The Benefits and Importance of Outsourcing: What Is Outsourcing in Business?

Signpost illustration, two arrows - inhouse, outsource

The Benefits and Importance of Outsourcing: What Is Outsourcing in Business?

Business outsourcing is the practice of hiring an organization outside your company to perform a service or create goods. This is usually done as a cost-cutting measure, but it also allows companies to work with experienced professionals in a specific service niche. That’s why outsourcing in business is what many organizations do to create more efficiency in their business processes.

But that just answers the what. What you really should be interested in is the why: Why is outsourcing good for businesses? Why should you consider outsourcing a specific service or an entire service package to a third-party company? We’ll go over all of these questions and address the benefits of outsourcing in the service industry.

Why Outsourcing Is Important for Businesses

Imagine this: Your small B2C business is growing rapidly. After careful consideration, you realize your customer experience could be drastically improved if you had a streamlined delivery and fulfillment system. Up until now, you and your team have been shipping all of your products without any outside help.

You could improve your delivery system by hiring more people, or you can invest in software that makes it easier to process orders. 

But here’s a problem: How would you train your new delivery and fulfillment employees? Would you train them to complete deliveries the same way you’ve always done it? Sure, that may free up your schedule, but it’s hardly effective at improving your process.

You probably know where we’re going with this: Outsourcing business processes is the better route. After all, an outsourced company’s niche expertise means your dollar will go further than if you spent it developing a new delivery department yourself.

What Are the Benefits of Outsourcing in Business?

 

Young Businesswoman Wearing Telephone Headset Talking To Caller In Customer Services Department

Let’s dissect the above scenario and look at the reasons why businesses outsource and the advantages they can experience:

  • No individual employee management required: While you often still have a say in how the outsourced business handles your staffing, individual employee management is largely hands-off. The company you outsource to will take care of all recruitment, training, and management of their staff, meaning fewer headaches for you and more time to spend on working on your business, not in it.
  • Sensible cost reductions: Outsourcing is a straightforward way to take advantage of economies of scale—you can quickly access high-level quality while paying less money.
  • Better service offerings: The specialization of your outsource partner means you can offer better service than you ever could manage from an in-house team. Many companies employ this in several facets, like hiring out web development and graphic design work to a marketing agency instead of hiring new employees of their own.
  • Contractually accountable teams: It is easier to hold outsourced companies accountable with contractual penalties or incentives than to try to enforce individual employee performance.

What’s the Benefit of Outsourcing Customer Service?

ClearSource BPO specializes in outsourced customer service. Our years of experience and correspondence with our clients have revealed several benefits of outsourcing customer service for any industry:

  • No staffing issues: Call volume can be wildly inconsistent. When companies try to staff their own customer service representatives, they may be severely over or understaffed at any time. This leads to panic hirings or mass layoffs simply because service needs are pretty volatile. By outsourcing to a BPO, an agency can move service agents on and off accounts to meet changing call volume demands.
  • Access to service best practices: BPOs work with a lot of different industries. As such, they learn and develop best practices for businesses of all types and sizes, which they can apply to your needs.
  • Increased cost savings through offshoring: Many BPOs take advantage of the cost savings of offshoring, an economic advantage in which you can also participate. And language barriers don’t need to be an issue—ClearSource spends more money than anyone else in the industry to hire offshore agents with next-door-neighbor-level English proficiency.

Experience Outsourcing for Yourself

You shouldn’t just take our word for it—you can learn why outsourcing is important for businesses through your own experience. Contact ClearSource BPO today to learn more about our outsourced customer service offerings.