Pros and Cons of Hiring an Outsourcing Company

It is said that little knowledge is a dangerous thing. Today, everybody is aware of business process outsourcing and outsourcing companies. While some of us blindly want to outsource all of our business processes, some of us are afraid of outsourcing even a part of it. These hesitations or extra faith is due to an incomplete knowledge that we have about outsourcing.

Undoubtedly, outsourcing is a very good option for your business but what kind of outsourcing should you go for while considering the nature of the business you’re running is more important. Therefore, we must know and understand it’s both aspects so that business can be run successfully.

Pros of hiring Outsourcing companies:

Let’s get started with some of the benefits that outsourcing companies offer:

  • Cost effective services:

Hiring BPO services are cheaper than setting up an in-house call centre which will require an additional office space, hiring and training of new staffs and purchasing new tools and equipment for the same. Whereas, a service provider contains all these entities at the centre and works for you at a lower cost.

  • Proficient staffs:

These companies have a team of highly proficient staffs who are master at handling clients and their queries. They are capable of finding quick solutions to the problems that customers face.

  • More time to spend on core-operations:

When you team up with an unparalleled partnering firm, they take up your all your extraneous business operations and give you more time to concentrate on business’s core operations so that you can focus more on improving old and implementing new business strategies.

  • Non-core business operations executed efficiently:

Since professionals at call centres are trained well to handle various clients at a single time and trained to work under pressure, backend operations are carried successfully and before time.

  • Access to the latest technology:

Buying licensed software and new technologies isn’t a big deal for outsourcing companies in Australia. They are always updated with what’s new in the market. However, every business isn’t capable of buying new technologies because of its high price. Therefore, outsourcing business could be a vital option.

  • High ROI (return on investment):

People often think that BPO services are just about saving company cost but in actual it’s more than that. When the manpower is cheaper, the business can take advantage of it and can transfer that cost to the customer. This can result in higher sales and ultimately high revenue.

With outsourcing, business management becomes easy and every process runs smoothly. But an excess of outsourcing can be bad for your business and can lead to failure. Let’s see what can happen-

Cons of hiring Outsourcing companies:

Everything has a good side and a bad side, so does outsourcing. Although its advantages are more than its disadvantages, it’s important to learn about both of its sides.

· Lack of control over the business process:

Since you’re contracting your business to somebody out of your site and present at a different location, you can’t have the desired control over your business processes. It doesn’t matter what directions you have guided your outsourcing company, you aren’t sure if they will follow exactly the way an employee does within your organization. You don’t know if your work is carried in a correct manner or not until you get the deliverables.

· Communication gap:

No doubt, face-to-face communication is the most effective way to communicate. But it’s the problem with outsourcing companies that you don’t generally have such kind of communication with them. The challenges while communicating with outsourcing groups are the distance, time and culture difference, language, communication media gaps.

There are various channels one can communicate with its outsourcing company such as through email, phone, project management software, social media, chat, and video conferencing. If your business has multiple outsourcing then media of communication may not necessarily be the same. Different provider, different media. Due to this communication issue, important information doesn’t reach them at the time required.

· Shatters company culture:

Outsourcing can really have a negative impact on the company’s culture as the professionals already working there feel that they are being replaced, there’s a disturbance in business processes already running within the organization. These things lower the morale of the employees and create a negative atmosphere over there.

Final words

Although outsourcing has few disadvantages, its advantages overshadow them. If outsourcing is done in a right way and if businesses approach a reliable outsourcing company then its cons can be overcome.

You may also like...

Add a Comment

Your email address will not be published. Required fields are marked *