Outsourcing business functions is on the rise. An increasing number of companies are choosing to outsource both core and non-core business processes to save money, enable scalability, and enjoy the many other benefits offered by outsourcing.
However, it can feel daunting to start developing an outsourcing strategy – even if you think that’s what’s best for your company. We’ve created this guide to make that processes easier on you.
Keep reading to learn more about how to make outsourcing decisions, the different types of services that are available, and tips for getting more out of your outsourcing strategy.
Should Your Company Outsource?
First thing’s first – should your company outsource one of its business functions or not? Here are three questions you can ask yourself to ensure you make the right decision.
How quickly are you growing?
Outsourcing business functions can be especially helpful for companies that are growing quickly. This is because it allows those businesses to scale up rapidly without having to hire too many employees right away.
If you aren’t growing quickly yet, then your outsourcing needs may not be as urgent. But you might still be able to save money or provide better service to customers by outsourcing.
How much time do you spend on non-core tasks?
As a business owner, you want to spend most of your time strategizing and overseeing the critical work of your employees. If you end up spending a lot of time on tasks that don’t feel like they’re driving value, those can be outsourced.
It can be helpful to review what you spend your time on throughout the day. If a lot of it is going toward things you feel others would be capable of accomplishing, that’s a significant sign that outsourcing may be right for you.
Do you need to save money?
Another question to ask if your expenses are currently too high. If so, outsourcing may be one way to lower them. It can free up your employees’ time to focus on tasks that bring more revenue back to your company as well.
Tips for Outsourcing Business Functions
Once you’ve made the decision to outsource one of our business functions, you’ll want to make sure that you get as much value from that decision as possible. Following these tips will help you do that.
Make Sure You Outsource the Right Functions
First, think carefully about the specific business functions that you choose to outsource. Just because functions like IT are commonly outsourced doesn’t necessarily mean that your company should outsource them as well.
It’s best to keep highly specialized work in house so that you can oversee them closely. But tasks like call center outsourcing, administration, and even HR can often be outsourced without much downside.
That being said, the best functions for your business to outsource will totally depend on its unique characteristics. This tip is just a reminder to consider those unique characteristics carefully and think about how they relate to outsourcing before committing.
Provide Feedback at Regular Intervals
You don’t have to be as hands-on with a business unit once you’ve outsourced it. But you still need to provide feedback at regular intervals to ensure that you’re working towards improvement at all times.
If you don’t provide feedback, then the leaders of the outsourced unit won’t fully understand where they need to improve to meet your expectations. The bottom line is that you’ll be setting yourself up for failure if you outsource a business process without also providing feedback regularly.
Be As Descriptive As Possible to Your Outsourced Teams
It’s also important to be highly descriptive when describing your expectations to the outsourced team. You won’t be there to answer questions on a daily basis, so you need to give the team as many answers as possible up front.
That means you should usually err on the side of being overly detailed about your goals, requirements, and evaluations. The more you talk about these things, the more focused the outsourced team will be while working toward your business goals.
Don’t Automatically Choose the Lowest Bid
Many companies choose to outsource because they want to save money. But that doesn’t mean you should automatically accept the lowest bid.
You’ll typically always get what you pay for when outsourcing. Spending a bit more may not be as good for your bottom line initially, but it could pay dividends over time by making your company more efficient and effective over the long run.
Don’t Sacrifice Quality No Matter What
Finally, when it comes to outsource, you have to prioritize quality over everything. You can’t allow slippage because it could deteriorate your brand, increase your costs, and seriously threaten your business.
This is why quality should always be the first priority when choosing what to outsource and who to outsource with. If you need help making sure that you find a quality solution to your outsourcing goal, the team at The Cattalyst is here to help.
Top Services That Contact Center BPO Provides
Contact center outsourcing is one of the most common kinds of outsourcing for businesses of all sizes.
This section covers some of the most common services that you can expect from this type of outsourcing to help you decide whether it’s right for your business as well.
Telephone answering services
Telephone answering services essentially answer customer phone calls and direct them to the appropriate party. It’s similar to the work that a traditional receptionist might do, but outsourced so you don’t have to hire any employees for the job.
Emergency or disaster response
You can also outsource your emergency or disaster response phone lines, if you work in an industry that needs them. Outsourcing this kind of response team can make it easier to provide all of the support that your customers may require on a 24/7 basis.
Customer support or troubleshooting
You can also outsource your customer support and troubleshooting team through a contact center. These are outsourced teams that answer customer phone calls and help to resolve the issues the customers have been experiencing.
Order taking and subscription renewals
In the past, many customers placed their orders for products and subscription renewals over the phone. The internet has replaced a lot of this. But if you still want to provide the option for your customers, an outsourced unit can be much easier than hiring employees for this purpose.
Appointment scheduling
Some small businesses also outsource their appointment scheduling. This is especially common for medical practices that want to keep their number of in-house employees relatively low. But it can be a fit for any company that’s constantly taking phone calls to schedule new appointments.
Debt collection
If your company delivers products in advance of full payment, then you might need debt collection services. There are many outsourced contact centers across the world that can do this job for you, so that you don’t have to maintain office space and equipment for an in-house debt collection team.
Telemarketing
There are also plenty of outsourcing solutions for telemarketing through contact centers. These outsourced workers will call lead lists on behalf of your company and try to sell your products to potential customers.
Webchat
Finally, modern outsourced contact centers are also capable of engaging with customers over webchat. This allows customers to get answers to their questions and solutions to their problems entirely online, instead of having to call for customer support over the phone.
Other Things to Know About Outsourcing Business Functions
There are more options for small businesses than ever
Many small business owners mistakenly believe that outsourcing is only for medium and large enterprises. Although that may have been true in the past, it’s not the case at all today. There are many micro-sized outsourcing opportunities available for small businesses with fewer needs.
You don’t have to commit to a long-term contract
It’s also important to keep in mind that you can typically find outsourcing firms that will work with you without an extremely long-term contract in place. This can be helpful if you’re not sure about outsourcing long-term, although you may have to pay extra for a month-to-month contract.
Outsourcing is available from more places than just East Asia
Many people think of East Asia when imagining where their outsourced labor will come from. But nowadays there are plenty of solutions available in South Africa, Eastern Europe, South America, and even The Carribbean. Each region has its own pros and cons that are worth evaluating before making a final decision.
Get in Touch with The Cattalyst For Help Creating Your Company’s Ideal Outsourcing Plan
We’ve covered a lot of information about outsourcing business functions. But there’s so much to learn about this industry. If you still need help coming up with your company’s ideal outsourcing solution, The Cattalyst is here to help.
We have decades of outsourcing experience and relationships with the top outsourcing firms across the planet. You can reach out to us for a free consultation to learn more about how we can help your firm take full advantage of the outsourcing revolution