If you’ve been assessing your business needs and looking for a tested solution, you’ve probably considered outsourcing. And surely, you’re aware of the many advantages of this popular practice. But will it work like magic for you? And is now the right time to outsource? How will you know which tasks to hand over to a BPO company? And finally – how will you choose the most reliable partner?
Well, this guide is everything you need. We’ll answer all of the key questions for you. And then, all that’s left to do is some research & you’re ready to thrive!
The ultimate reasons & perks of outsourcing
With a reputable partner and the right timing, anything is possible. All you need is a trustworthy third-party team, and pretty soon, you’ll see astonishing outcomes. So, when talking about all of the benefits of outsourcing, these key points will come to mind first:
- Saving lots of time and money,
- Getting better results and boosting productivity,
- Increasing quality of a product or service,
- Gaining a competitive advantage,
- Obtaining more coverage.
And more. Now, wanna hear the really good news? This famous business practice used to represent the perk reserved for big players. But now, nearly 40% of small businesses enjoy its remarkable benefits. That way, they can kick start their journey toward success more smoothly by reducing hiring, training, and operational costs and getting new investments more easily. And also, they can devote more time to building up a strong brand and online presence. Sounds good? As we said – it works like a charm when done rightly. But there are a few disadvantages of outsourcing and potential risks to beware of.
Cons of outsourcing you should know of
Although this business practice is often a great idea, there are a few risks and challenges of outsourcing to keep in mind. Here’s what you must know:
- Companies aren’t always able to monitor the performance of their partners, which makes it a whole lot more difficult to spot some issues and resolve them in a snap; a lack of quality control could represent a massive obstacle to those who don’t collaborate with the most suitable BPO provider,
- Security risks are also mentioned as one of the disadvantages of outsourcing, but luckily, they can be prevented if you deal with even the smallest problem immediately after it pops up; that way, you will protect the valuable data, secure your clients’ privacy, and avoid a great deal of backlash that would follow,
- Miscommunication and misunderstandings can easily happen due to various factors, like time zone differences, language barriers, cultural gaps, or simply a lack of well-planned meetings, syncs, and overall organizational management.
So, when you find that it’s the right time to outsource, make sure to pair up with an expert team you can truly rely on, establish the best security practices, and outline the most effective ways of communication.
Which job functions do companies outsource?
Countless companies around the globe choose to partner with outsourcing firms to improve their results and save time and money.
And they search for experts outside their teams for many roles and areas. The most commonly outsourced positions include:
- Software development and other IT services; in fact, more than 60% of outsourced functions in the US are tech-oriented,
- HR teams and recruitment services,
- Customer care and call center services,
- Accounting and bookkeeping,
- Digital marketing, content writing, SEO, and more,
- Graphic and web design.
According to studies, nearly 300,000 jobs in the US are outsourced every year. And there’s a huge percent of those who are about to try it out because outsourcing often turns out to be the most dependable and cost-effective choice.
How should we decide which activities to outsource?
Now, there’s another massive dilemma you must untangle: insourcing vs. outsourcing. So how do you decide what to outsource and what to keep in-house?
It’s actually fairly simple. First, analyze your true needs and set some objectives. Then, go toward them by following these steps:
- Make a full list of all the outsourcing possibilities for your business,
- Figure out which roles are the key to operational performance and what is of the greatest strategic importance for your firm,
- Take your time to establish the outsourcing quadrants which will help you grasp whether to outsource some roles completely, keep everything or chunks of work in-house, or simply eliminate a function,
- Spot the best providers, shortlist them, and get to know them.
That’s the best possible way to figure out whether you should find a freelancer or a BPO company for a specific job function. Keep this in mind: the most significant part of the process is when you evaluate your needs and draw conclusions. So be sure to give this section your undivided attention.
Boost your results with the help of a BPO company: What is the best time to do outsourcing?
We’ve covered some basic ground regarding this super-effective and widespread business practice. But, what time is the right time to outsource? Let’s see what the key questions you must ask yourself before diving deep into the world of BPO are.
The essential questions to answer before deciding that it is the right time to outsource are:
Can outsourcing help my company grow?
Since you will likely hire the best talent from various regions for your operations, it is safe to say that finding third-party professionals stimulates steady growth and successful scaling.
Can outsourcing boost my teams’ productivity, skills, and capabilities?
In this domain, here’s the desired outcome to pursue: set up a remote team that would work on the project while your in-house crew focuses on your core operations.
Will it lower some common risks and issues?
If you find a reputable BPO partner, the reputation risks will drop, and financial challenges will be very easy to overcome. Finally, you will lessen the crisis that arises from not having some competencies or knowledge within your team.
Now, let’s review the scenarios when it’s absolutely the right time to outsource.
You can’t keep up with the demand & your employees are juggling multiple roles
Here’s an example of a firm that’s in need of a reliable BPO partner. If sales are brisk and orders are piling up, the pressure to get things done quickly and efficiently becomes severe. So, what do you do? Well, the first question to ask yourself before bumping into another hectic period is: Are we adequately staffed to keep up with the demand and meet all needs?
Let’s say that your answer is negative. So, here’s the next challenge to nail. Does it seem like you have enough time and money to hire in-house specialists? In today’s job market, the answer to this is also likely a no. So, choosing the right BPO partner should be your remedy.
While you’re dealing with these issues, your employees are probably juggling multiple functions. That is often a one-way ticket toward work-related burnout, which is devastating on many levels. So, by reaching out to a qualified and trusted partner, you will impact your teams’ well-being and lower employee churn rates.
Budgets are getting tight & mistakes are burning your cash
Here’s the ultimate (ugly) truth: hiring in house-employees is always expensive. What’s more, it’s often lengthy and tiring. So, spotting the right outsourcing company is a definitive answer to your prayers in this case. Sourcing and recruiting costs, expenses related to an empty seat, paid time off and vacations, sick leaves, and all other fees of this sort will be gone in a snap. Plus, delegating some tasks like, for instance, web development for your eCommerce business will increase your profits. And lastly, some major revenue leaks will become a thing of the past.
Hiring the best talents has become a dead-end mission
This segment hits differently if you run a tech company. Finding and hiring top talents like full stack developers with vast experience is a mission impossible for many. Or, it takes a whole lot of time, money, and effort. So, if you’re struggling with a hard-to-fill position, it could be an indicator that it is the right time to outsource. That way, you’ll meet highly-skilled candidates fast and just skip all the drama.
Get a complete insight: When should you not outsource?
Although outsourcing has evolved and become a tested way to solve many problems, there are situations where this practice might not be a smart choice. Core business competencies, for instance, are not meant to be done outside of your company. Also, mind the proprietary company information and be very careful when introducing a third-party team to your necessities and ways. Everything that’s labeled as intellectual capital is the very heart of every firm, so keep it clandestine (and in-house). Furthermore, watch out for all functions that could be unpredictable in scope or risk structure. BPO partners are excellent when it comes to delivering predictable services. If your particular case is different (and volatile), don’t outsource those jobs.
Now, if you’ve been shifting some roles internally or restructuring your business, then the time isn’t right, and seeking help from an outsourcing company will only backfire.
Learn how to decide what time is the right time to outsource & get the best results
Follow this guide to learn when to reach for a trustworthy BPO company and crush all obstacles. Take notes and pay close attention to the situations when it’s just not smart to outsource. Make sure to analyze your true needs thoroughly, move step-by-step, and do meticulous research when selecting a partner. If the timing is right & your ally is reliable, you’re about to reach your ultimate aim!