The business world does not do anyone any favour, therefore, as a company, an entrepreneur, you must always be careful and alert. To optimise your organization, your resources or your finances, there is a solution that can be accessed by all types of companies. This is outsourcing, also referred to as Business Process Outsourcing (BPO).
In general, outsourcing consists of procuring the services of a specialized person or company, located in the customer’s country or abroad (offshore), in order for the latter to take over a service or an offer. Outsourcing has become a common business practice that allows companies to acquire services and skills that they would generally struggle to develop, due to financial or human restrictions, or even a combination of both. Concretely, this solution allows a company to focus on its core business and its development, without having to make major investments. It also saves the firm from having to deal with all the administrative hassles that are involved in hiring employees.
To summarise, outsourcing adapts to the vision and objectives of the companies that use it. Faced with the quality offered today by offshore outsourcing specialists, this solution has become a central element of business strategies, including when companies are going through a complex period. Convenient to save money, it also helps to preserve the quality of its customers’ services, their image and the satisfaction of their customers.
Why does outsourcing cater to your business?
There are many reasons for taking a very close interest in outsourcing, which could be defined as “the strategic use of external resources entrusted with activities traditionally managed by employees and internal resources”. Thus, by entrusting one or more services to outsourcing, the consequences are many:
- Reduction and control of operating costs (the largest driver),
- Improved business orientation,
- Access to technology and quality knowledge,
- Release of internal resources for other purposes,
- Streamlining or increasing the efficiency of time-consuming functions,
- Maximising the use of external resources,
- Share risks with a partner company.
The financial factor: according to a survey conducted by the London School of Economics (LSE), almost 70% of companies opt for outsourcing in order to reduce their costs. As a business, profitability is the most important factor in your balance sheet. To achieve this, you need to offer a quality product or service, but at a lower cost.
New skills: outsourcing eliminates the various factors that plague training and recruitment. By carefully choosing your provider, the feedback of its current and previous customers, the quality of the projects it conducts, you will find a partner capable of providing you with a qualified workforce at a very low cost.
Time saving: Since they have more experience, companies specialising in outsourcing are able to offer balanced services in terms of costs and deadlines. More clearly, your provider will be able to deliver its services according to your deadlines without compromising quality. In addition, it will offer flexible schedules, making your business accessible outside of its usual hours of operation.
Faster and better services: with the advent of IT and digital technology, outsourcing providers are now able to quickly deliver the best services.
Increased efficiency and flexibility: in order for your business to grow, it needs to work twice as much during business hours. Increase your productivity thanks to a service provider that is able to assist you on your projects.
Your core business: outsourcing allows companies to focus on their core business. The time saved allows each department to focus on its main mission. Outsourcing reduces operational workload!
Business continuity and risk management: high turnover can lead to uncertainty and inconsistency. Outsourcing offers the company the guarantee of business continuity.
The essential factors to consider in order to succeed in your outsourcing project
Outsourcing can be effective, provided that you have concrete solutions for the issues that this solution could bring within your company. To effectively manage each stage of your project, the following points need to be clarified:
- Negative feelings or lack of consideration on the part of existing staff,
- Retention of existing staff,
- Improving the quality of products / services that may be problematic,
- Improved communication with outsourcing provider teams (language, time zones),
- Procedure for maintaining control over policies and procedures,
- Improved data security
Containment and outsourcing: internet, a winning tool for your business
If outsourcing is not new, this solution demonstrates its increased efficiency with the advent of the internet. Indeed, thanks to the web and dematerialization, outsourcing takes on an even more interesting dimension, since it allows businesses to continue its activity, including, during this period of containment.
Providers are sufficiently equipped to allow their human resources to continue their activities in a transparent manner. As for the costs, they remain the same since this type of service falls within the framework of business continuity in times of health disasters.
Offshore outsourcing is a solution for all companies that want to continue to satisfy their customers while focusing on their core business. Economical and practical, it is able to adapt to any situation, including if your company must continue to operate in complex situations, as is currently the case with the Covid-19.