Top 4 reasons why companies outsource

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Outsourcing lets businesses delegate their processes to a third-party company. This is a strategic move for a company when they decide to expand their operations offshore.

Depending on their outsourced services, they can delegate specific tasks in a short term or long term contract. They can even transfer the entire team to their company when they want it.

Why do companies outsource?

If you are new to outsourcing and want to hire your first call centre or BPO company, you might relate to some or all of these reasons. 

1. Save on labor and operational costs

Labour and operational costs are some of the reasons to outsource your services. With hiring local talents, you are required to provide salaries, all required benefits, and workspaces for their jobs.

You should also provide the requirements needed to run your new operation properly. As a small business, this might hurt your budget even more.

Business process outsourcing gives you access to the manpower and resources you need for your operation. Your BPO company helps you hire highly-educated staff in the East with a fraction of a cost with their local counterparts.

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This is because most outsourcing countries such as India and the Philippines have low costs of living. A minimum of $500 per month can go a long way, with bonuses and benefits already covered.

Hiring a BPO company also takes care of the equipment and space you need for the entire operation. This includes office space, desktops, phones, office supplies, to name a few.

Business Process Outsourcing (BPO)
Business Process Outsourcing (BPO)

2. Save time and effort

An eight-hour shift could be easily consumed by routine tasks such as answering emails, data encoding, bookkeeping etc. These tasks also drain the energy, effort, and creativity of your team.

Multitasking can even hurt you and your team’s productivity. As a result, you might have a hard time motivating them and getting the required output quality in their work.

Allow your people to focus on a specific task to improve the quality of work and productivity that they deliver. Outsourcing these repetitive tasks frees-up your core team’s time so they can take on more important responsibilities.

3. Focus more on core competencies

Outsourcing also helps you focus on your core competencies and allows you to delegate small, day-to-day tasks to third-party agencies. When used effectively, this gives you some leverage among your competitors plus work-life balance.

The entire idea of outsourcing is to save time and effort to focus on the core aspects of your business.

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4. Lessen operational risks when expanding or scaling

Lastly, when you outsource your services, you also share some risks with your BPO. This includes operational risks when you decide to put up an office offshore.

They will take care of the requirements and compliances needed to set up a new office. You can make sure that your team will be in a proper office space with adequate workspace, high-speed internet, and a clear phone connection.

They can also take care of employee training, monitoring, and salaries as well since this is included in your package. Also, when demand for a specific task goes down, you can easily scale your teams with them. 

Outsourcing in 2020

Things to consider when hiring a BPO company

A hot debate comes along with the topic of outsourcing. It is always a question whether the company you’ll be outsourcing to can accomplish the tasks needed.

The solution always comes with good research. Consider the following when you decide to hire your first call center or BPO company:

  • How long has the company been on the market
  • The quality and success of projects they’ve made
  • Their online presence
  • Feedback from their current and/or past clients

While these are not a fool-proof solution to finding the right outsourcing agency for you, considering these factors can help you effectively choose a partner agency that could fit your ideal business model.

The best way to ensure that the partnership works out is to be clear about everything. Draft a contract to specify every detail of the outsourced tasks, this way you can get the other party’s commitment and focus to provide the services you needed.

Final thoughts

There are a whole lot more reasons why companies choose to outsource their services. Evaluate at your team, your processes and the work you have to do regularly.

Depending on your vision, outsourcing could be a great strategy to help you maximize your business and reach its full potential.

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