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20 Jul 2023

Outsourcing Your Staff: Pros and Cons

At this point, many businesses are struggling to find the right path to recover from the pandemic. Companies need to pursue growth amidst an uncertain economic climate, and many are using caution before making any long-term plans or investments. Hiring staff is essential for growth but also a significant investment. Intelligent business owners are considering business process outsourcing to manage this cost feasibly to fill critical staffing needs while keeping costs in check.


We break down the benefits of business process outsourcing

At this point, many businesses are struggling to find the right path to recover from the pandemic. Companies need to pursue growth amidst an uncertain economic climate, and many are using caution before making any long-term plans or investments. Hiring staff is essential for growth but also a significant investment. Intelligent business owners are considering business process outsourcing to manage this cost feasibly to fill critical staffing needs while keeping costs in check.

What is outsourcing?

Outsourcing is when a business hires a third-party company or individual to provide services initially done in-house by staff. This could be anything from IT support to accounts receivable to customer service or marketing. Business Processing Outsourcing (BPO) is a cost-effective way of riding the waves of uncertainty after recent global events. Companies like Acxelsus process outsourcing services to help companies of all sizes reap the benefits of reduced expenditure on staff.

Why Should I Outsource?

Like many other countries, the Australian economy has returned to normality after the pandemic. You may need to overhaul your business and reduce costs; however, outsourcing some of your company’s processes like marketing, accounts and customer service can ensure you can still deliver critical customer service and operational functions. Outsourcing might work in your favour if you want to grow your company. Let’s look at the pros and cons of going offshore to find a skilled and capable team to support your business.

Benefits of Business Process Outsourcing

  • Lower costs

A recent study shows that outsourcing can save up to 30-50% in costs with virtually the same skills and performance. Employees abroad have diverse skills and expertise, yet you can save on staff wages as the cost of living in countries such as the Philippines tends to be lower.

  • Focus on business growth.

Free trade and globalisation have seen a boom in outsourcing in recent years, allowing companies to increase their reach into new markets. Outsourcing helps owners and leadership teams focus on efficiency and more significant revenue-generating projects, ensuring their operations run smoothly.

  • Business flexibility and expansion

With outsourcing, it is now possible to have a team working in your business 24/7, with teams in different time zones extending the availability of critical functions like customer support. Again, since outsourcing reduces hiring costs, your business can expand while hiring and developing staff at an affordable price.

  • Reduced risk

An outsourced team can reduce risk in your business by providing professional services that are flexible and adaptable to what your business needs - without a substantial financial outlay. This means you are not financing the cost of hiring, managing and training permanent staff.

  • More focus on critical projects

Outsourcing strengthens your focus on high-value operations and projects that benefit your bottom line. It allows you to create a dedicated team that focuses on standard or repeatable business processes while you look after the oversized picture items. When companies embrace outsourcing and train their employees well, the outsourcing team can move confidently from learning the ropes to taking ownership of their role, giving you peace of mind that they are performing tasks to a high standard.

Disadvantages of outsourcing

Although the benefits far outweigh the negatives, it’s worth weighing up some potential risks before you settle on an outsourcing partner. In all cases, these challenges can be overcome by only engaging with a reputable business process outsourcing company with rigorous quality standards, a good culture, and proven experience in helping companies succeed.
  • Security issues

Outsourcing can potentially create a risk of sensitive information being leaked to other parties. To avoid any data or security breach, engage a reputable company like Acxelsus that can be trusted with sensitive material.

  • Lack of focus

Your outsourcing company may have different contracts with other firms and manage them all simultaneously. Before signing a contract with a BPO company, research their reputation and client base and consider a smaller boutique firm with the time and capacity to dedicate to your business. Look at how we helped construction and infrastructure supplies company Jaybro expand its business here.

  • Communication barriers

Language barriers and delayed communication due to time zone differences are something to be aware of when engaging an outsourcing company. Before outsourcing, ensure that you are comfortable with the team you’re working with and look for a culture fit and a team that understands how you like to operate your business.

The verdict: BPO helps companies grow!

If done right, BPO is an intelligent option that can reduce costs while providing quality service to your internal and external customers. Giving businesses the time and resources to get on with revenue-generating activities is one of the critical benefits of having an outsourced BPO team in your corner. To find out more about how we can help your business grow and prosper, get in touch with the team at Acxelsus.   

  

 
 

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