Part - V

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

Majority of the offshore transcription companies have been set up in India and Philippines. Following the footsteps of the entrepreneurs from the Internet era, several start-ups by people of Indian origin have surfaced. Philippines has focused on setting up several production facilities and working with transcription companies in US. Caribbean countries are also making an attempt to enter the market hoping to exploit their proximity and strong English language proficiency.

The industry has attracted a new and different type of entrepreneurs. They are neither the technocrats nor those who ran body-shopping facilities as mere traders of man-hours. A new breed of entrepreneurs with business and domain skills are emerging, forging partnership with their American counterparts.

A more realistic expectation of the workforce from these countries is also solidifying. With the partnership of those who have been in the industry for a long time, proper training and a feedback system, the development of the international workforce can be accelerated to the benefit of everyone. Until now, most of the work done at the offshore facilities is rarely delivered directly to the clients. Though that is changing, the offshore companies and their partners must find ways to share the cost, burden and inconvenience for this partnership to succeed.

� The role of the middleman

If there is any major threat that continues to undermine the viability of offshore transcription, it is the presence of non-value added middlemen. The rise and fall of many offshore companies in India are directly attributable to the foul play by the middleman. Due to the distance and cost of maintaining an office in the US, many offshore companies operate in a vacuum relying on those who claim to have the market cornered in the US. Most of the middlemen in this business rarely have any of their investment at stake and jeopardize the viability of the offshore transcription companies by minimizing and often denying their fair share of the profit. Inconsistent quality and untimely delivery are often the results when multiple layers prevent direct interaction between the end user and the service provider.

Every industry in the world is moving towards an efficient supply chain and distribution system that puts the customer directly in the hands of the producer or with the value added integrators. The Internet is touted as the force that will eliminate those unwanted middlemen and streamline the value chain. Medical transcription is no exception. In order for this industry to survive and flourish, it cannot tolerate those who stand between the supplier and the buyer. The current transcription industry is a needed cushion between the offshore producers and the end users (hospitals, clinics and physicians) and there is no room or need for any more intermediaries. Associations like MTIA and publications like MTIndia.org can facilitate this direct interaction between those whose presence is essential to complete the execution and delivery of services.

� The issues

Quality continues to be a major issue that needs to be addressed. Even after several layers of quality control at the offshore facility, the work needs to be further edited at the US facility. Repeat mistakes, an ineffective feedback system and the lack of progress in quality continue to frustrate the US customers. If this continues at all times, the economic viability of the operation is questionable both in terms of quality and turn around time. A clear transition path that reduces and ultimately eliminates the need for intervention of second level quality by the US MTs is crucial for the success of the offshore transcription business model.

Like any other, the MT industry requires substantial investment for infrastructure, training, resource development, compensation, technology and, marketing. Because of the immaturity of the industry, the risk is even higher and the investment realization period is longer. The obvious labor cost advantage is often misleading and the offshore companies must have a realistic expectation of the profitability both in magnitude and the realization period.

The offshore companies that have managed to survive must focus on ways to repair the tarnished image created by the others who no longer exist to defend or correct it. This can be a time consuming and expensive process.

Continued�

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


(c) Raj Krishnan
Director
Netrascribe