Part - VIII

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

As a young industry, the best option at this point appears to be partnering with an existing transcription company in the US. This may appear to be a low growth and low profit model; the alternative is risky and expensive. Service industry solutions are often sold through relationship marketing. A traditional industry such as healthcare is very cohesive and it is often difficult to break in due to established relationships and long history. Proximity to the client and regular interaction with the client is necessary without which simple issues grow to become major problems. A minor cost advantage is often not enough to sway the customers to switch their business and the sales cycle is often long and painful.

In the long run the doors will open to those transcription companies with the ability to deliver and build the experience.

This is not to rule out the possibility of direct marketing as several companies have taken this approach and have shown signs of success. It certainly is a risky way to enter the business. The cost of marketing in the US is an expensive proposition as it is apparent even in the high revenue IT industry. It is uncommon to see software products marketed by software developers from India in the US market. We continue to play the role of subcontractors as it offers the safe route to limited but assured success.

The future

This is neither the first time nor is MT the first industry to see the movement of work to countries outside the US. Perhaps the critical nature of the MT work makes it difficult for the vendors to successfully manage the transition. But it is something that can be overcome with time and proper preparation. In spite of occasional obstacles due to protectionism and initial skirmishes, the US has always managed to put the final outcome as the driver of these decisions. The US is one of the few countries that has realized that the best way to crate and protect jobs is to let the market forces decide what works. By choosing a path that makes economic sense, growth is assured and the demands are met. The offshore transcription service offering makes good business sense for those who need the service and for the providers. By properly managing the expectations and working together, this has all the ingredients to become a success story.

Concluded.

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Raj Krishnan holds an MBA from India and MS in engineering from McGill University, Canada. Over the last 20 plus years in North America, he has worked for Fortune 50 companies including a Big Five consulting company, and Start-ups. He is a co-owner of Netrascribe, a Medical Transcription company based in Chennai and manages the US operations.


(c) Raj Krishnan
Director
Netrascribe