Although the oceans will remain alkaline, marine biologists predict that a shift toward greater acidity could threaten the survival of coral reefs and plankton—an essential and fundamental link in the marine food chain.

Even a moderate increase in the build up of greenhouse gases in the atmosphere could easily push average global temperatures to levels last seen 125,000 years ago during a warm period between two ice ages. At that time, sea levels were 12 to 20 feet higher than they are today. Much of the water from that earlier period is now frozen in Greenland and Antarctica, but many of those ice fields are beginning to melt.

Because scientists are not certain how quickly polar ice will melt, the estimates of sea level increases in the report are based on how much warming oceans will expand and do not take into account anticipated runoff from melting ice on land in Greenland and the polar regions.

Top 10 Things You Can Do to Reduce Global Warming

1. Reduce, Reuse, Recycle
Do your part to reduce waste by choosing reusable products instead of disposables. Buying products with minimal packaging (including the economy size when that makes sense for you) will help to reduce waste. And whenever you can, recycle paper, plastic, newspaper, glass and aluminum cans. If there isn't a recycling program at your workplace, school, or in your community, ask about starting one. By recycling half of your household waste, you can save 2,400 pounds of carbon dioxide annually.

2. Use Less Heat and Air Conditioning
Adding insulation to your walls and attic, and installing weather stripping or caulking around doors and windows can lower your heating costs more than 25 percent, by reducing the amount of energy you need to heat and cool your home.

Turn down the heat while you're sleeping at night or away during the day, and keep temperatures moderate at all times. Setting your thermostat just 2 degrees lower in winter and higher in summer could save about 2,000 pounds of carbon dioxide each year.

3. Change a Light Bulb
Wherever practical, replace regular light bulbs with compact fluorescent light (CFL) bulbs. Replacing just one 60-watt incandescent light bulb with a CFL will save you $30 over the life of the bulb. CFLs also last 10 times longer than incandescent bulbs, use two-thirds less energy, and give off 70 percent less heat.

If every U.S. family replaced one regular light bulb with a CFL, it would eliminate 90 billion pounds of greenhouse gases, the same as taking 7.5 million cars off the road.

4. Drive Less and Drive Smart
Less driving means fewer emissions. Besides saving gasoline, walking and biking are great forms of exercise. Explore your community mass transit system, and check out options for carpooling to work or school.

When you do drive, make sure your car is running efficiently. For example, keeping your tires properly inflated can improve your gas mileage by more than 3 percent. Every gallon of gas you save not only helps your budget, it also keeps 20 pounds of carbon dioxide out of the atmosphere.

5. Buy Energy-Efficient Products
When it's time to buy a new car, choose one that offers good gas mileage. Home appliances now come in a range of energy-efficient models, and compact florescent bulbs are designed to provide more natural-looking light while using far less energy than standard light bulbs.

Avoid products that come with excess packaging, especially molded plastic and other packaging that can't be recycled. If you reduce your household garbage by 10 percent, you can save 1,200 pounds of carbon dioxide annually.

6. Use Less Hot Water
Set your water heater at 120 degrees to save energy, and wrap it in an insulating blanket if it is more than 5 years old. Buy low-flow showerheads to save hot water and about 350 pounds of carbon dioxide yearly. Wash your clothes in warm or cold water to reduce your use of hot water and the energy required to produce it. That change alone can save at least 500 pounds of carbon dioxide annually in most households. Use the energy-saving settings on your dishwasher and let the dishes air-dry.

7. Use the "Off" Switch
Save electricity and reduce global warming by turning off lights when you leave a room, and using only as much light as you need. And remember to turn off your television, video player, stereo and computer when you're not using them.

It's also a good idea to turn off the water when you're not using it. While brushing your teeth, shampooing the dog or washing your car, turn off the water until you actually need it for rinsing. You'll reduce your water bill and help to conserve a vital resource.

8. Plant a Tree
If you have the means to plant a tree, start digging. During photosynthesis, trees and other plants absorb carbon dioxide and give off oxygen. They are an integral part of the natural atmospheric exchange cycle here on Earth, but there are too few of them to fully counter the increases in carbon dioxide caused by automobile traffic, manufacturing and other human activities. A single tree will absorb approximately one ton of carbon dioxide during its lifetime.

