What Are Some Outsourcing Myths?

For those of us who aren’t well-versed in the practice of business outsourcing, go ahead and forget everything you think you know about it. That may be a bit overboard, but we want you to know that outsourcing is certainly not a bad word.

Despite its reputation, outsourcing is a necessary business function that can tremendously improve your business processes and, as a result, your business’ efficiency when done correctly. Unfortunately, outsourcing is often associated with decreased quality.

Outsourcing is usually explored in company boardrooms initially as a way to cut costs and save money without taking hits to essential metrics. In fact, outsourcing companies often have more resources to dedicate to their core competencies and, as a result, streamline and improve the work done by their full-time teams.

There is absolutely nothing wrong with that. Reduced costs can give businesses increased capital to innovate and grow. This positively impacts the customer directly.

However, outsourcing correctly requires an approach that prioritizes quality, efficiency, and customer satisfaction. If these three elements are not prioritized, outsourcing quickly lives up to its wrongfully earned reputation.

What Is Smartshoring?

At Awesome CX, we like to call this style of outsourcing smartshoring. In other words, a company identifies areas within its operations or business processes that need improving. At the same time, they identify those business processes where they are strong.

Outsourcing business processes where the company is weak, and ensuring the right outsourcing partner is chosen, will lead to more proficient business operations.

For instance, if a business struggles with procuring top talent to innovate new products and is slipping behind the competition, outsourcing human resources and recruiting can tremendously improve its overall operations and revenue growth.

What Are the Commonly Outsourced Business Processes?

Almost any element of the business process, including customer support and quality assurance, front-office and back-office functions, data entry, supply chain management, and payment processing, can be outsourced or offshored by a BPO service provider.

As we mentioned previously, business process is summed up simply as all of the tasks and functions that make the engine of a company move forward. They make the magic happen.

Different types of BPO can be as simple as the way a closet is organized to as complicated as how a computer algorithm uses artificial intelligence to determine when a robotic arm attaches a part on an assembly line.

Let’s take a look at some of the more common business processes companies successfully outsource to a BPO company partner.

Customer Experience

Customer experience is undeniably an essential business process for any organization, regardless of its size or industry. From the quaint "ma and pa" establishments on Main Street to multinational Fortune 500 corporations, the quality of customer support is often the defining factor in a company's reputation.

There are countless ways a company can falter when outsourcing customer support processes, with the common denominator often being a sacrifice of quality for cost-effectiveness.

Indeed, it's hard to find someone who hasn't had a less-than-stellar encounter with outsourced customer support. These experiences underscore the critical importance of smartsourcing, thoroughly browsing the BPO market, and selecting the right BPO provider to meet your specific needs.

At Awesome CX, we place a premium on delivering top-tier customer care. We understand that every interaction with a customer shapes their perception of your brand, and we're committed to making each of these experiences count.

There are several factors that contribute to a successful customer experience outsourcing strategy. Overcoming language barriers, reducing call center wait times, and ensuring the proficiency of customer experience representatives are all important elements of this approach.

To achieve this, we offer comprehensive training programs to all our agents. We believe in equipping our customer support specialists with the knowledge and skills to deliver exceptional customer service and BPO solutions tailored to your company's needs.

Outsourcing customer experience is not a decision to be taken lightly. While it may be tempting to opt for the most cost-effective solution such as hiring a BPO company in India or the Philippines, it's important to remember that your customers' satisfaction is at stake. Ineffective communication or subpar service can quickly frustrate customers and tarnish your brand's reputation.

In other words, cost savings should not be prioritized over quality and customer satisfaction when outsourcing customer experience. A short-sighted focus on reducing costs can negatively impact your competitive advantage and ultimately, your bottom line.

Information Technology

Technology is evolving at an unprecedented rate and it’s virtually impossible to keep up. This relentless advancement isn’t limited to hardware, which seems to innovate and upgrade almost hourly. It also extends to software development, where new solutions and platforms are continually emerging, each more sophisticated than the last.

Each technological advance brings along a new set of necessities. There's the need for new equipment to support the latest hardware and software and the need for ongoing training to ensure that your team can effectively use these new tools.

Alongside these, there's the requirement for new software resources compatible with the latest tech trends and considerable capital investments to fund these continual upgrades.

When you sum up all these requirements, they spell out a single, daunting word — expensive. The financial burden of keeping up with the pace of technological advancement can be overwhelming, especially for smaller businesses or startups with limited resources.

This is where the value of outsourcing your information technology (IT) needs becomes a worthy consideration. By leveraging the expertise and resources of a dedicated IT services company, you can significantly reduce the costs and complexities associated with maintaining an up-to-date tech infrastructure.

These third-party BPO vendors will bear the brunt of the expenses associated with tech advancement. They invest in the necessary equipment, training, software resources, and cybersecurity measures, allowing you to benefit from the latest technological advancements without the associated costs and challenges.

In exchange for their technical support, these vendors charge contract rates that are typically a fraction of the costs you would incur if you were to handle these processes in-house. This makes outsourcing a far more cost-efficient solution for managing your business's technology needs.

