For years now, business process outsourcing (BPO) has been a pivotal strategy for businesses that aim to improve efficiency and focus on core competencies, while delivering the same or, often, higher quality to their customers.
We would like to dig deeper into those myths and make sure that everyone understands the concept of BPO and its advantages.
Myth: Outsourcing is limited to call centers.
Yes, a significant part of the BPO industry involves call centers, but the range of processes that would benefit from outsourcing goes far beyond just that. A lot of BPO companies provide services in various areas, like HR, finance, IT support, marketing, and more. At ProSource for example, we’re not just merely providing our clients with an already set up and announced service – we are creating a position or a whole team, based on the business needs and strategy.
Myth: Outsourcing has cost-reduction purposes only.
A key advantage of outsourcing is the cost reduction it brings to businesses. That mostly stems from lowering hiring, training, and other HR-related costs, as well as office space, maintenance costs and overhead. And while that is a huge selling point for a lot of businesses, they are often misled that that’s all BPO is – a cost-cutting tool.
The fact is though, outsourcing brings a lot of other benefits. It enables companies to access specialized skills and talent that leads to improved efficiency and process optimization. They now have easy access to a more knowledgeable workforce that is not necessarily in the same country as the business, without having to worry about the legalities of hiring abroad. It also allows companies to scale as needed, without dealing with internal issues that scaling would otherwise involve.
Myth: Outsourcing compromises quality.
A major misconception is that outsourcing always leads to a decrease in the quality. In reality, well-managed outsourcing can result in more efficient and higher-quality service, thanks to the specialized knowledge and experience of outsourcing partners.
Myth: Outsourcing is not a long-term solution.
Some think outsourcing is only a short-term solution, utilized until the company sets up to bring the process in-house. Many businesses find that outsourcing is not just a beneficial option to fill a temporary gap, but a permanent solution for optimizing their business.
Myth: Outsourcing means losing control of your business.
Many business owners fear that outsourcing may cause them to lose control over their operations. The truth is, many BPO providers have communication frameworks and detailed reporting to ensure the control over operations remains with the business. At ProSource, we pride ourselves with the flexibility to adapt all processes to the client’s needs, all the while maintaining full transparency.
Myth: Outsourcing is only for large corporations.
It’s commonly thought that only big corporations can benefit from BPO. However, one of the major benefits of BPO is its scalability without much hassle. This makes them incredibly useful for small and medium-sized enterprises (SMEs). Outsourcing also enables SMEs to access expertise and resources they would otherwise not be able to afford.
Myth: Outsourcing leads to job losses.
A common myth about outsourcing is that it leads to job losses in the client’s country. Even though BPO does involve the relocation of certain tasks, it can create jobs in different areas that would lead to business expansion and ultimately generate more employment opportunities.
Myth: Outsourcing is the same as offshoring.
Many confuse outsourcing with offshoring. Offshoring involves moving business operations to another country, while outsourcing is just hiring another company to handle some specific business functions. With outsourcing, said company can be both domestic or international.
Myth: Outsourcing increases data security risks.
There’s a myth that outsourcing increases the risk of data breaches. However, reputable BPO firms adhere to strict data security standards and are often better equipped to protect data than the businesses that hire them, thanks to specialized knowledge and resources.
When strategically implemented, BPO offers a multitude of benefits that go beyond just cost-savings. If considering it for a business, it is important to understand those myths in order to make an informed decision and fully capitalize the advantages that come along with outsourcing.