9. Get a Report Card from Your Utility Company
Many utility companies provide free home energy audits to help consumers identify areas in their homes that may not be energy efficient. In addition, many utility companies offer rebate programs to help pay for the cost of energy-efficient upgrades.

10. Encourage Others to Conserve
Share information about recycling and energy conservation with your friends, neighbors and co-workers, and take opportunities to encourage public officials to establish programs and policies that are good for the environment.

These 10 steps will take you a long way toward reducing your energy use and your monthly budget. And less energy use means less dependence on the fossil fuels that create greenhouse gases and contribute to global warming.

source: http://environment.about.com/
http://environment.about.com/od/globalwarming/a/ipcc_report.htm
http://environment.about.com/od/globalwarming/tp/globalwarmtips.htm

ASSIGNMENT 8

As a student, you were invited by the Dean of the Institute of Computing to attend a seminar-workshop on information systems planning with some of the faculty members. In one of the sessions, a discussion of outsourcing came up. You have been asked to present your evaluation about outsourcing the information systems functions of the school.

Required:

You are to take a position- outsource or in-source and justify your position. (3000words)

To think about it is really hard.

Well i'll just justify the what i can give.

To start with.
**************************************************************************************************

Out- Sourcing

to present this .

EXECUTIVE SUMMARY

In the 1990’s, the call center outsourcing industry blossomed into a $10 billion juggernaut with a sustained

yearly growth rate of 25%. From humble beginnings as a high-volume, low-quality dumping ground of lowvalue

customer contacts, the outsource call center has become a critical part of nearly 85% of all Fortune

1000 customer contact solutions. It is estimated that by 2005, the outsource call center industry will reach

$30 billion in revenues in the United States, with nearly 20% of all customer contacts being handled by an

outsourcer.

But what does this mean to you and to your business? Why the recent boom to place your customer

contacts with a different company? How do your customers feel about it? What’s in it for you and what’s in

it for your customer?

This white paper focuses on the decision-making process involved in determining whether it is to your

strategic advantage to outsource all or part of your customer contact center, or to manage your own

business in-house. Key issues that will be discussed are:

• Growth and Trends in the Outsourcing Market. While the overall customer contact industry growth

has reached maturity, the customer contact outsourcing will increasingly be an option selected by

companies. Companies will seek outsourcers who can meet quality requirements and reduce costs.

Near-shore and offshore outsourcing is increasingly becoming an option for companies and will play a

significant role in the future. This section will review the trends in outsourcing and look into the future

of the outsourcing market.

• Determining if Outsourcing is a Viable Alternative for Your Company. Companies within the same

industry may take very different outsourcing strategies. Some may not utilize outsourcing at all, others

may outsource all of their contact center work, others may utilize a mix of internal operations and

outsourcing while still others may change their strategy over time. This section will review the key

factors used by companies in determining their outsource strategy and provides a checklist to help you

determine if outsourcing is right for you.

• Selecting the Right Outsource Group. An outsource relationship should be a partnership.

Partnership requires that there be a strong alignment between the needs of your company and the

capability of the outsource provider. This section reviews the process companies should use in

selecting an outsource partner and how to balance the areas of quality, cost and strategic fit in the

decision making process.

• Leveraging Your Outsource Partnership. It is not enough to engage an outsource partner,

companies must learn to leverage the relationship to their greatest advantage. This section will review

common ways in which a company can leverage their outsource partner’s capabilities.

The approach outlined in this white paper provides proven methods for determining a company’s

operational strategy, outsource vendor selection and relationship management. Destination Excellence

has guided numerous clients though this process achieving a high level of success.

