Five Effective Tips for Outsourcing Business Functions

1. Five Effective Tips for Outsourcing Business Functions While selecting a BPO service, ensure they have a proven track record, flexible contracting, and the required specialization among other things. Managed Outsource Solutions www.managedoutsource.com (800) 670 2809 8596 E. 101st Street, Suite H Tulsa, OK 74133

2. Today business organizations greatly rely on outsourced solutions. This is because of the need for improved efficiency in customer service, and to improve employee productivity, reduce cost and optimize business processes. However, choosing a BPO solution that has good management skills is important. Business process outsourcing is now regarded as an important component of the business strategy of major organizations. Apart from being mere service providers, business process outsourcing companies have become excellent partners to business organizations and an important source for strategic advantage. According to the 2018 Deloitte Global Outsourcing Survey, businesses are outsourcing their core business functions with the objective of improving efficiency and customer services. To avoid risks, it is always advisable to have a good strategy about how to outsource business operations. Following are some of the tips that one can keep in mind before outsourcing: • Find out what tasks are important: For small business owners it is not possible to wear all the hats of a business as it can lead to waste of time and money. Repetitive and monotonous daily tasks such as checking emails and replying, filing taxes etc are time-consuming activities that can be outsourced so that business owners and employees can focus on other productive activities and business growth. According to Deloitte survey, IT functions are the most commonly outsourced function because hiring new employees with IT skills is an expensive affair. Outsourcing IT is more cost-effective and ensures more efficiency. • Keep all your legal requirements ready: It is quite natural for business owners to have many concerns regarding outsourcing and the most common fear is the safety of crucial data and being compliant with necessary laws and regulations. With laws like GDPR (General Data Protection Regulation) and CCPA (California Consumer Privacy Act) all crucial data like consumer information and online data must be stored safely. These laws do not care whether you are outsourcing or in-housing, it is the ultimate responsibility of business owners to comply with the laws. • Know your vendor well: Before outsourcing your business operations, it is important to know about the vendor that you are working with. With the aim of choosing the most affordable one, business owners often fall into the trap of choosing the wrong vendor. As per Deloitte survey, the No. 1 thing companies that outsourced want to do differently next year is spend more time on their service provider selection. So, before rushing to partner with the first vendor that www.managedoutsource.com (800) 670 2809

3. you see, it is always good to look for other options that can assure quality work at affordable rates. • Aim to transform the organization: Outsourcing completely changes the company and it prepares your staff, workflow and company structure to work towards meeting your objectives. So before you present outsourcing as a strategy, make sure that you know the answers to hard questions that these decision-makers are bound to ask. Find out whether outsourcing will affect your current team, your business strategy, your cost and how long the process will take from start to finish • Identify what you want and pay for what you get: According to Deloitte survey, 35 percent of the respondents didn't expect outsourcing would lower their costs and another 32 percent expected that outsourcing would lower their operating costs by less than 10 percent. Only 9 percent of companies expected that outsourcing would lower their costs by more than 30 percent. But even the companies that predicted higher costs still expected that outsourcing would be worth it. Outsourcing is an opportunity for businesses to grow and increase profits, pursue new opportunities and minimize risk. For small businesses that are on small budgets, cost is an important reason for outsourcing. Access to new technology, ensuring risk management and compliance, and reducing operating cost should be the principal market drivers for a company choosing to outsource. When selecting a BPO service, it is important to ensure that they have a proven track record, guaranteed service level required, flexible contracting, previous experience and grade of specialization. Outsourced solutions that satisfy these requirements will prove to be beneficial for your company. They ensure smooth functioning of your organization, reduce costs and enable you to focus on core business activities. www.managedoutsource.com (800) 670 2809