Outsourcing Benefits

There are numerous benefits to outsourcing weak points in your company to experts highly trained and equipped to handle them, such as customer service or information technologies. Let’s briefly discuss a few of them.

Four Benefits of Outsourcing: Overview

• Decreased operating costs
• Access to global talent
• Enhanced customer experience
• Creates space for innovation

Decreased Operating Costs

Outsourcing new projects or struggling services to companies who specialize in those fields help you decrease costs and reallocate your existing workforce resources. Reduced operating costs open the doors to increased spending on product and service development.

For example, if you plan to implement a new digital technology infrastructure to accommodate growing online demand for your company, the cost will be sky-high. Instead of spending your capital on new equipment and hiring IT experts, you could outsource to a partner company with the necessary equipment and employees already in place for a fraction of the cost. 

Access to Global Talent

The recent COVID pandemic has reshaped the landscape of offices. When government restrictions forced workers to stay home, companies had to adapt by moving employees to remote workspaces. Although the remote work revolution was well underway already, the pandemic drastically accelerated its adaptation. 

Companies outsource many services, including website design, marketing, graphic art design, customer service, inbound and outbound calling, and information technology, requiring highly specialized skills. Outsourcing can give you access to employees with these skills worldwide. 

Enhanced Customer Experience

Customer service is the cornerstone of nearly any profession or trade. From law enforcement to restaurants, the customer experience is paramount to success. However, many companies struggle to provide quality customer service or accommodate customer demands due to rapid and unexpected growth. 

Outsourcing customer service to a trusted partner specializing in providing it can mean the difference between upward success and declining sales. 

Creates Space for Innovation

To remain successful and competitive long-term, your company must continue to innovate your product or service. Outsourcing your weak points allows you to focus on your strengths. We call this Smartsourcing. In other words, outsourcing your weakness gives you the space to build upon your strengths and innovate what makes you great. 

The Flip Side

As is always the case, there are also drawbacks to outsourcing. Understanding the pros and cons of outsourcing is equally crucial for your preparations. Your employees need to know why you outsource and how it will impact them. Being open and honest about these consequences will minimize the impact on your employees.

Three Drawbacks to Outsourcing: Overview 

• Loss of control
• Reduced managerial oversight
• Workforce disruptions

Loss of Control

It is no secret that outsourcing a department or service to another company will come with the consequence of control loss. You will have limited input on who is hired or assigned to work your contract, what equipment or software is used, or how they are trained. This is the most disliked aspect of outsourcing, but with diligent planning and research, you can find the right partner that mitigates this concern.

Reduced Managerial Oversight

Losing the ability to choose managers is very relatable to loss of control, and the two go hand-in-hand. When your outsourced department is kept in-house, you can choose who will manage it and make changes when necessary if performance falls or expectations are not met. You essentially lose this oversight once it is outsourced.

Workforce Disruptions

Workforce disruptions are the most impactful on your employees and their families. Sometimes companies do not realize the need to outsource until after they have hired additional employees to help the struggling department. You have two choices when you outsource that department: reallocate or terminate. 

Termination is the most drastic, but both negatively impact your employees and workplace morale. Although reallocation may seem like the better option for your employees, it could be almost as bad as termination.

For instance, if you hired an expert in website development and then outsourced that department, finding a job within your company that is suitable for their skills will be challenging. This disruption will severely impact their mental welfare and likely lead to them looking for employment elsewhere. 

How To Prepare 

With this knowledge, you can better prepare your company and employees for outsourcing. An adage says Poor Preparation Produces Poor Performance and these are some of the wisest words ever spoken. You are making a big decision to outsource, so don’t compromise your chances for success by ignoring the preparation stage.

Five Steps To Prepare

• Be honest
• Incorporate employees in the decision-making process
• Choose wisely
• Don’t be in a rush
• Paint the picture 

Be Honest

We put this step first because it is the most important. Be honest with your employees about what you plan to do, why it will be beneficial, and how it will impact them. The latter can be a difficult conversation to have, but it must be had. 

Some people prefer the good news first, but most choose the bad news first. Which you give first is up to you, but don’t sugarcoat the negatives, and don’t dress up the positives. Explain why outsourcing the service is necessary to the company's long-term goals and growth and how you plan to adapt to the changes.

Incorporate Employees in the Decision-Making Process

Being honest with your employees is the first and most crucial step to take, and including them in the decision-making process is a vital second step. Giving your employees access and input to your strategic planning means they have ownership in the process.

This ownership will alleviate some of the growing pains that will inevitably come from the new changes about to take place and demonstrate your commitment to keeping their concerns and interests a top priority. 

Choose Wisely

Like anything else, there are countless options for you to choose from when deciding who to outsource to. Do your research and ensure that the company you partner with has a history of providing top services with the least amount of loss control possible. 

Don’t Be in a Rush

To choose wisely, you must also not be in a rush. Outsourcing is one of the most significant decisions you will make for your company, so do not place yourself in a position to be forced to choose a partner quickly. Quick decision-making without research or preparation is doomed for failure and further complications. 

Paint the Picture

Painting the picture is a culmination of the first four steps. Draw out your outsourcing plans, whether you paint the picture, create a PowerPoint, or use old-fashioned chalk on a chalkboard. 

List the pros and cons, be honest about its impact on your company, list feedback from your employees, list your outsourcing partner prospects shortlist, and create a goal and implementation timeline. 

Once you have created your flow chart, graph, list, painted your picture, or completed your project planning report, it’s time to step back and take a breath. Go over your plans again. Revisit areas of great concern. Ensure you have chosen the best path forward.

The Five P’s

We mentioned earlier that poor preparation produces poor performance, and prioritizing practice produces positive performance. If you plan to outsource a function of your company, be sure to apply the wisdom of the Five P’s. Preparation is paramount to success. You are not preparing leads to disaster.

Next Steps

We have mentioned several times in this article that choosing the right partner for your outsourcing needs is paramount to mitigating the negative connotations of outsourcing.

At Awesome CX we specialize in enhancing the customer’s experience with your company by providing excellent customer service and digital solutions. We recognize that losing control of your outsourcing service is one of your most significant concerns.

We prioritize assigning a team dedicated to your company with a laser-focused purpose to be an extension of your company's culture and mission to ensure consistency.

We don’t like costly surprises, and neither do you. We have built our services with upfront, all-inclusive, and straightforward pricing that can be arranged on a month-to-month basis to give you peace of mind in choosing us as your partner.

Contact us today to connect with a team member and discover why countless companies have chosen us as their trusted customer experience outsourcing partner.

Sources:

COVID-19 Pandemic Continues To Reshape Work in America | Pew Research Center

The Pros And Cons Of Outsourcing | Forbes

Outsourcing: Advantages and Disadvantages | Indeed