“The important thing about outsourcing or global sourcing is that it becomes a very powerful tool to leverage talent, improve productivity, and reduce work cycles.” ~ Ajit Premji, Chairman, WIPRO.
Running a business is extraordinarily strenuous. You have a lot on your plate to manage. As such, complexities are unavoidable. Strategizing and planning can help you run your business smoothly. And a critical aspect of a successful business strategy is OUTSOURCING.
In the last ten years, more and more companies have turned to outsourcing to save money, expand their options, find skilled workers worldwide, and make more money. In fact, there has been a 5.4% increase in business process outsourcing in the United States itself.
But why is the global outsourcing industry booming? How outsourcing can help your business? That is because businesses can overcome even their most complex challenges with outsourcing easily.
Read on to know the top challenges you can overcome by outsourcing business process services.
5 Common business challenges that outsourcing can solve
1. Higher operational costs impact the overall budget
Outsourcing has become more and more common lately when it comes to cost efficiency. It may not always be perfect, but if you want to save money and make your back-office work better, it could be exactly what you need.
One of the many benefits of outsourcing is that it usually costs less to hire human resources solutions from an outside company than to hire staff members domestically. This means businesses can save money on payroll and don’t have to pay for healthcare coverage directly. That’s because such expenses are taken care of by the outsourcing company.
2. Lack of expertise
When you have more clients coming in, it’s likely that you will need to expand the project scope. If your staff doesn’t have the right skills, they might not be able to perform specific tasks that require special expertise.
Luckily, outsourcing gets rid of the need to find and train new employees. In addition to giving your company access to talented people who aren’t already working for you, it also helps you save money on hiring and training expenses.
All you have to do is tell your outsourcing partner what skills you need for your business, and they will provide you with well-trained staff from another location that meets your needs.
3. Difficulty focusing on important tasks
Cash-starved start-ups often take on too much to save money and be more efficient. This might seem like a good idea, but it actually hurts their ability to move quickly and accomplish significant goals in a short amount of time.
Start-up companies usually create their business based on a special technology or a unique way of solving problems. This requires a lot of concentration and hard work. To ensure they can focus more on improving their technology or refining their processes, start-up founders can hire other companies to handle less important tasks. These may include tasks like finding potential customers and marketing their products.
4. Keeping up with business changes
Even though the world is constantly changing, one thing that remains the same is what customers want and expect. People still want high-quality products and excellent customer service, and this desire has actually grown stronger.
When there are disruptions and unpredictable changes happening in the business and market, organizations find it challenging to manage to adapt and stay relevant.
As such, making the right technology investments can create a strong base for companies. By using these tools correctly and combining them effectively, they can make the current difficulties easier to handle and safeguard businesses from future disruptions. Hiring a third party who could provide such tools can be cost-saving and fruitful in keeping up with the market and business changes.
5. Automating team management
Successful organizations believe in having a clear way of doing things for everything they do. They use carefully planned processes to accomplish their daily tasks efficiently. Whether it’s hiring new employees, training them, or managing responsibilities, they have well-defined steps to handle all these tasks.
However, hiring the perfect employee, ensuring effective training, and reducing attrition aren’t easy to manage in-house. All these are hectic tasks and need a lot of time.
By outsourcing, organizations can easily hire, train, and oversee employees without any worries. BPO companies have the necessary skills and connections with both new and experienced individuals who possess the required skills. This makes the process of hiring and training much simpler.
6. Security risks
Companies face various problems due to the large amount of information they handle, including concerns about data security. Unfortunately, finding and implementing advanced security solutions is not easy.
That’s where an outsourcing partner can be helpful. They can assist businesses in identifying vulnerabilities and integrating superior cybersecurity measures to safeguard their data from cyber threats. Moreover, outsourcing cybersecurity tasks is also cost-effective compared to building and maintaining an in-house cybersecurity team, which requires substantial financial investment.
The Takeaway
Whether your business is facing difficulty managing operational costs, increasing productivity or enforcing security, outsourcing can help you. It’s a smart way to save money without compromising on quality. Work together with a business process services outsourcing company to expand your business. They will assist you in creating and overseeing a specialized team located overseas that acts as an additional part of your company.
