You have the ability to excel in your business, provided you work smarter, not harder. An outsourcing strategy – which involves hiring third-party contractors to handle specific tasks, functions, or processes – is one major way to maximize your resources and results.
Many times, these can be done in-house, but this method allows a company to delegate to external experts so it is able to focus on its primary business goals.
Whether your company is a startup or has been operating for many years, business process outsourcing (BPO) can be an effective resource strategy.
Organizations that use this method are able to focus on their core competencies, reduce costs, and use specialized expertise without the overhead of hiring full-time employees. This guide discusses how this can benefit your business and how to stay relevant in today’s business landscape.
How an Outsource Strategy Gives You an Advantage
There are several reasons that make outsourcing a good business strategy. These methods serve as a roadmap to help companies stay on track with their objectives.
This can be beneficial to your company if you need access to specialized expertise so you can focus on your core functions. BPO can provide you with the valuable advantage of saving time and money.
A few other benefits to having an outsourcing strategy include:
- Seamless integration of new hires into the workplace environment.
- Reaching global markets that provide insights for scaling a business.
- Reduced costs for office space, equipment, technology, and other physical necessities.
- Improved innovation due to new perspectives, ideas, and expertise.
When you are able to use the time and money saved because of these methods, you are able to create and improve your products and services more effectively.
Businesses are able to scale more seamlessly to accommodate changing needs and avoid costs associated with hiring or downsizing teams.
Outsource strategies also manage risks by spreading responsibilities across multiple providers or geographic locations. These are spread across time zones and offer 24/7 support to customers.
If you want to stand out against your competition, improve customer satisfaction, and meet their needs more effectively, this is worth considering.
The access to specialized expertise also saves you time, which is one of the most valuable resources for any business. BPO minimizes the need to recruit, hire, house and equip, onboard, and train employees. This results in starting projects sooner and meeting project deadlines faster.
While there are many advantages to this business method, it is important to be aware of the potential challenges that come with it by evaluating your business needs, determining the scope of work, and coming up with an integration plan prior to implementing any plans.
The Origins of Outsourcing
The concept of using third-parties to meet certain business needs is not a modern idea. There have been many forms of this strategy utilized across various industries and have adapted over time.
The method was originally called “subcontracting”, which dates back as far back as the Industrial Revolution. This is when external services were used for needs like workshops, artisans, or niche specialties.
This method was adopted throughout many industries because it gave companies the opportunity to be more efficient and specialized while meeting compliance regulations. It also reduced costs and expanded the reach to customers to meet their demands.
Starting in the 1980s, external hiring became necessary for more complex functions as technology needs grew rapidly. The concepts of BPO and Knowledge Process Outsourcing (KPO) became more popular starting in the early 2000s.
Companies began to hire third-party services to handle non-core business processes like payroll, accounting, IT, manufacturing, and customer service. This is how outsourcing is most widely known today.
Key Considerations for Developing an Outsourcing Strategy
There are several factors to keep in mind as you choose an outsourcing strategy. In order for this method to be beneficial, it must align with your goals and needs. Hiring a contractor has its benefits, but you will need to examine if the risks outweigh the pros.
You also should consider working with a legal professional. They can help you write legally sound contracts that protect both parties.
It is essential to determine how a blueprint affects the growth, efficiency, and competitive advantage of your company. You also need to consider the long-term impact and its effects on company culture, operations, and reputation.
Case Studies of Successful Outsourcing Strategies
There are companies across various industries that have had success by using outsourcing services. There is a lot you can learn from brands like Apple, IBM, Proctor and Gamble, Google, and Ford AutoNation. All of them use third parties to help with specific services.
These companies chose to work with external experts for the same reasons that are discussed above: they did it to focus on their core objectives, save money, use strengths, and meet market demand.
These partnerships had a positive impact on functions like design, IT services, and operations. Because of this, it contributed to the success of the business. If you want to look to at a successful model to see if using third-party services can work for you, these brands are a good place to start.
Future BPO Trends
As the business landscape evolves, new trends are emerging. This means there is an increased necessity for an outsourcing strategy in most businesses.
The following are examples of ways you can utilize an outsourcing strategy for specific tasks.
Investing in AI and Advanced Analytics.
- As technology innovations evolve, they can handle tasks that gain insight into customer behavior, risk assessment, fraud detection, and personalize product and services offerings. These details are crucial to the growth and success of your business.
Prioritizing Customer Service.
- Focusing on customer experience is a business necessity. Customer service functions like chatbots and virtual assistants offer 24/7 customer service support to increase customer satisfaction, even outside of operating hours.
Developing Remote Work Opportunities.
- Increasing demand for work-life balance from employees means it is necessary to create IT infrastructure and disaster recovery solutions.
Using an Experienced and Successful Outsourcing Strategy to Benefit Your Business
Your businesses can grow and stay relevant with high-quality service and decreased operational costs. One of the best investments you can make is with an outsourcing strategy.
Confie BPO helps with outsourcing needs for customer service success. We offer these services across various industries that can help you radically scale your contact center operations.