Are you getting close to that point where you’re unclear whether you should keep expanding your in-house team or simply delegate specific job functions to qualified third-party providers? Well, you’re not alone. Many business owners would love to know what companies use outsourcing and why they decided to embrace this practice.
But, before we get there, it’s quintessential to understand that this business model brings both upper hands and drawbacks. In fact, the results largely depend on how a company plays its cards and who they choose to work with. So, let’s see about the advantages and potential risks of assigning specific roles to outside teams and move on to the brightest examples.
What Is the Benefit of Outsourcing?
With more than 59 million freelance workers in the US and over 300,000 positions outsourced every year, it’s safe to say that this business model is more than popular. That being the case, we can’t ignore the fact that firms around the globe choose to pair up with BPO providers for a very good reason. Or for several reasons, to be precise.
There are quite a few benefits of outsourcing everyone should be aware of by now. According to researchers, businesses used to outsource mainly to save some time and cut some costs. However, the game has changed. Today, more than ever, the BPO market is evolving. And brand-new postulates are leveling the playing field:
- Quality matters more than quantity,
- People are more significant than processes,
- Talent pools are larger than they used to be,
- Multi-vendor options are gaining popularity,
- Small businesses are enjoying the perks of hiring third-party teams.
With these changes, the list of advantages has gotten longer. Nowadays, aside from being cost-effective, outsourcing is efficient in countless ways. It brings new skills and knowledge to the company fast, reduces certain risks, shortens time to market, and increases productivity. Moreover, it impacts employee satisfaction and lowers the churn rate by minimizing stress and splitting responsibilities.
Wanna know the best news so far? These are just a few of the upsides you could enjoy.
Pros and Cons of Outsourcing
If you read the previous paragraph, it’s impossible not to feel enticed. Still, regardless of the multiple advantages of outsourcing you could reap the benefits of, there are some risks and challenges to beware of.
If you don’t pay attention from the very beginning, your new partnership can go from bad to worse:
- Unexpected costs can pop up,
- Communication could head south,
- Time frames could shift,
- Data could leak and cause security issues,
- Quality could decrease,
- Company culture could take a hit.
Now, these downsides sound horrid. How can one avoid them? First of all, choosing correctly and teaming up with a reputable BPO company immediately diminishes nearly every risk. Do thorough research before picking a business partner. Some might seem good on paper but lack certain skills. Others may have a hidden agenda you won’t condone by any means.
Make sure to single out an expert squad with their hearts in the right place and a solid working ethic.
What Businesses Use Outsourcing?
Hiring a BPO company used to be a widespread practice among enterprises and well-established corporations. Nevertheless, that has changed as well, making the future of outsourcing brighter than ever. Now, this business model is well-liked by many – startups and small firms included. Translated into numbers, more than 37% of startups outsourced some job functions in 2018.
The list of the most up-and-up small companies that welcomed third-party development teams aboard includes GitHub, Alibaba, Slack, Basecamp, and others. Fast forward to the present day – they all thrived, grew, and scaled successfully.
It is estimated that 60% of the entire BPO market is based on working with outside IT teams. Nonetheless, regardless of your origins and niche, delegating assignments from the tech domain, outsourcing HR functions, or hiring a fully assembled call center crew – you could be in for a triumph.
Roles You Can Outsource
Are there some tasks you can’t wrap your head around? Do you have pending assignments that you don’t have enough time for? Does your in-house team lack specific skills that are quickly turning into a must-have? If so, you can resolve any of these issues quite promptly and painlessly.
The list of roles and responsibilities companies that use outsourcing mostly focus on delegating includes:
- Web development and design, along with other tech positions,
- Marketing, SEO, social media, and sales functions,
- Payroll, tax filing, and legal work
- Bookkeeping and accounting jobs,
- HR and recruitment,
- Customer service and support, call center, and similar services,
And basically, any other job that requires a specific set of skills you lack. Even more conveniently – you can outsource those jobs that you find tedious.
What Major Companies Use Outsourcing?
For many, choosing to outsource certain roles was quite a game-changer. The record of major companies in favor of this practice is pretty extensive:
To name a few.
All of these brands sound familiar, right? Alibaba, as one of the most famous eCommerce businesses, was bound to try out this alternative. Those who are dedicated to any type of eCommerce know for a fact that relying on outside staff drives the most optimal results, saves time and money, increases RoI, and grants a superb customer experience.
Others also skyrocketed their profits and gained immense fame thanks to thinking a few steps ahead and delegating a little bit of this and a little bit of that. Communication platforms like WhatsApp, Skype, and Slack nailed their aims by hiring outside helpers. How did that turn out? Well, let’s say that WhatsApp started in 2012 with 30 full-time employees. At this moment, it has around two billion monthly active users.
GitHub is a starting point for each aspiring developer and engineer. It was launched in 2008, and today – they can proudly announce having over 40 million users and more than 190 million repositories. In addition, they currently have more than 600 employees.
So, to wrap things up – basically, each of these (now) giants started from scratch and obtained their current reputation and results thanks to choosing the right BPO providers. Despite all the disadvantages of outsourcing people tend to mention – it can lead you straight to the top.
Does Google Use Outsourcing?
Google is an endless source of power and pointless searches that include (but are not limited to) sneezing pandas, cats afraid of cucumbers, and why does my head hurt today. In addition, it is one of the best examples of outsourcing companies. Back in the days, they were staffed by 60 professionals. Then, they have discovered the benefits of web development outsourcing. The rest is history. A simple engine has turned into a gigantic firm and leading light for many.
Are you still skeptical about outsourcing? Well, go ahead – Google it.
Which Is the Best Example of Outsourcing?
Aside from Google, many other titans turned to third-party providers needing specific expertise and external help. You can’t complete the list without mentioning IBM. Why are they considered one of the top examples of BPO done right? Firstly, they’ve started small. And now – their company invests over a million US dollars a year into education and courses. Combining satisfied people with continuous career development is a proven formula for success.
So, which companies are outsourcing? Apparently, most of them. Let’s back this claim up by saying that the BPO market is getting close to reaching USD 245.91 billion in 2021.
How to Make Outsourcing Work?
Obtaining top-grade results can be astonishingly easy. How so? There’s only one single step you mustn’t skip. At the very beginning, your sole quest is to find the right outsourcing company. Everything else will be easy and breezy after that – because their team will take charge of everything you need.
Here’s the whole drill:
- Know your precise business needs, goals, and possibilities,
- Establish a scope of work that should be delegated,
- Set up a selection process properly,
- Pay attention to market reputation and reliability,
- Be transparent and discuss all relevant aspects of the future collaboration,
- Have a chat about the finances,
- Read all contracts carefully,
- Mind the company culture and look for matching core values.
Lastly, there’s one more thing you can try out in order to ensure you have chosen rightly. You could assign your partner to a test project. For instance, this method can come particularly handy when looking to hire an expert software development team outside your organization.
That way, it’s much easier to see how a group operates, whether they deliver what they have promised, and if their essential skills are on point, the way their portfolio suggests.
Learn What Companies Use Outsourcing and Why Is it the Best Solution
So, now that we have covered which companies use outsourcing to boost their gains and enhance their overall effectiveness does the BPO world seem more appealing? It sure does. But still – don’t forget to do your homework. If you choose to hire an outside party to handle parts of your work, be sure you’re letting the right people in.
By deciding to outsource, you can score big time. But you must also take some challenges into consideration. Be realistic, proactive, and determined in your search. That way, you’ll undoubtedly spot the most reliable partner and drive the most favored results.