Part - IV

(To read Part III, click on the �Previous Article� link, on the left)

Due to the early misconception about medical transcription, the offshore transcription business attracted numerous new entrants who were ill prepared. It was viewed as an opportunity to those who either missed the IT boom or felt that they did not have the deep technical skills to compete in that arena. It appealed to many as a high-margin service industry that required minimum capital investment and technical expertise that could be scaled with the corresponding revenue increase. The job content was misunderstood to be similar to a high-level data entry position and the basic language skills of those with English as the second language was considered adequate for the job. The training, skill levels and the effort to deliver a quality product were underestimated.

Before the industry had time to deal with the problems of offshore transcription and work through the issues, too many players were already competing for work that was not there. Several so-called consultants took advantage of the situation and exploited the ignorance of those who were far removed from the reality. The situation got worse as they began to realize that they have no recourse to recuperate the money invested and in a desperate move to survive, many resorted to measures that further deteriorated the reputation of everyone in the industry. With several companies in the fray, the downward spiral continued until the shakeout completed its cycle. Lowering of the rate, sloppy work, unreliable delivery and total lack of understanding of the industry requirements continue to hurt everyone in the business even today.

Like most beginnings of a new industry, the fittest survived and the industry is beginning to pull itself from the abyss. Those who were determined to stay and make something out of the opportunity are beginning to see their perseverance pay. Many who started with the first MTIA (Medical Transcription Industry Alliance) conference in Las Vegas and had the sustaining power to continue their presence in the subsequent four annual sessions, notice a significant difference in the perception of the offshore transcription vendors. The last conference in Tampa, Florida ended with the International Transcription opportunity session that was attended equally by the vendors and potential customers. The industry is beginning to recognize that the offshore companies offer an opportunity to meet the demands of the industry. By working together everyone can find a viable economic solution.

The investment required by an offshore transcription company:

Most offshore companies have underestimated the cost of setting up a transcription facility. Many companies failed to recognize that the salary cost could be prohibitive while the company is struggling to develop the workforce and acquire business. The birth of multiple companies at the same time even in the absence of adequate work also resulted in unjustified escalation of labor cost and adversely affected the cash flow problems.

The payment cycle is stretched due to the presence of middlemen often extending upwards of 60 days, further exacerbating the situation. Until the relationship is built, the workload often fluctuates, requiring the maintenance of an underutilized workforce. To plan for growth, substantial resources have to be spent on training and quality.

It has become apparent that most successful companies require a strong presence in the US to build and to grow their business. Coupled with travel expenses, this can be an additional drain on the resource.

Continued�

(To read Part V, click on the �Next� link, below)


(c) Raj Krishnan
Director
Netrascribe