Tips to Overcome the Disadvantages of Outsourcing
Updated: Oct 10, 2022
Outsourcing or BPO (Business Process Outsourcing) is one of the most rapidly rising industries all across the globe. No matter how big or small, any business is always looking for ways to keep up with the new trends while cutting down costs.
The cost-cutting aspect is vital to why business process services have become so popular. However, before deciding to hire a BPO service company, you should also learn about the disadvantages of outsourcing.
This article also aims to guide you on how to overcome the drawbacks.
The Disadvantages of Outsourcing and How to Overcome
We've already mentioned both upsides and downsides to using BPO service companies. We established some of the upsides in the previous section. Now, let us focus on some of the downsides.
Just keep in mind that these are all possible risks when you are using BPO services for your company. It would be best if you kept these things in mind before looking for a BPO service provider and handing over your company responsibilities.
Minimal Control Over the Project
Business process services include BPO companies taking over the projects or tasks for the outsourcing company.
Outsourcing a project to another company or a group of people means handing over complete control of that project. The advantage of outsourcing a project is that you will no longer have to worry about it. It also means you will not have a say once the work on that project commences.
Companies often need to change their strategies in the middle of a project or introduce additional tasks.
They have minimal control over the projects with a BPO company. The service level agreement might not allow the changes or the BPO companies can charge extra to modify the project.
Tips: A clear SLA ( Service Level Agreement) is necessary to make sure that your company has the utmost control over a project even though it is run by a BPO provider. Set meaningful benchmarking data, KPI, and regular reporting system.
The security issue is another potential risk one should consider before handing over business responsibilities to a BPO company. Handing over a project can sometimes include more than just the project itself.
As the client company, you may have to hand over sensitive information about your company to the BPO service provider.
You have that constant fear of confidentiality when you hand over something sensitive about your company to someone else. If you know that they can use that information to damage your company's image, you need to be extra cautious.
Tips: Sign a non-disclosure agreement (NDA) before the deal. Make sure to choose a BPO company that has a good reputation. Look for companies that are serious about safety issues and have top-notch security to tackle any snooping third parties.
Hidden Costs of Outsourcing
Cost reduction is always highlighted whenever there is talk of outsourcing. People seek outsourcing for their business because of the quality of service they can get at the cost.
Outsourcing is much cheaper than hiring any employee for your company. But there is still the chance of you being ripped off if you do not know what you are getting into.
BPO companies often have pages of long contracts with a lot of information about the agreement to be signed. Outsourcing companies do not bother to go over the full contract before signing. They regret that decision after receiving the BPO company's check.
Even if the company or people you hire to outsource for you give you an estimated cost of their services, some hidden costs can still be included.
beforehand a low-cost a You will have no idea about these costs unless you read the contract. It will seem time-consuming, but it is worth it unless you want the outsourcing to exceed the budget.
Tips: You should anticipate the cost beforehand and set a maximum budget. Remember, low-cost BPO service providers are often not equipped with the best resources. The budget increases when they have to face a new tech for a particular project. Make sure that the BPO company you will be partnering with has a proven record of experience in the sector.
Outsourcing deals are not made face-to-face most of the time. This field consists of a lot of workers from different countries all over the world. You can hire someone for customer service work from Bangladesh to work on a campaign in well-reputed beforehand peer-to-peer USA.
The communication between the client company and the BPO company is through emails, texts, or maybe video conferencing. The possibility of miscommunication cannot be ignored. Things can get lost in translation pretty fast, and you will be unable to rectify them once the work has started.
Tips: Well-reputed BPO companies have 24/7 support teams. Develop a peer-to-peer communication protocol. Provide communication guidelines to avoid discrepancies. Try not to be lethal about minor language and cultural differences.
Why ASL BPO?
Founded in 2014, ASL BPO has maintained its reputation as one of the country's leading outsourcing service providers. At ASL BPO, we ensure maximum satisfaction for our clients with our expertise, robust technologies, and high-performance solutions.
Your security is our priority. Our 24/7 customer support team is always on board to assist clients professionally. Hire us to run your valuable jobs at ease.