Myths and Facts about Business Process Outsourcing


In this competitive era where the race to win customers’ trust is getting tougher day-by-day, outsourcing has become a common need. Although many companies do not trust outsourcing operations even today, however, its significance cannot be denied.

Cost-cutting plays a crucial role for every business and companies look forward to measures that can help them reduce capital expenses. Outsourcing the business operations to an experienced partner, the business has the opportunity to reduce several in-house costs like building in-house infrastructure building, hiring and training employees, buying tools, paying employees on monthly basis, etc.

There are several pros of business process outsourcing, which compels companies to take outsourced services. However, it is very important to find the right outsourcing partner, as selecting a wrong partner would be damaging to the business brand image and can be the root cause of several problems. Companies need to find a partner who has the domain-specific experience as a business, which is important for future help.

When the partner is specialized in offering services as your business needs, it is easy to influence the customers and answer them efficiently for customer support.

Outsourcing is in much buzz nowadays and is slowly enticing more and more companies. It is an easy-to-go and cost-effective option that no company would wish to miss. When it comes to BPO outsourcing, Indian are said to be more faithful than other international countries. Since India has a history of providing customer support in a limited budget, it is the favourite country when it comes to outsourcing customer service.

Outsourcing is a multi-dimensional industry and we have heard several myths related the same. Debunking the myths, here we have the facts you need to know:

Myth- Outsourcing is expensive

Fact- People always call outsourcing an expensive option, however, it comparatively cheaper when compared to in-house operation expense. Hiring and training in-house is expensive and outsourcing, on the contrary, save much expenses like in-house training, infrastructural costs, expense on tools and techniques, etc. The cost for outsourcing although varies from firm to firm, it anyway costs much less than in-house services. In-house operations require permanent hiring, however, outsourcing allows the business to get a partner for a certain time and pay only for the work done.

Myth- Risk to business data

Fact- Saying outsourcing brings risk to business data is wrong! When a business outsources its service, it signs a contract with the partner that has an agreement of keeping the data safe and there are several other defined rules for safety and punishments for breach issues. It is essential to outsource to a known partner for safety. Business owners are suggested to go through the partners’ document and rule book to be sure that their parameters suit the business needs. Since partners understand your business service, relying on them is not risky for the business brand image. BPO companies promises to keep sensitive data safe from any kind of threat.

Myth- Unreliable workforce

Fact- Outsourcing never gives an un-reliable workforce to the partner. The outsourcing company has experience of working for numerous firms, so they have pretty experienced agents at work. Irrespective of hiring remote non-experienced agents in-house, it is better to outsource to skilled agents. Outsourcing is cost-effective and is thus the best reliable and in-budget source to boost business services.

Myth- Loss of control

Fact- You must have heard that outsourcing brings loss of control on the business data. Well, there is no loss of control of business functions until the business owner takes care of the business service. The owners need to keep the last decision to themselves so that any issue of business functions are sorted at their end. The business owner may have different goals than the outsourced partner, thus keeping a check on the service results is essential to not land in any unwanted situation. Before launching anything, it is essential for owners to know the partners’ performance, so that any required changes are easy. Doing so, there is no issue of loss of control.

Myth- Outsourcing is not for start-ups

Fact- Many businesses feel outsourcing is not for start-ups. Well, the irony is, outsourcing is the best for start-ups! When a business establishes itself new in the market, it does not have a high budget to work along the same pathway as experts. This is where outsourcing helps. Getting an external partner, the business earns the feasibility of working with skilled agents on-board and that too keeping view on the budget constraints. It is hard for new companies to get skilled agents at work and outsourcing offers this splendid opportunity to expand business processes to its best seeking budget.

Myth- Outsourced partner has no industry knowledge

Fact- Businesses have this myth that the outsourcing partner lacks knowledge about business services. Well, search a partner that has experience of working with the same industry type as yours and train the partner about the services you offer. The partner having an experience of working for several other firms, very well know the effective ways to deal with the customers and thus they can be trusted. As owners’, businesses just need to provide proper information to the partner and the agent thereafter researches to deliver astounding results.

Myth- Business process outsourcing brings hidden expenses

Fact- Outsourcing reduces business expense and not exceeds it! It is a myth that says outsourcing has hidden costs and that it can cost more than in-house operations. Once a business outsources its services, it gets to know of the perks that getting an external partner brings. There is no hidden expense, moreover, outsourcing saves from the hidden expense of in-house services. After outsourcing and signing a contract under a specific budget, there is no need to pay more for any expense. However, in-house services continuously face hidden expenses.

Thanks for reading!

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