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5 Things to Know Before You Outsource Your Business Processes


In today’s business space, executives are in constant search of ways to build better business processes. One of the things that business owners have found to be very effective in achieving great results is outsourcing. Outsourcing not only saves time and money but also brings fast and efficient results. As it stands, to be an effective executive in this fast-changing world, incorporating outsourcing as a part of your overall strategy is worth considering.



Business Processing Outsourcing is very popular in today's society. Here's a break down of what you need to know about it.


Meaning of business process outsourcing


Business process outsourcing (BPO) requires you to contract someone outside your organization to execute one or more tasks. It could be that the third-party service provider has more experience or better tools to deliver more efficient service at the time.

It could also be that the workload is too high for you and your employees at the moment, and you need temporary external assistance. Specialized services such as accounting, marketing, IT, customer support, and software development are some of the most common business process outsourcing examples.


Benefits of outsourcing business processes


Many advantages could come from outsourcing business processes. One of these benefits is time management. You may require the delivery of a particularly difficult task that could consume much time and demand concentration. It could also be that doing it yourself or involving an employee would disrupt the normal flow of the organizational process. A third party will be necessary for a more efficient business process execution in a case like this.


Another benefit of engaging the services of a third-party service provider is efficiency. In many instances, third-party workers have more optimized tools and are better trained to provide a specific task. Instead of allowing yourself or your staff to go through a trial and error process, you can outsource. That way, you save your company the unnecessary waste of time, money, and resources.


Business process outsourcing could also grant you organizational flexibility. There could be times or seasons your company would need a few more hands for more efficient service delivery. At such times, temporarily engaging a third-party service provider can eliminate the complexity of permanently expanding your workforce. This would save you the cost of keeping the excess number of personnel in your team all year round.


Here Are 5 Things You Need to Know Before Outsourcing Business Processes


Define your goals

Before outsourcing business processes, ask yourself the following questions.

  • What exactly should I expect from the third-party service provider?

  • How long do I expect this service to last?

  • Does my business have enough resources to handle the payment for these extra services and for this length of time?

Extracting the right answers to those questions will help you to avoid errors and delays.


Outsource nearshore instead of offshore


Outsourcing nearshore means you are engaging the services of a third-party provider located in a nearby country. Outsourcing offshore implies hiring a provider that is located in any other country, near or far. If you desire a more efficient delivery, you may consider nearshoring instead of offshoring.

Outsourcing your business operations nearshore offers some benefits such as time zone compatibility, more seamless communication, and shorter flight hours. Other benefits include fewer cultural barriers, more compatibility in language, and higher chances of currency match.


In a case of dispute, it is much easier to address legal issues nearshore rather than offshore. If your presence is needed for project supervision, dealing nearshore will surely be a better option than dealing offshore.


Evaluate the cost structure


One of the major benefits of outsourcing business processes is that you could pay less for greater efficiency. You have to evaluate the required service and compare it with the expected time of delivery. Are you going to pay hourly, weekly, or monthly? You must identify and factor in all the hidden charges and time lapses that might occur.


Making adequate provision for circumstantial differences ahead of time would help you prepare for any surprises that might occur. It would also help you to make an appropriate bid for the tasks you expect to be done. Summing up, these factors could grant you a soft landing if the need arises in the course of outsourcing.


Assess the level of expertise


Assess your third-party service provider’s level of expertise and experience before engaging their services. Remember, one of your major goals for outsourcing is to get quality service at a reduced cost.


If it is a new project, research your options. Do background checks on them and find out about their past service delivery efficiency. A good service provider should be able to deliver your immediate request. But they should also be willing to give helpful suggestions for future improvement or avoidance of error.


For instance, you may need your company’s internal network system to be debugged. Beyond fixing the problem, the IT technician you hire should be able to tell you the steps to take to avoid a repeat occurrence.


Consider your privacy


It might interest you to know that outsourcing also comes with some level of risk. By outsourcing certain aspects of your business operation to a third party, you give them access to your organization’s information.


Although most service providers operate with a high level of decency, there could be that one black sheep in the flock. Failure to provide adequate checks for a scenario like this could harm your business. If your provider will have access to your company’s internal information, get them to sign a non-disclosure agreement (NDA) beforehand. This could save your company from hurt.


Outsourcing is an excellent business management tool, especially in these days of the digital economy. Efficiency, fast delivery, flexibility, and reduced cost, are a few of what business process outsourcing could do for your company. However, to get the right results, you must plan and research extensively before outsourcing any aspect of your business operation.




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