5 False Assumptions every Executive should Know about Outsourcing
Companies from among all industries and across the size spectrum have proven many times with their experience the value of business process outsourcing (BPO).
Still, there are debates regarding the perceived benefits and concerns surrounding outsourcing. Not all of the commonly discussed concerns or perceived disadvantages, however, are founded on direct experience and truth.
In this article will debunk the most common misconceptions associated with outsourcing and disprove unqualified fears which have been stopping C-level executives to take the decision of outsourcing their business.
1. Outsourcing Leads to Loss of Control
Some businesses are under the impression that outsourcing means giving up control of their own business because the services (for example) that have been managed and delivered in-house are in the hands of an external party. The major concern here is that these services will be out of reach in terms of control and change management.
However, this is not the case. Good outsourcing arrangements are based on true partnerships, aligned around common business objectives and clear guiding principles that support the long-term goals of your business. Maintaining open communication and having aligned priorities with your vendor won’t allow you to lose either reach or control of your business.
2. Outsourcing is Too Expensive
An in-house solution generally requires a large up-front investment in technology and personnel. Furthermore, as technology has to be regularly updated the investment continues overtime. In addition, businesses usually find that technology must be optimized to work on a global scale which requires additional budget. On the contrary BPOs have those assets upfront as they are obliged to commit to certain standards regarding technology and personnel qualifications, in order to fulfill the requirements for certificates guarantying the quality of their services.
Let’s illustrate with an example why it may seem that outsourcing might be an expensive option. Let’s take as an example a company that has outsourced its contact center and want to increase effectiveness. The new goal for the vendor would be to answer 99% of the calls within a minute compared to 95%. For sure, to achieve that goal having more customer service agents on hand would be necessary, especially on peak periods. Hence, the increase in full time employees (for example) is ultimately bound to increase in budget.
3. Outsourcers Don’t Understand my Business
Again this is not the case. On the contrary, improved quality can be achieved by contacting with vendors with more expertise and more specialized processes in your area of operation. At least a good partnership will seamlessly transfer the operations of a service without decreasing its quality of service because vendors are bound to certain levels of service and quality.
Outsourcing gives an organization exposure to vendor specialized systems which allow not only for efficiency of business processes to be achieved but innovation too. Outsourced solutions employ dedicated experts to manage the outsourced process. These experts offer years of experience that many companies do not have access to or cannot afford on an ongoing basis.
4. We Need an Ironclad Contract
Many executives take the wrong approach of writing overly complex contracts with goal of protecting their business from the effect of any possible negative circumstance that may appear. However, as outsourcing is not a one-time transactions but an exchange that evolves as competitive conditions and technology change, trying to protect your business with ironclad contact is a waste of time.
Accept that it is impossible to take all possibilities into account and instead focus on ensuring that all parties understand their roles and responsibilities, and then put in place a process for negotiating changes.
You’ll be taking the risk to soar the relationship with your vendor even before the project has been started if you involve into prolonged and contentious contract negotiation process. What is even more problematic with overly complex contacts is that it makes the relationship between the vendor and the client even more inflexible. For example, signing a new contract may be needed every time when any changes such as new industry regulations or a change in business strategy appear.
5. It’s Not Secure
Concerns about security safeguards were major source of mistrust in the early stages of development of the outsourcing market. Now, however, as the industry has matured, these worries have largely disappeared. The reason is that most modern outsourcing vendors have very sophisticated security programs and management in place which do not allow for either confidentiality breach or leak of information to appear.
For outsourcing providers, security is a top priority because any data breach can cause them their own business. Security measure such as physical data center safeguards and data transfer infrastructure with controls that equal or exceed the protection of behind-the-firewall defenses have been employed by many of the outsourcing providers.
Regardless of your decision be informed that outsourcing is more than a vehicle for workload efficiency or a cost saving strategy. Gone are the days when the major reason for outsourcing was cost reduction. These days outsourcing has the ability to expand the horizons of the organization to new ideas, capabilities and expertise. What is more important, it provides a platform for innovation that can transform how things are done.
Last but not least, remember that in outsourcing every assumption made should be based on logic and information from research done regarding the subject, otherwise you risk false assumptions to dictate the future of your business.
(English) Three ways high-valued fast-growing tech companies are leveraging customer service to differentiate themselves from established businesses and competing start-ups.
(English) Discover how a well-executed corporate social responsibility (CSR) strategy can help attract and retain top talent in an increasingly competitive human capital market.
(English) Find out what it takes to turn challenging travel experiences into opportunities for customer delight, in this interview with JetBlue's customer commitment and social media manager.
(English) Introducing a checklist to help organizations looking to pursue an omnichannel strategy, assess their readiness and take the first steps to implementing an effective program.
(English) Discover how to effectively utilize technology to make a human connection with consumers in the age of an increasingly digitized customer experience.
(English) Global VP, Kevin Bottoms, shares insights on how fintechs and legacy financial institutions are combining their strengths to offer an exceptional and innovative customer experience.
