As a first-time outsourcer, you’re likely facing many questions as you take your first steps into first-time outsourcing. Questions about what outsourcing is and which steps to take might come up.
Then there’s the question of which outsourcing model best fits your business demands. This blog provides all the fundamental information about short-term and long-term outsourcing.
Short-Term and Long-Term Outsourcing: How Are They Different?
First-time outsourcers must know how outsourcing works before collaborating with a BPO provider. Your knowledge should also cover your ideal outsourcing model.
Understanding which outsourcing scheme works best for you is the foundation of your outsourcing pursuit. Below are all the things you need to know about these two types of outsourcing models.
Short Term Outsourcing
Short-Term Outsourcing, or Project Outsourcing, is a model in which businesses hire outsourcing providers to handle specific projects or campaigns. Projects under this model vary in size and complexity but typically only last within one-time, temporary, or seasonal periods.
For example, you’re a small, growing business looking to build a new website for your company. With project outsourcing, you can hire the relevant personnel, such as web developers and web designers, for the job.
Besides web development, the project outsourcing model can also address your needs in software development, digital marketing, graphic design, accounting, engineering, and other services.
Benefits of Short-Term Outsourcing
The benefits of this outsourcing model include the following:
1. Variety of Services – Short-term outsourcing covers many services. Business leaders can find unique skills and expertise under this model outside their workforce’s capabilities.
2. Flexibility – Project outsourcing allows more workforce flexibility because it is short-term, allowing businesses to quickly scale up or down depending on their project’s needs.
3. Accessibility—This outsourcing model allows better accessibility for most online operations. Businesses will be able to manage and track the performance of their projects anytime, anywhere.
4. Quick Turnaround – Projects under this model take less time to complete than in-house projects, enabling faster turnaround.
5. Lower Cost – Hiring project-based personnel costs less than employing in-house talent, allowing businesses to allocate more money and resources to other crucial tasks.
Long-Term Outsourcing
Long-term outsourcing, on the other hand, is more traditional. As its name suggests, this model focuses on more extensive collaborations between businesses and BPO providers. It’s ideal for outsourcing services over multiple projects. With an extended collaboration, this model also requires all parties in the partnership to deeply understand each other’s operations, business objectives, and current roadblocks.
An example scenario of this outsourcing model would be a growing business needing improved customer support operations. That service line may not be the business’s expertise, so it is looking to hire its customer service team externally instead. With a reliable outsourcing partner, it can leverage optimized operations for an extended period.
Services under this outsourcing model also vary. Examples include customer support, IT support, content moderation, and other back-office functions.
Benefits of Long-Term Outsourcing
Here are some of the benefits associated with long-term outsourcing:
1. Efficient Collaboration – Long-term outsourcing can bring better stability to your business. With more extended partnerships on projects, businesses and outsourcing providers are more likely to develop a shared language and culture. This benefit of long-term outsourcing makes for better overall collaboration. It also enables better communication between parties, minimizing conflicts that may arise throughout the partnership.
2. Business Alignment – The provider becomes more involved in a business’s long-term objectives in this outsourcing model. This puts the outsourcing partner in a better position to provide better service. With long-term outsourcing, BPOs become more familiar with their clients’ needs, enabling them to offer improved solutions and quickly adapt.
3. Established Trust – Trust is essential in every partnership. With long-term outsourcing, businesses are likelier to build better relationships with their collaborators. Fostering a culture of open communication and accountability ensures long-term success.
Key Considerations When Choosing an Outsourcing Model
As business leaders, it’s essential to understand the applications of both outsourcing models. Each one has its own set of advantages and risks. Ultimately, businesses should realize which model works best for them and find a trusted BPO partner to help them accomplish their objectives.
Here are some factors to consider when deciding between short-term and long-term outsourcing:
1. Project Requirements
Both outsourcing models work best with particular projects. If your business project demands specialized solutions for only a short period, a short-term outsourcing model will suit you best. On the other hand, if you’re aiming for an extensive partnership, you should consider going for a long-term outsourcing model.
2. Overall Budget
Before choosing an outsourcing scheme, consider your business’s financial capabilities first. Would you prefer the costs associated with a long-term external team or a cost-efficient, project-based one?
3. Quality Control & Risk Tolerance
Consider your risk tolerance and the quality of service you expect from an outsourcing partner. While short-term outsourcing offers flexibility and accessibility, a long-term outsourcing model can provide better control and alignment to your business.
Highly Adaptable BPO Solutions for Your Outsourcing Needs
ClearSource is a trusted BPO partner offering solutions that drive flexibility and growth amidst ever-changing industry demands. Our industry-leading services extend to businesses of different industries and sizes.
Set up a call with our team today to learn how we can effectively address your business’s long-term or short-term projects.