THE GROWTH OF THE OUTSOURCING MARKET

Customer Contact outsourcers have been in business as long as the industry itself. Most of the 1980s
were spent in relative anonymity for the industry as a whole. It was not until the end of the decade that
more than 50% of businesses offered toll-free service to their customers.
The mid-1990s saw rapid growth in the customer contact industry as a whole. This growth was driven by
the increased use of toll-free services by business, with nearly 9 in 10 businesses offering toll-free service
by the end of the decade.
Businesses Offering

Much of the move to increased toll-free services was driven by the economics of contact centers and
customer needs. Coming out of a difficult economic decade in the 1980s, businesses sought to reduce
field services costs by replacing those services with customer contact groups. In addition, customers
demanded the convenience of telephone service and support as they continued to place value on
convenience, speed and time saving activities.
In the midst of the 1990s came the Internet revolution with the introduction of the first user-friendly
interface, Mosaic. While companies attempted to harness the power of the Internet to reduce customer
contact costs, the speed and technology of the Internet could not replicate the ubiquity, speed and
efficiency of toll-free service. Rather than reducing contact volumes, the Internet supported increased
volumes.

The customer contact outsource market gained significant visibility in the early 1990s. Originally a
backwater market, several events converged to increase the visibility of this market.
First, the market had reached a size and scale that began to attract attention. In 1990, the outsource
market reached $1 billion and was growing at a rate of 40% per year in the first half of that decade.
Second, the industry began to consolidate as larger companies saw the opportunity to bring significant
scale and geographical diversity into the market. Third, to fund the consolidation and expansion, manycustomer contact companies went public, allowing some of the first outside view into the economics of the
business.

The early view of the business thrilled the financial analysts. Their enthusiasm was so great, that
outsource contact center companies carried valuations (P:E ratios) in excess of Internet companies.
Exhibiting growth rates of well over 50% (part through market growth, part through acquisition), analysts
thought they had found a diamond in the rough.
The enthusiasm of the analysts was soon brought back to earth when it became clear that the growth of
outsource companies would be limited to market growth in the long run. In addition, the key markets
supported by outsourcers ran into their own issues, quenching the growth of the market for a short period of
time. The P:E ratios of outsource companies are now at normal levels.

• The customer contact market has completed its growth phase and has now reached maturity. The rapid
deployment of customer contact centers by companies has slowed, having reached the saturation point.

• The customer contact market will begin to decline in 2005 due to electronic messaging alternatives (via
the Internet and through other means). The mix of transactions in contact centers will become more
electronic as call volumes flatten and electronic communications increase. Demographics, technology
and an improved wireless infrastructure will make electronic communications more convenient, easier
and faster causing customers to dramatically increase their use of electronic messaging. The lower cost
of handling electronic messages will cause the overall decline in revenues of the contact center market.
PC and Internet

Internet Purchases

• Customer will perform a significant amount of transactions beginning around the turn of the decade, with
almost 50% of transactions done through electronic messaging by 2020. This will be driven by the
speed of access at the home as well as the user-friendly technology on web sites. These advances will
reduce the staffing in real-time customer support.
Gaining a Competitive Advantage Outsourcing v Insourcing
Page 4 Copyright© 2003 Destination Excellence, Inc.
877-433-7839 or www.destex.com

• As the outsource market in the U.S. reaches maturity, offshore companies will provide a valid, and less
costly, alternative to North American-based sites. Spanish language calls (representing about 5% of the
market) will generally be placed in Spanish-speaking countries. English language calls will be placed
increasingly offshore into countries where English as a second language is readily available, the quality
of operations is similar to that in the U.S. and the cost is as much as 50% lower than U.S. based
centers.

• Customer contact operations will become more of a commodity in that an outsource group will be able
to replicate the success of internal groups in terms of cost and service. Like payroll processing, contact
operations will be considered for outsourcing to reduce costs or resource requirements within a
company. The penetration of outsourcing will increase to over one-third of the total market around
2010.

The challenge for companies utilizing customer contact groups is to look ahead and develop a strategy
based on their specific requirements. The questions companies must ask are:
1. Is outsourcing a viable option for our company?
2. If I decide to outsource, how do I select the right outsource strategy and partner?
3. How do I continue to leverage the strategic value of my customer contacts with an outsource partner?
Each of these questions is reviewed in the following sections.

Strategic Necessity

Whereas culture is internally driven, strategic necessity is externally driven. Culture may pull in one
direction, but strategic necessity pulls in a different direction. In the 1980s, many companies had a culture
of performing all functions internally and on U.S. soil. Due to increased international competition U.S.
companies were forced to rethink this strategy or face extinction. Very few issues motivate change greater
than the possibility of extinction.

