- Posted February 24, 2014 by
Outsourcing: Business and Business Solution. But for How Long?
Of course almost anything can be outsourced, but I will focus on the services industry in this article. Whether it's the well-known call center, the handling of emails, research, accounting journal entries, training, web design, or even going to buy groceries, there is now a market for it. In order to be a key player in your given outsourcing market, as with any business, it is vital to become highly specialized and trusted.
Hemant Jindal was on a visit to his native country, India, when he was struck with a plan. A citizen of the United States, he spent ten years as a software engineer before earning an MBA at University of California Irvine. He knew of the many educated Indians that needed jobs, and he had also been exposed to highly skilled and very busy real estate appraisers looking to outsource their data entry work. He quickly capitalized on this opportunity, creating a company called ieIMPACT with just one employee and one customer.
In his initial discovery and business planning processes, Jindal found that many appraisers have historically outsourced their data entry to part-time freelancers. He soon realized that many companies were experiencing the same thing; after months spent training these freelancers, many of the appraisers became dissatisfied with their data entry hires due to unreliability and large communication gaps. Born from this knowledge was ieIMPACT's business model for long-term relationships and a heavy focus on reliability. ieIMPACT has separated itself from the competition by providing stringent quality measures (they triple check all appraisals), maintaining very high employees retention, and always providing very fast customer service.
In a discussion with Jindal, I asked where he sees the data entry industry and his own company heading in the next few years. He believes that the company has only reached 10% of their potential in the real estate market, and has massive immediate market share growth capabilities. However, he did mention that they are likely to see slower growth in about two years, as appraisers start moving towards more automated valuations tools which will require lesser data entry and more manual review processes. Seeing this transition from afar, Jindal has been training his employees to become experts in doing review work for appraisers, something they are already doing for many of their clients.
This outsourcing firm sprouted about 20 years ago from legitimate market needs and has continued to prosper due to a consistent desire to meet client demands. However, it is important to note that the advent of technology is threatening many of these human-based business models. There are engineers across the world designing incredible tools that will allow computers to replace people, and that is a vital problem for Jindal and other business owners. It is important to keep an intentional eye on the development market and continually tweak the business model to provide relevant services; no one wants to be left in the dust.