In the global economy we live in, outsourcing has become very common and it’s a good way to support your business, letting you concentrate on your core job while you’ll externalize “Secondary” activities. You can be more agile and cut costs but there is more as you’ll read below.

Advantages of Outsourcing

  1. It’s cost-effective
    This is by far, the main advantage of outsourcing and depending where your business is located, you can make substantial savings. The main one will come from the competitive hourly rates, the second will come from the taxes and finally, not having another employee in the office can also represent a difference.
  2. It’s time-effective
    When outsourcing, you need to spend time to establish clearly what you need, to detail your project and then to choose a contractor at first, but it’s not much, compared to the time needed to hire & train a regular employee. You will also spend less in R&D and market research.
  3. You can still keep control
    With modern technologies, it’s child’s play to stay in touch and to have a look at your team on the other side of the world. Outsourcing then, does not mean losing control over your processes and rules, you can have them enforced and be able to check on them at all time. The simplest and most used way is Skype but you can also opt for more robust services like Campfire or Basecamp.
  4. Lower needs in Market Research & R&D
    In any field, but mostly in IT and other technical ones that evolve at a fast pace, you can hardly stay updated unless, you spend a lot of time studying and training. By choosing to outsource some tasks, you’ll spend less energy and money doing this, as it’s part of the outsourcing contractor or freelancer’s job to stay updated and competitive.
  5. English as the Language of Outsourcing business
    Without exaggeration, you have access to the world when you’re able to communicate in English. From India to the Philippines; going through Ukraine up to rest of the world, you will have plenty of choices when choosing a contractor and you can have staff from all over the globe.
  6. Cheap does not mean “cheap”
    Cheap does not mean “cheap”. You need to choose wisely what company will work for you but the point is that, most of them, offer competitive tariffs and in some cases, the quality of the work delivered is beyond expectations for such rates.

Drawbacks of Outsourcing

  1. It’s hard to find a good business partner
    It’s the main problem I hear about when it comes to BPO, a lot of companies try some services and are disappointed by the result.
  2. There is a lot of choice
    If you start to go on market places or directories that list BPO companies, you’ll see that there is a lot of choices, if you include freelance contractors, it’s even worse actually. This is good in itself but it can be confusing when it comes the time to take a decision.
    To illustrate this, I invite you to watch the following talk from Barry Schwartz about the paradox of choice, it’s very interesting.
  3. The Moral aspect of Outsourcing in “First-World” Countries
    Outsourcing is considered as the second main cause of job-loss in Western countries, not so far behind relocations. It was really considered as a threat in the past 10 to 20 years, the time for people to adapt and to embrace it. Now a lot of Small & Medium Businesses are prospering thanks to Outsourcing and globalized market places – like Upwork or Freelancer to quote only the most famous ones – are flourishing.

I hope this article answered the questions you had about BPO and how you could use it as an opportunity to make your business more efficient. Feel free to share your experiences in the comments below.

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Bench Accounting