(BPO) Business process outsourcing is a good option for companies looking to streamline their processes, increase productivity, and profitability. In line with this, outsourcing service providers perform your back office jobs as well as Information technology tasks effectively in quick turnaround times. This kind of business partnership can provide the benefits of overhead cost reduction, increase in productivity, and better quality work. However, there are also some drawbacks if the tasks are not outsourced to the right BPO service provider. Therefore, prior to outsourcing your back office jobs or other services, it is essential that you fully understand the advantages and disadvantages of business process outsourcing.
Advantages and Disadvantages of Outsourcing
Outsourcing is the process of allocating a specific business process to an external service provider. If an organization cannot handle some aspects of their business process internally, outsourcing is a good option. Specific processes may be temporarily or permanently outsourced so they don’t need to hire in-house professionals to perform specific tasks.
When the task is outsourced to a service provider, they must take full responsibility for carrying out the specific tasks whilst maintaining the company’s assets.
Outsourcing is also known as offshoring, and yes just like the most of the things, it has pros and cons to it. And most of the time, the advantages of outsourcing overshadow its disadvantages.
Speed and Expertise: The tasks or jobs outsourced to vendors who specialize in their field have specific equipment and technical expertise required. And most of the time, employees from outsourcing service provider perform better than the ones at the outsourcing organization. They tend to effectively carry out the tasks faster and with better quality output.
Focus on Core Processes: When companies outsource some of their services or back office jobs, they’d be able to concentrate on their core processes. Outsourcing supporting processes can give any organization more time to focus on their core business processes.
Risk-sharing: Outsourcing specific components of your business processes can help you shift certain tasks to the outsourced vendor. Since the outsourced vendor is an expert in their field, they could plan your business’ risk-mitigating factors better.
Reduced Costs: When you outsource, you save a lot of money on recruitment,
infrastructure, and operational costs. It eludes the need to hire employees in-house; hence infrastructure, recruitment, and operational costs can be minimized to a great extent. This is one of the main advantages of outsourcing or offshoring.
Exposing confidential data: When you outsource your HR, Payroll, and Recruitment services, there is a certain risk involved as you’d be exposing confidential company information to a third-party provider or company.
Hidden costs: Outsourcing is cost-effective but there are hidden costs involved in it. So before signing a contract, make sure to read the fine print as signing a contract across international boundaries may pose a serious threat.
Absence or Lack of Customer Focus: Outsourcing service providers cater to the expertise needs of multiple organizations at a time. In some cases, they may lack complete focus on your company’s tasks.
All these advantages and disadvantages of outsourcing must be considered before you actually approach a service provider. You must specifically determine the importance of the tasks that you plan to outsource. It is always beneficial for any company to consider the pros and cons of offshoring before actually outsourcing it.
Here are some of the most commonly outsourced streams of business:
- IT Outsourcing
- Legal Outsourcing
- Web Development
- Web Design & Maintenance
- Customer Service Support
- Technical Support
Key indicators Why You Need to Outsource
- Lack of talent pool in some areas of the business process
- Availability of cheaper labor to reduce cost
- Feasibility to concentrate on core business processes
These are the common indicators why most companies decide to partner with outsourcing providers across different locations in the world. Expertise in IT, communication, and favorable financial packages are the most important factors of outsourcing to Philippines, India, or China.
Requirements are unique and our team at Origo BPO understands, appreciates, and respects this. Thus, we plan and make sure that our implementation processes are suited for our clients. We constantly look at ways in which you can save more time and money.
We also analyze the current processes in your organization with our reliable and highly skilled business analysts. This allows us to improve your service and increase your sales.
We also conduct business process mapping so you’d be more efficient. This provides us a clear process map so we’d be able to observe how and where improvements can be made to the current business processes that you have.
Origo BPO’s Four-Step Process
Through our four-step process, we provide a systematic approach to help you. This streamlined process is convenient and cost efficient and allows us to manage our agreed goals at any given timeline.
Understanding business and goals
Our team invests time and effort in business research so we’d thoroughly understand your business. We work hand in hand with you in identifying the current Key Performance Indicators (KPI) to make sure that the best practice is achieved.
We take the time to research on all the detailed specification of the jobs you wish to move offshore or outsource. We also specify and list down all the boundaries of these tasks. We document your current processes so we’d be able to create the best business model to ensure productivity and quality of work.
Hire and Train
After finalizing all of your business requirements, our team will find the best employees for the job. Part of our recruitment process includes examinations and interviews to fully gauge their knowledge base and skills. We also perform extensive background checks to make sure that we only hire the cream of the crops in the industry. We also develop and train our people so they’d be able to deliver exemplary service.
We supervise your contracted employees. We make sure that all the requirements and performance standards are met at all times. You’ll be kept up to date on daily activities through our business reports regarding your offshore team’s work ethics, quality, and productivity.
Take home the offshore advantage with Origo BPO – your ideal outsourcing partner!
Feel free to contact us so you’ll find out more about how we can help your business thrive and maintain a competitive edge.