Homeshoring is a Viable and Attractive Alternative to Offshoring in Asia/Pacific excluding Japan

IDC: The rise in Homeshoring sweeping the customer care industry in the United States that could potentially take off in Asia/Pacific Excluding Japan (APEJ) region. Homeshoring is when the customer care agent is located at his/her home, not in a onshore or offshore call center. Business Process Outsourcing (BPO) is still evolving and that enables the region to observe new innovative methods of delivery from other geographies.

Homeshoring is not a new phenomenon in APEJ. The SARS outbreak in 2003 saw the creation of processes and contingencies that allowed people to work from home, Although homeshoring has many advantages, much depends on whether it makes economic and cultural sense for the region as many employers in the region are still weary about letting employees work from home.

Homeshoring is a viable and attractive alternative to offshoring in the APEJ region, particularly for markets such as Australia, Hong Kong, New Zealand and Singapore. For economies that are more sensitive towards offshoring, homeshoring could help shave costs from the need to be located onshore.

Homeshoring enables Service Providers to mix and match their delivery options in their BPO portfolios. The implication for the customer care industry is that processes and infrastructure need to be slightly modified to support this alternative delivery model. It also requires different styles of management to ensure that objectives are still met despite call center agents being spread out. The Service Provider with the cost-competitive homeshoring model will be able to reap significant rewards by delivering more options for the end-user and more satisfied employees while contributing to the improvement of the bottom line of their customer.

• Asia’s traffic jam woes and rising petrol prices As cities in APEJ become more crowded and congested, the commute time to work is becoming longer. In addition, many call centers in APEJ are located in faraway inaccessible tech parks. The continuous increase in petrol prices adds on the cost of commuting to work.

• Bird flu and severe acute respiratory syndrome (SARS) phenomena This experience has encouraged businesses to put in place a contingency plan which allows employees to work outside of the office.

• Women in the workforce APEJ is experiencing an increase in number of women joining the workforce. Consequently, as more women become working mothers, the flexibility of working from home becomes even more appealing if that choice is made available.

• APEJ's aging population In countries such as Australia, Japan, Korea, New Zealand Singapore, and even the PRC, retirement ages are being raised to cope with labour shortages. Having homeshoring as a delivery model could be an attractive option to older workers who might not want to travel long distances.

The following factors will pose challenges to the rise of homeshoring in APEJ:

• Conservative management culture Enterprises generally prefer employees to work in the office. General mistrust towards employees who work from home still exists.

• Infrastructure and networks In order for homeshoring to take off, good infrastructures such as reliable power supply, Internet connections, telephone lines, networks, and other services-related functions such as courier services and transportation have to be in place.

• Massive training required Homeshoring would not work in sub markets that require massive training, as it is harder to facilitate mass training if employees are remotely spread out.

• Demand from employees Homeshoring would only make sense if the skills are in high demand and such workers are demanding such a lifestyle.

• Relocation BPO companies could circumvent homeshoring by relocating to non-metropolitan areas, thus saving costs.

First There was Offshoring, Now There is Homeshoring: Will This Business Process Outsourcing Model Take Off in Asia/Pacific (Excluding Japan Publ 20060725