Lately, there has been so much of buzz around every second company wanting to outsource their business processes to third-party companies. But, do you know what exactly outsourcing means?Outsourcing or BPO (Business Process Outsourcing) is basically a process where an organization hires another company or individual to handle the business activities on behalf of them. You can choose to either hire domestically or internationally. Outsourcing has grown to become a very common business practice that enables businesses, especially small and medium companies, gain skills and services that they would normally find difficult to develop because they may either be financially weak or have some sort of manpower restrictions. It may also be the combination of both. Time and again, outsourcing has proved very profitable for companies of varied size. For organizations that want to grow their business when they want to without any such major investment, outsourcing is the best solution.
Want to know more about BPO outsourcing? It can allow you to lay emphasis on the core competencies of your business, enhance efficiency and cut down costs. You can do all this and more without any hassle.
Take a look below to become privy with some of the compelling reasons why you should think about outsourcing too. Here we go…
More availability of resources for carrying out core business processes
One of the biggest benefits of outsourcing is savings. Businesses are able to free up a considerable amount of the company’s funds that they can make better use of to manage other important functions and processes of the business. If you really want to take your company to the next level, you need to significantly invest in new equipment, brand new advertising campaign, renovating the facilities by integrating state-of-the-art technologies, researching and gathering intel on brand new products or services and more. By having ample capital to strengthen the other processes of your business, you will be able to stand out from your competition.
Lower cost of wages
Without a doubt, one of the most important and powerful reasons that companies prefer to outsource is financial. As mentioned before, you will be able to save up on a lot of resources. But, that’s not all. You will also be saving significantly by not having to invest in expensive recruitment and training process. If you think practically, it costs a lot less to pay for the wages of employees from a foreign or offshore country than to pay for employees of one’s own country, especially if you are outsourcing to the developing nations, such as Singapore and India. Also, you do not have to invest your time and money in conducting really long and thorough hiring processes. The companies you decide to outsource operations to will already have everything in place.
Access to world-class capabilities
BPO service providers work with a team of highly-skilled, experienced and talented professionals who have the knowledge and expertise required to successfully carryout the tasks assigned to them. They do not need any special or extra training to understand your needs and deliver you measurable results. Since this is what they are recruited for, they will be able to handle all your business needs effectively and with great competency. With access to such a talented team, you will never have to worry about a part of running your business. You can simply let the BPO service provider know about your specific requirements. In most cases, BPOs provide bespoke packages and solutions so that you can gain complete peace of mind.
Furthermore, BPOs will be able to provide you with skilled and highly educated people who have individualized skill-sets. No matter what process you wish to outsource, BPOs are going to have the right people for completing the job. You can be sure that your processes are going to be taken care of by experts.
A company to share risks with
Launching a new product or service is always a gamble. It can either be a huge hit or a big flop. Now, if you have hired contracted or salaried employees, you will have to pay them their wages, no matter what. This means that you will have to spend a lot of money, even if the new products or services do not bring you any profit. However, if you choose to outsource, the risk is going to minimize or be completely eliminated. You do not have to worry about paying wages and you can always ask the outsourcing service provider to discontinue, whenever you want.
Free up time for the internal team to concentrate on what they do best
If employees with a particular set of skills are given the freedom to do what they are capable of or what they have taken professional training in, it is going to boost productivity at work. Eventually, better productivity is going to help the company to grow and achieve success.
So, now that you know the top 5 reasons why companies prefer to outsource some of their business functions and operations, what have you decided? And don’t worry, these are not the only reasons why outsourcing is good for the health and success of your business. There are also several other reasons, such as faster turnaround time, tax benefits, faster time to capture the market, elimination of uncertainty about business or political climate, better results in less time, contractual certainty and so on. As you begin to work with a BPO, you will be able to unlock numerous opportunities and advantages for your business.
Have you ever worked with an outsourcing service provider? Which country do you prefer to work with? Do you have any tips for new businesses owners who are still on the fence with the whole outsourcing topic? If you have anything to add or share, please feel free to provide your valuable suggestions in the comments section below.