Strategic necessity is a reaction to outside forces. When a company must react strategically, the remaining
issues (quality, annual cost, capital cost, human resource availability and risk) must be reviewed in careful
detail to ensure the proper decision is made. Strategic necessity in the first two decades of the 2000s will
be driven primarily by cost. In the 1990s, companies began to recognize that outsource companies were
competitive on key non-financial measures (e.g., overall customer service) while also matching strategic
capabilities (e.g., partnering with internal groups and providing market intelligence). Consequently, the
strategic necessity of maintaining internal call center operations began to decline.
Strategic necessity will be measured and managed differently by each company. The litmus test used, however, is
the same. The key question is, what strategic value do internal operations provide and at what cost.

Quality

In almost every industry, the quality of the customer contact center is more important than its cost. Quality
here will refer to the quality of the overall customer experience.
Key concepts such as lifetime value of a customer, the cost to attract versus retain a customer and support
of brand image make quality one of the key factors in determining an outsource strategy. The revenue and
margin lost by poor quality can easily outweigh the cost savings of outsourcing.
Annual Cost

The term annual cost is purposely used here. Companies generally have a good handle on what internal
operating costs are for outsource groups. However, the analysis of determining true outsource costs must
not be limited to the operating costs of the contract (e.g., staffing, project management, administration).
These costs must also include incidental costs (e.g., programming, licenses, special requests) that may be
charged by the outsourcer as well as costs borne by the company in managing the contract. These latter
costs include the costs of personnel (e.g., contract manager, QA personnel) and travel.
Capital Cost

Internal customer contact centers often maintain a continuous battle to update technology to implement
new services expected by customers. Often, internal groups receive such investment well after the
customer need is identified and customer complaints have been generated.

Capital allocation to the contact center is difficult because it often competes against core business units.
These business units invest in capital to create new products or services that have a projected return. The
contact center operations, in contrast, often have to implement technology to avoid a decline in customer
contact quality that is difficult to measure.

Outsource companies have the advantage in that they must constantly maintain a competitive infrastructure
for their clients. The cost of the infrastructure is built into pricing eliminating the requirement of client
companies to spend significant capital to utilize this technology. Companies may look to outsourcers as a
way to maintain a competitive technology base without maintaining an expensive infrastructure.

Human Resource Availability

Companies that do not have contact centers as a key part of their business often find it is difficult to locate
and retain qualified contact center professionals, particularly at the middle and executive levels. The
reasons for this are simple. First, the discipline and expertise required for a contact center are not normally
found within the business. This often requires companies to recruit candidates from outside the company.
Second, the career path of contact center professionals may be limited if a path to alternate careers within
the company are not available. This causes turnover within contact center positions.
Some companies may find that the constant battle to maintain strong and knowledgeable leadership within the
contact center distracts them from the core business. They may choose outsourcing as a solution to this issue.

Risk

Risk is an inherent component of outsourcing. A company and its outsourcer may have similar program
goals, but the ultimate ways in which they achieve revenue and profitability are different. Most outsource
companies reduce risk by tying their success to maintaining long-term relationships with clients, causing a
closer alignment of objectives. While this reduces, it does not eliminate risk.
Every company has a risk threshold that they are willing to tolerate. For some companies, regardless of
how small the risk, they will not outsource their contact operations. Other companies are comfortable
establish systems to manage risk, viewing the need to control the output but not the operations themselves.

SELECTING THE RIGHT OUTSOURCE PARTNER

Outsourcing is a partnership. Like any partnership, the objective of the partnership is to add value to both
parties. Partnerships that accomplish this endure over long periods of time. The ramifications of selecting
the wrong partner can be painful.
Fortunately, the process of selecting a positive partnership is well known. Destination Excellence has
assisted a number of companies in selecting partnerships successfully. This process is detailed further in
this section. Adherence to the process outlined here significantly increases the quality and output of the
outsource process.

