Online based Typing companies primarily into audio transcription have been popular for the past few years. They offer an alternative to the conventional typing vendors who would have a physical presence and would operate from an office space. For the online companies, users range from big organizations looking to transcribe minute to meetings and conferences to smaller individual consumers such as journalists, academicians, students etc.
Though these online ventures remain strong however they are strongly dependent on the internet platform. If a dotcom bubble looms, their business is also adversely affected. A question arises: Will these online companies go strong in 2013? Well, we think they will continue their growth patterns. Why do we believe that? Here are some of the reasons that will corroborate:
Difference in cost: The main difference is on the cost front. Traditional typing companies that work on a brick and mortar model, have to incur overhead costs. The primary one being the cost of real estate rentals. As a result the prices charged by such companies would be higher since the companies have to recover their rental costs in order to stay profitable. These companies may also face a pressure on rising rentals. Lets say, the rents for the office space in which the typing company operates from rises at a rate of 10% per annum, this would mean the cost of typing services charged to the consumers on per minute of audio will have to be increased by a minimum of 15%. Hence competing on pricing front becomes a challenge.
For an online typing vendor, there are no such costs. Customers can enjoy typing services at much lower rates. The only costs that are incurred are web development charges. Another major cost component that is worth mentioning is the marketing expense, however depending on the strategy this will varies.
Outsourcing: Developed nations such as USA, Canada, UK and Australia are preferring to outsource their non-core jobs to countries such as India, Philippines and Africa. If we look at typing, it must be understood that many organizations hire transcriptionists for their internal work. This internal work can be of the following 2 types:
- Transcribing digital audio events such as seminars, conferences, meetings etc
- Transcribing documents
In order to offset costs, companies are outsourcing typing work. Online companies have an advantage on many fronts such as 24×7 operations, lower costs, complete VA solutions etc. Hence outsourcing becomes an popular choice. However outsourcing has its effects on an economy. Other nations grab the jobs that could have otherwise been generated within one’s own country. Hence, many experts believe that sourcing is responsible for unemployment rates.
Work from home: Work from home jobs have been very popular for transcription companies. Organization employ work from home transcribers. Most of these people are moms, students looking for either a part time job or a full time career as a virtual assistant in order to supplement their incomes. The concept has been popular in American cities such as California and Chicago. Work from home employees have a much lower acquisition costs. Secondly, many overhead costs such as payroll management, employee work space benefits, insurances etc can be reduced. The costs saving on employee front can lead to lower prices of the company’s services.
Thirdly, work from home employees enjoy better motivation levels due to their comfort level. Hence online typing companies a significant edge when it comes to pricing.
Internet is growing: According to Google search trends, consumers make their first search for a product or a service on the internet. The total number of users of internet is growing exponentially as more and more people are using mobile devices, tablets and smart phones to surf the web. The growth of the internet has led to many behavioral changes. The way consumers are finding and choosing suppliers is also changing. Some of these changes are:
a) Transcription Price Comparison: Consumers now go online and check for prices on various sites before making a purchase. Since prices are easy to compare, customers loyalty also varies as companies can lure loyalists by giving discounts and offers.
b) Service and product reviews: Consumers make comparisons of service vendors and products online.
c) Directory listing: Online versions of Yellow pages, directories and classifieds are becoming more popular.
So how does this affect the future of online typing companies? The growth of these companies is related to the number of users of the World Wide Web. Since the number of users are increasing the demand for online services is also increasing. It is more likely that online vendors will benefit more from the growth in the number of internet users.
Summary: Online transcription companies have significant advantages when it comes to cost savings. Many such companies went online back in 1990s when the internet was booming. Since then they have survived many bubble bursts and have done so quite well. With this strengths, customers will benefit the most as they get cheaper services. We think the future of online typing services is bright like sunshine.
About AllTranscript.com: Alltranscript.com is a transcription service website that offers all kinds of typing services. Some of these are interview,podcast, meetings,conference,seminars,thesis,dissertation and mp3 digital transcription. Rates start at $1.10 per minute for a 3 day turnaround service. Users can easily place their orders online and receive transcripts as per their scheduled date of delivery. Find more about Alltranscript at Localizedbiz.