Even in the pre-COVID world, businesses (especially the small and mid-sized ones) are constantly looking to decrease cost using cost-effective business strategies. One of the most famous techniques is outsourcing to a business process outsourcing (BPO) provider, particularly outsourcing offshore.
What is outsourcing
Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity that is or could be done internally, and sometimes involves transferring employees and tasks or processes. Some BPO providers focus on a specific business function like IT, accounting, marketing, and customer service. However, most providers accommodate different business processes across a range of industries.
Additionally, business owners and operators interchangeably use the terms outsourcing and offshoring. This is partly because a lot of terms and jargon are being thrown around networks, and partly because the two are closely related and often come together. (Related: Is lifting and shifting offshore really going to help you transform?)
How BPOs can help decrease costs
Business growth with minimal cost is the primary goal for any owner looking to accelerate their business in the ever-changing landscape of their industries. Large and small businesses alike take cost savings seriously to attain sustainability, and BPOs have been in the game of giving exactly this.
Here are the concrete ways BPOs/outsourced service providers can help businesses save on cost:
Existing tech capabilities
Outsourcing to BPOs lets businesses tap into existing tech capabilities without having to spend another cent. Outsourced service providers are in a constant race towards the smartest technology in the market so businesses looking to outsource can be assured that their business operations are done in the most efficient way possible. As a result, business owners can confidently compete through focusing on adding value to their customers, thanks to tech.
Outsourcing (offshore, in particular) enables businesses to run outside the usual office hours, thus catering to customers any time of the day. This is a great opportunity for all businesses looking to expand accessibility especially at this time of everything going online.
Offshore talent is more likely to come in to work at nighttime to keep their client’s business running. This kind of round-the-clock support costs surprisingly high when done in-house, accounting for the cost of electricity, equipment, and night differentials for employees. When outsourced, however, all these costs are bundled into one model that allows you to work well within your budget or even reduce your current after hours demand costs.
Less security costs
Information security is one of the primary concerns when talking about outsourcing. The threats of cybercrime are serious, and damage done may be irreversible. Fortunately, because BPO companies have already established protocols and security measures (that includes health standards) in place, business owners can confidently do business without worrying about threats that may affect their customers.
Investing in security systems may cost a lot more than what most business owners are willing to pay for. Outsourced service providers help remove this extra cost.
Equally qualified talent
Hiring qualified talent onshore come with high market rate salaries and packages. This is one of the most common reasons why business owners look at outsourcing: to tap into equally qualified talent without costing them more than what they are willing to pay for. BPOs have established processes on talent acquisition to make sure clients (you!) get nothing but the best skill of the country.
One of the things BPO companies brag about is the culture of engagement and development to attract quality talent. Office set ups (at least pre-COVID) include spaces for chilling and socialising. Regular engagement activities also help team members harmonize their work lives and personal interests. What’s the best in these is that businesses/clients do not get charged additional fees!
Management and reporting done for you
Keeping track of outcomes, milestones, and productivity would take up a lot of time and energy that could have been dedicated to growing the business, adding value to customers or servicing opportunity revenue. Outsourced service providers have the capability to deliver reports straight to clients’ inbox using tools that monitors and records KPIs, deliverables, attendance, and more. No need to invest too much just to stay updated.
What outsourcing truly cost
It is true that outsourcing is an effective cost-saving technique that even large companies take advantage of. Apart from the (minimal) fees needed to get started, the cost of outsourcing is commitment and patience. Much like in any new venture, transitioning and changing may prove to be difficult to handle because of adjustments both from the businesses and the BPO provider.
But with mutual trust, transparent & consistent communication, along with the right strategy and extensive experience, outsourcing to BPOs can make a huge difference to businesses and beyond.
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