Develop Your Requirements

First and foremost, a company must detail its expectations. In companies who have performed customer
contact work internally for a long period of time, this process may require significant documentation.
(Internal operations tend to be less documented, as procedures and training are often the intellectual
capital of individuals within the center.) This documentation is critical, however, to properly assess the
capabilities of the companies considered.
Documentation of a program to be outsourced should include:
• An overview of the company and how the program supports overall company goals.
• The mission and vision of the program along with specific and measurable objectives/expectations
(including turn-around times and service levels).
• Volume projections by type (e.g., calls, e-mail, chat), month (weekly if sufficiently cyclical), day (day of
week distribution), and holiday. If media drives some portion of volume, then outline the expected media
schedule.
• Average talk times and after call work times by contact type.
• Hours of operation, including holidays and other events. Include expectations on downtime and disaster
recovery.

• Hiring profiles, initial training requirements, how training will be developed and delivered.
• Non-productive time requirements for training, coaching, monitoring, ongoing training and other activities
desired by the company.

• Estimated staffing levels.
• Schematic of the workflow.
• Schematic of the expected systems set up and system interfaces back to the company.
• Other requirements, as appropriate.

This information will be crucial to the development of an RFP. If information is not available at this time, it
will be required in response to the RFP.

The RFP Process

The RFP process begins with the selection of vendors to include in the distribution of the RFP. This can be
accomplished in one of two ways. First, a company can send an RFI with an overview of the project to a
broad array of vendors and use the responses to the RFI to narrow the field. Alternatively, the company
may survey the industry and pre-select a number of vendors who have a solid reputation of performing well
against similar programs. Only companies with a high probability of success in the program should be
included in the RFP.

The RFP itself should reflect all of the information that a vendor will need to submit a complete and
qualified bid. While there is no single format that is best for every RFP, the following provides an outline
that has worked well in a number of submissions:
• Secrecy Agreement. The signed Secrecy Agreement should be included with the RFP for the vendor.
• Instructions to Bidders. Standard legal language should be included to make clear the time frames,
submission criteria and release the company from any legal obligations in distributing the RFP.
• Bid Selection Criteria. This outlines how the vendor will be selected. The criteria should be clear enough
for vendors to understand what the company considers most important, yet remain flexible to provide the
best overall selection process.
• Timeline. The timeline for submission, review, selection, contract negotiation and implementation should
be outlined in detail.
• Program Overview and Requirements. The requirements developed (see previous sub-section) are
detailed in this section.
• Sample Contract. A standard company contract should be included so that vendors may judge what
contractual criteria may impact their pricing and performance. Vendors should list any objections to the
contract in the Additions, Variances and Exceptions section.
• Bidder Response. A standard response sheet with pricing (using a single pricing format will increase
understanding), performance, support services, systems and other information should be filled out be
each vendor. A clear and consistent bid sheet will allow for objective comparisons between vendors.
Companies may opt to allow an additional response to be provided by the vendor in a freestyle format.
• Additions, Variances and Exceptions. Providing a specific section for deviations from what was
requested allows companies to ensure they are clear on what has been requested will be adhered to.
• References. Require references from similar applications from current and discontinued clients. Also
provide some investigation outside of the references provided to determine what issues companies may
have with the vendor.

After the RFP is developed and the vendors who will receive the RFP selected, each vendor should be
contacted to obtain their level of interest for inclusion. Any vendor who wishes to be included in the RFP
must sign a Secrecy Agreement protecting the information that is being provided to them. Upon receiving a
signed Secrecy Agreement, the vendor will receive a copy of the RFP.
After all the responses have been received, the vendor assessment can begin.

