Have you ever considered if you need to outsource a few tasks outside your business? If you did, chances are you also considered moving entire business processes. You likely tried to outsource them.
It’s hard to question the benefits that this can give you, especially if you’re a small business. Business process outsourcing is more than $100 billion a year market in 2012.
It only grew bigger ever since.
If you’re a small business or looking to cut down costs, here’s the truth. The advantages of outsourcing are more than enough for your needs.
In this guide, we give you all the benefits of outsourcing your business processes to others. All these outsourcing benefits can help convince you that this is the right move.
1. Provides higher expertise
You may have a core team of people that you trust to do the work, and that’s ok. They know how to do the job and they’re likely experts in the field. Among the many outsourcing benefits, the most obvious is an improvement in expertise.
By outsourcing to other companies, you get a strong performance boost. You get this by having more people do the job, breaking it down into simpler tasks.
Many BPO teams will have experts in the field working with other companies. They will know how to deal with your specific problems. They will then apply the solutions they learned with other teams.
This then frees up the people you trust within the company to do better roles.
2. Corrects business weaknesses
One of the benefits of outsourcing is focus. You get a focused team of people handling specific processes.
You won’t need do-it-all rockstar employees handling different kinds of work. You instead get to have a team who is concentrating on improving a single process.
How is this good for your business?
For starters, not all businesses have issues in different processes. Some are great at handling customers while others have stellar technical expertise.
On the flip side, these businesses can have different issues. Some will have weaknesses like handling technical problems or customer support.
By outsourcing specific processes overwhelming your team, here’s what you get. You get to focus on what you’re good at.
The BPO team can also improve the weaknesses of the business itself. These outsourcing benefits are undeniable.
3. Superior cost savings
Among the most obvious outsourcing benefits out there is a lower cost. Outsourcing tasks outside your business can provide superior cost savings. You can do the job at a much lower cost and likely at the same or better total quality of service.
Depending on where and how outsourcing happens, you can save much money. For example, if the outsourcing moves to a company in the Philippines, you can save up to 40% in costs. Salary discrepancies allow this to happen, getting the same number experts for less.
While you need to be wary of which countries you move your processes to, this will help you get better support. Low cost does not always equate to low quality. All you need is to make sure that you’re working with a reputable BPO service company.
4. Better business efficiency
One of the benefits of outsourcing that people love about it is efficiency. Companies in the BPO industry reward teams that provide the best efficiency.
Metrics and key performance indicators are the name of the game. BPO companies make sure to squeeze as much from their teams.
One of the ways that outsourcing companies improve efficiency is handling tasks with a larger team. If you have a process with complications but needs a larger team to maximize its potential, you need outsourcing.
On the flip side, you can also outsource menial and repetitive elements of your business. Customer service is a job that almost nobody wants to do. If you do it in-house, it can tie up crucial members of your team that should be doing something else.
By moving this important, albeit menial, task to an outsourcing company, you get to do more things. The sheer size of BPO teams is enough to magnify outsourcing benefits many times over.
5. Mitigates risk
One of the benefits of outsourcing is that it helps mitigate your risk. Certain tasks are risky and can tie up much of your business funds. By sharing the risk with an external party, you relieve your business of such risk and build a strong partnership.
How does outsourcing mitigate risks? What are the advantages of outsourcing when it comes to risk reduction?
Some businesses do not have massive infrastructures that can handle heavy workloads. Some companies, for example, might need their own data centers to handle their customer service. This is not an upfront risk you are willing to take.
By dividing this risk between you and the outsourcing company, the burden on your business is lighter. Many outsourcing teams will have their own data centers and a fleet of people on standby. This can handle massive undertakings that you can’t tie your money with.
6. Prevents excess hiring
When you outsource jobs and tasks outside, you likely work with a contractor or create a contract with a business. This is great, as it prevents you from having to hire more employees to your business. This also saves you money in the long run.
Every employee will have different needs according to their position. The costs don’t stop at the salary. You need to provide benefits, health insurance, a 401k, and even training.
One of the top outsourcing benefits of contracting is you never need to pay for any of these. The contracting company will handle these for you.
The Advantages of outsourcing are undeniable
The advantages of outsourcing are hard to deny. From lowering your cost, cutting down your workload to improving your processes, this is right for you. If you’re looking to improve on some processes or free up your team, outsourcing is the right move.
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