Human Resources

Human resources encompasses a broad range of responsibilities, from recruitment and onboarding to payroll, benefits administration, healthcare services, employee relations, and employee retention. Each area is important for maintaining a happy, productive workforce and ensuring your company complies with various labor laws and regulations.

At the federal, state, and local levels, a variety of laws and regulations govern human resources operations — knowing all of them can be a tedious and challenging task, particularly for businesses without a dedicated HR department.

In light of these complications, it's essential to have experienced professionals managing your HR processes. These experts possess the knowledge and skills to ensure that your business adheres to all relevant laws and regulations, thereby protecting you from inadvertently violating an employee's rights. However, hiring such expertise in-house can be costly, as seasoned HR professionals command high salaries.

This is where the benefits of outsourcing come into play. Onshore outsourcing, nearshore outsourcing, and offshore outsourcing services can offer expert HR services for your business model without requiring a substantial capital investment. BPO vendors in this space employ teams of experienced HR professionals who can manage your HR office operations efficiently and effectively.

By outsourcing your HR operations, you gain the advantage of having seasoned professionals handle your HR tasks at a fraction of the cost of hiring an in-house team. This saves you money and frees up your time and resources to focus on your core business functions.

Outsourcing providers in the BPO industry also offer scalable solutions, allowing you to adjust the level of HR support you receive based on your business's changing needs. This cost-effective flexibility is particularly beneficial for growing businesses that need to expand their HR operations quickly and efficiently.

Manufacturing

Manufacturing is an important facet of many businesses and is frequently outsourced, rivaling that of customer care. It's one thing to excel in ideation, design, and innovation, but the actual process of manufacturing those creations requires a different set of skills and resources.

This is particularly true for industries where the manufacturing process is complex and resource-intensive. From major fashion labels to high-tech firms, manufacturing products often requires specialized machinery, skilled labor, and a substantial capital investment. Not every company has the capability or desire to shoulder these requirements in-house.

As a result, many businesses choose to outsource their manufacturing processes. This strategy reduces the need to invest in costly equipment and manpower. It can also lead to superior product quality. By partnering with experienced manufacturers specializing in their respective fields, companies can ensure their products are produced to the highest standards.

Outsourcing manufacturing can also result in significant cost savings. By leveraging the scale and efficiency of dedicated manufacturers, companies can reduce their operating costs and improve their bottom line. This is particularly beneficial for smaller businesses and startups that may not have the resources to establish their own manufacturing facilities.

In addition to cost savings and quality enhancement, outsourcing manufacturing can also boost productivity. By delegating the manufacturing process to a third party, companies can focus their time and resources on their core competencies, such as product development, marketing, and customer service. This can lead to increased innovation and faster time-to-market, giving companies a competitive edge in their respective markets.

What About Startups?

Well-established companies often utilize the benefits of outsourcing work to third-party service providers, helping them accomplish their goals, objectives, and tasks. What about startups and new small businesses?

The age or size of a company does not dictate whether business process outsourcing is a smart move; in fact, the opposite is true.

As a startup, you have a greater need for BPO than companies that are established because you’re starting from scratch.

It’s similar to when you first move out of your parent's house or your college dorm room and move into your own apartment or house. Because this is your first time living on your own, you’ve got a lot of stuff to buy, like pots and pans, plates, cups, silverware, living room, and bedroom furniture, cleaning supplies, food, condiments, blankets, towels, rags, and you get the picture.

Once acquired, these one-time upfront costs will largely go away, but they require a huge investment initially. This is exactly what it’s like being a startup.

Outsourcing, however, is the parent that can loan you some old furniture, pots and pans, towels, and blankets at a much lower cost and give you a better footing as you set out on your new adventure.

Of course, starting a new business from the dream up is much more complicated than moving out on your own, but you get the picture. The benefits of BPO can provide you with the necessary expertise and core business functions to succeed and survive the early years.

Key Takeaways

Business processes literally make it possible for businesses to function. Without them, nothing would happen. No shoes would be made. No photo would be printed. No computer would be built. No hospital could save lives. No restaurant could serve food.

Improving business processes should be a continuing mission that is never abandoned. Always strive to find areas where your business can improve its processes. Sometimes that will involve outsourcing. Sometimes, it won’t. But it should always be pursued.

BPO can be your best friend or your worst enemy, and we want it to be the former, not the latter. When making decisions on what types of business functions and business processes you want to outsource, ensure that it is done with a focus on providing a greater product and experience for your customers and not only cost reduction.

We’re Awesome

At Awesome CX, we believe we are awesome at being a BPO company partner that works to be more than some company that provides a service for you and your customers, but an extension instead.

That means we prioritize customer satisfaction, transparency, affordability, enhanced customer experiences, and innovation. Customer care and customer experiences are our products — our core function — if you will. Because of that, we can elevate your customer experience business process to give you a competitive advantage and a lasting, loyal customer base.

Give us a call, connect with our social media or website, and let us join you on your journey to discover how awesome BPO can be!

Sources:

Business Process 101: Definition, Steps and Example [Guide for 2023] | Kissflow

Presbyterian to outsource physician recruitment | Albuquerque Journal

Is the offshore model the solution for Israeli tech’s chronic worker deficiencies | Ctech

Managing outsourced manufacturing in an age of disruption | E&T Magazine