When And How to Outsource Professional BPO Services?

by Managed Outsource Managed Outsource Solutions

The success or failure of a business, especially start-ups, depends a great deal on how efficiently the various business processes are carried out. Resources needed and budget involved are major considerations. If you invest in resources that fail to generate good returns, it will lead to failure. This is where back office outsourcing and business process outsourcing services become significant. Companies adopting the outsourcing model usually benefit from cost savings and increased productivity. Starting from advertising open positions to recruiting and training new employees and giving them time to adjust to your work processes and organizational culture, the entire process is quite expensive. The people you recruit may turn out to be bad apples and present poor quality work that can have negative consequences for your business. With outsourcing, there is no such risk because you get to work with people with the right talent and skill levels. You can either hire outsourced personnel as additional staff working with your in-house team or choose to outsource your business needs.

Major Outsourcing Considerations

So, how do you decide when and how to outsource? Following are some guidelines:

One of the most important things to consider is the opportunity cost of having the work done in-house. Think about the duties each of your in-house staff is engaged in, and consider the loss involved if you were to assign them to some other major task (other than their usual duties) that comes up. Would some key tasks lose traction? Would customer acquisition drop in some area? In other words, consider the resources or opportunities that you will be sacrificing it you don't get help from a professional third party vendor.
Before outsourcing any task, consider whether you have employees in-house who can carry out the task efficiently. If there is no one who can do justice to the task, then outsourcing to a good service provider is the next best option.
Businesses often spend money on machines and also to train employees if it is required to achieve business needs in the future. But if a task is a one-time need, then it is better to outsource. Also, make sure that you convey your requirements to the third party vendor before outsourcing.
Consider whether outsourcing is the cheaper option. The most important benefit of outsourcing is that it could actually cost you less than having the job done in-house. For instance, consider that you are paying your in-house staff $60 dollars an hour for a particular task and they take 30 hours to complete that project. It will cost you $1800. An outsourcing company may charge you $100 an hour but get the job done in 15 hours. In this case you spend only $1500. You not only save money, but benefit from faster turnaround time as well.
Another important point to consider is whether outsourcing improves the quality of work. Outsourcing guarantees good quality work because your work gets done by professionals who have vast experience in the field. Outsourcing may also bring a fresh perspective to a mundane job, which adds more value to the output. This could lead to the creation of more compelling campaigns that attract more number of customers.

Now, let us talk about a very important consideration when outsourcing – the aspect of security.

To fulfill their duties, service providers would need to access proprietary data, personally identifiable data and other regular data. Therefore, it is important to select a reputable service provider. Your company’s primary data handlers have expertise in managing sensitive data but the service provider may not follow the same standards. So, make sure that you take care of data security while granting an outside party access to your confidential information. It is important that the senior executives, security and compliance team are present while selecting the vendor and all the details should be verified and monitored throughout the process.

Business Process Outsourcing Market to Grow

Market Research Future research estimates that the BPO market will exhibit high growth through 2023 owing to rapid adoption of business process outsourcing services across various industry verticals. The major driving factor in market growth is the growing need for reduction in operational costs. Organizations are compelled to adopt back office outsourcing and focus on core business operations. Increasing technological advancements is another important factor highlighted as being responsible for market growth.

Organizations still hesitant to outsource must consider the global trends and adopt them for the best results. Back office outsourcing and other outsourced solutions could be a great way to meet your business goals without increasing in-house workload, compromising on quality, and losing out on favorable opportunities.