Vendor Assessment

Upon receipt of all vendor RFP responses, the company must determine if some vendors should be
eliminated from consideration. Causes for elimination may include pricing, quality of response, service
capabilities or unacceptable exceptions. Any vendor eliminated should be notified immediately that they
are no longer going to be considered in the process and the reasons why.
Destination Excellence recommends companies evaluate vendors on three specific criteria. These criteria
should receive the appropriate weighting to reflect what is most important to the company. The criteria
include:

Quality. Recommended to be the most highly weighted criteria (normally 50% or more), quality reflects
the ability of a vendor to produce consistently high levels of performance. To judge quality, Destination
Excellence utilizes its 100-Point Audit to evaluate vendors (see Optimizing Customer Care Operations –
The 100 Point Audit for specifics). Vendors receive a score based on a one to two-day audit of their
operation.
• Cost. Vendors’ submissions are also evaluated in terms of cost. Costs include start-up costs, ongoing
costs and termination costs. Costs should be determined over the proposed lifetime of the partnership
agreement. Costs may be factored by year to take into account the greater certainty in costs in the early
years.
• Strategic Fit. For longer-term partnership agreements, an evaluation of vendors is necessary to
determine if the direction and investments vendors plan to make are consistent with the needs of the
company. For example, investments in integrated marketing databases may be important and therefore
should receive consideration. While the strategic fit assessment is rarely the final determinant of the
selected vendor, in cases where the current quality and cost are essentially the same between two
vendors, a strategic fit assessment can help select the best long-term vendor.
With the scores and weights from the above sections, vendors can be rank ordered in their overall score.

LEVERAGING YOUR OUTSOURCE PARTNER

There are many advantages to outsourcing and companies should look to maximize the advantage of their
outsource partnership. It is in the best interest of the company and their outsource partner to fully leverage
this relationship.

This section will review three common ways companies leverage the outsource partnership. These include
access additional operating capacity (operational flexibility), accessing an untapped workforce or access
new technology without the capital cost.

Operational Flexibility

Companies often find challenges in coping with the cyclical nature of their business. In some companies
the peak contact month to low contact month ratio can be as much as two, or higher. Cyclical peaks and
valleys within a year may cause companies to hire new staff only to lay off that same staff later in the year.
This can cause strain excessive strain within the workforce and harm a company’s reputation within the
community. Outsource partners can absorb cyclicality by utilizing people across a variety of programs
throughout the year. This approach provides a stable environment for a company and its work force
throughout the year.

Other companies may have a relatively low peak month to low month ration, but may have challenges
maintaining a trajectory of growth. This is particularly true in newer industries where annual growth rates
can easily exceed 25%. Opening new facilities, project managing technology installations and installing a
new workforce can distracting a company from managing its core business. Such distractions can
ultimately stunt the growth of the business itself. Utilizing outsource groups allows companies to maintain
their focus on the core business without losing market momentum.
Lastly, some companies wish to avoid spending significant capital on new facilities. Capital investment
often receives a higher rate of return in other parts of the business outside of the customer contact
operations. After maximizing utilization of existing facilities, companies turn to outsource groups to provide
additional capacity without capital spending.

Workforce Access

Contact center positions have become the largest entry-level opportunity in the United States. The growth
in employment in the industry has created challenges of locating qualified candidates and turnover of the
existing workforce for companies. In addition, normal local demographic changes have made previously
attractive locations longer attractive for call centers. Companies find themselves in a quandary of
escalating wages in a constricted talent pool with the only viable option of relocating facilities every five
years to follow workforce trends.

Contracting outsource groups allows companies to disconnect themselves with labor location issues,
leaving that issue in the hands of the outsource provider. Due to their size and flexibility, outsource groups
are particularly adept at maintaining flexibility in labor locations to attract a strong workforce in
geographically disperse areas. This allows companies to tap into a constantly changing labor pool without
incurring the expense of moving existing facilities.

The Outsource Partner Perspective

While this section looks primarily at ways to leverage the relationship to the advantage of the client
company, what is the perspective of the outsourcer? Is this truly a partnership that works both ways? In a
word, yes.

Outsource groups’ position in the market is to add the greatest value to any client. The outsource group
must have a complement of facilities, people and technology in order to position themselves competitively.
As with any other business asset, outsourcers gain financial benefits as the utilization of their facilities,
people and technology increases.
Good outsource companies also understand there is great value in selling additional services that a client
can leverage, and negative value in selling a client something that they cannot leverage positively. The
best outsource companies build long-term client relationships by providing access to facilities, people and
technology that add significant value to clients thereby building relationships build on trust.

source: http://www.telerxhealthcare.com/pdf/telerx-wp_outsourcing.pdf