(English) Our third issue of Customers First is dedicated to travel and hospitality. Discover best practices and expert insights from leading brands, including Jetblue, Joie de Vivre, Turo and more.
(English) Learn what brands in the travel and hospitality industry stand to gain from an omnichannel offering and how to tap into this growing opportunity for seamless customer service.
(English) Technology shapes the way we educate, communicate, conduct business and advance science, all while maintaining significant influence on the global economy. But the way we engage with technology is changing.
(English) Learn how sharing economy companies like Turo and Airbnb are learning both from and with traditional travel and hospitality businesses to improve the customer experience.
(English) Discover why catering to the needs of each demographic is key to creating memorable experiences and customer interactions in the travel and hospitality industry.
(English) Learn how the best travel and hospitality brands are utilizing white-glove service and concierge contact centers to transform travelers from simply being loyal, to proactive brand advocates
(English) Customers today expect more personalized service than ever before. Discover how travel and hospitality brands are using data to attain a true 360-degree view of the customer.
(English) In order to scale business efficiently, fast-growing companies need to be agile and smart with time and resources. Discover expert tips on when and where to outsource.
(English) Discover what organizations with older customers are doing to hire and train the right Millennial agents, as well as to help seniors help themselves.
(English) Delivering pleasant customer service in emotionally heated situations can be challenging. Discover how email can be used proactively to take control of difficult interactions and improve customer satisfaction, in ways that other support channels cannot.
(English) The young fintech industry has some major hurdles to jump over to unlock the value from our aging population. But it's worth the effort with an eye towards app development and customer service that includes these three tips.
(English) Fintech companies like WeSavvy, Wizdee and eToro are changing the finance industry for the better by using technology like social platforms, machine learning, and IoT to create more emotional, high-touch customer experiences.
(English) The coming AI revolution represents an opportunity not just to streamline certain customer service processes, but to take stock of the human touch and consider in what ways it may become more important than ever. Industry experts and AI firms share insights.
High staff attrition is the curse of the contact center. But it doesn't have to be. Find out how two very different companies learned to lower staff attrition and hold on to good employees.
In January the leading global management consulting firm A.T. Kearney issued the seventh edition of the Service Location Index. The Index draws a global outsourcing landscape based on metrics in three major criteria: financial attractiveness, people skills and availability, and business environment, measured for each of the 55 countries included in the research.
Multichannel solutions have grown increasingly mobile and consumers have begun to use their cell phones for almost everything. Should a customer want to contact a company or get any sort of information, they have the world at their fingertips.
(English) It has become increasingly difficult for game developers to generate and sustain brand loyalty. While technological advances and the proliferation of social media have generated more real-time interaction with players, it is important not to overlook the importance of player support, or to underestimate its powerful influence on brand loyalty and a player’s likelihood to recommend.
(English) A common trend among organizations nowadays is working with a number of service providers in order to address their contact center requirements. The main reasons in support of this practice are the access to scale and capabilities including languages and geographic market access, competitive tension, flexibility, and risk management.
(English) The world is changing faster than ever before as the population has been growing exponentially and the impact of our actions is felt not only stronger, but also in more and various ways. Populations’ footprint and irreversible impact has various implications for businesses in terms of their corporate social responsibility (CSR) policies as businesses possess not only the human, but also financial capital to be at the forefront of initiating and delivering socially responsible activities.
(English) Multilingualism is the ability of a community of speakers to use multiple languages. In Romania, multilingualism is one of the assets that attract large foreign investments, particularly for the call center and BPO industries. The contact center industry in Romania has been growing rapidly over the past 10 years – as of 2013, it employs over 30,000 people.
(English) In today’s global business environment where customer diversity and global operations are increasingly common, call centers need to offer some level of multilingual support to remain competitive. Multilingual support allows call centers to continue servicing their existing client base while also going after new business opportunities and generating additional revenue.
(English) As Generation Y customers, those born between 1980 and 2000, are heading towards their peak earning years, controlling and influencing a lot of spending it is crucial to factor them in your customer service equation. We offer you 5 simple best practices to follow in your customer service to the Gen Y customers in order to make them your loyal customers and enlarge your customer pool.
What do ninjas, pigs, titans, batman and a soiree have in common? Nothing? Think CallPoint style. What unite them are the members of CallPoint powered by TELUS who epitomized the spirit of those creatures at the annual admin teambuilding of the company. The event took place in the old town of Tryavna, situated in the north slopes of the Balkan range in central Bulgaria. All admin CallPointers from Sofia, Plovdiv, Bucharest and Craiova gathered together on June 21 in the town of Tryavna for the annual administration teambuilding, where their teamwork, intellect, creativity and initiative were tested.
(English) Corporate culture is currently more and more viewed as a crucial factor for employee’s performance, satisfaction and turnover, thus affecting the quality of customer experience. In regard to the importance of corporate culture we want to point your attention to an article written by Carolyn Crews, senior vice-president at our partners TELUS International. The article was originally published on customer Think blog and gives insights and best practices on the “right” corporate culture.