Outsourcing: What You Do Not Know May Cost You More
If you are thinking about starting your own business, you have to decide whether you want to run the whole show or just focus on the core operations. Are you going to manage everything or delegate a few tasks to a partner or outside party? What you do not know about running a business may cost you your business.
The same thing is true with business process outsourcing (BPO), a strategy that involves a business, organization, or individual contracting out a process or operation to a BPO company or any third-party. Why would someone hand over their functions to an outside agency? Outsourcing helps businesses simplify the way they operate and gain the flexibility they need to survive in today’s very competitive, price-sensitive market.
Overall, outsourcing enables struggling businesses to save on operating costs and overhead, boost efficiency, fill gaps in manpower and resources, and improve service quality. These benefits are guaranteed, provided you properly determine if outsourcing is for your business, plus the process to delegate, and choose the right BPO company to partner with.
Outsourcing is the answer to your company’s staffing problems, operational inefficiency or technical inability, but it is not a remedy for any mismanagement on your part. You hand over processes, not problems, to BPO companies. For example, a call center company can manage your customer service and back office processes, but not salvage your reputation (unless they offer crisis management services).
A bad outsourcing deal can cost you more than any mismanagement in your company. Outsourcing problems often occur when you outsource the wrong things, neglect the outsourced task(s) for a long time or choose the wrong BPO company. It can also be attributed to your BPO partner’s negligence, poor training of your outsourced team, lack of regular updates, or a total disregard for performance standards.
You may have concerns about entrusting BPO companies with your business processes. You may be hesitant about working with strangers who operate abroad. Okay, you have doubts, but rest assured BPO companies can help and outsourcing is the way to go.
· Your business is not big enough to engage in outsourcing – No business is too big or too small to become efficient, customer-oriented, and service-oriented. BPO providers have solutions that suit all types and sizes of business.
· You do not know where to start – Maybe you are preoccupied with processes. Allow yourself time to decide what processes are important and what is not, what to keep, and what to outsource. Keep those processes that build your brand and let go of the others.
· You do not know how outsourcing can help you – How do you want your business to be? What do you want to achieve for your brand? Do you think there is a better way to manage a business?
· What are you outsourcing for? – What do you want to achieve from a partnership with a BPO company?
· You don’t know how to deal with an outsourced team – Consider BPO companies as potential business partners. You need to meet with your business associates and advisers, do you?
An outsourcing activity gone awry is as bad as your decline in sales. A bad outsourcing deal is as bad as any client you lost or an opportunity you miss.