Outsource Call Center

Outsourcing What Exactly Is ? Everything You Need to Know!

Outsourcing

Everyone is talking about outsourcing, from conferences to online forums. But what exactly does it mean?

WHAT EXACTLY IS OUTSOURCING?

Outsourcing is the strategic use of external resources and labor to complete tasks that were previously handled in-house by a company’s staff. Simply put, because not all jobs can be done in-house, outsourcing allows specific parts of a project or service offering to be delegated to efficient service providers who are experts in that particular field.

To put it another way, outsourcing is the process by which a company seeks or requests the assistance of an external firm to handle specific tasks so that it can focus on the core / most important aspects of its business.

Assume you’re a software developer or a health care provider; your core competency is creating amazing applications or providing best-in-class healthcare services. However, there are other critical aspects of your business such as payroll processing, IT infrastructure, call center outsourcing, and so on. To handle these in-house, you may need to hire 10-15 full-time employees, which will be far beyond your operating budget! So, what are you going to do? Employ just one and make do with an ineffective support staff? Or do you hire the 15 you require and wait for the creditors to come knocking?

The third option is to outsource, which is the better and more practical solution. It allows you to get the services you require at a fraction of the cost and have experts deliver better results.

How Do You Outsource?

There are 3 main types of outsourcing which are onshore, nearshore or offshore.

  • Onshore refers to outsourcing done within the borders of a country
  • Nearshore refers to outsourcing to a company in a neighboring country.
  • Offshore outsourcing occurs when you outsource to a country far away – usually a whole different continent because it is significantly cheaper. A perfect example would be a company based in the US outsourcing jobs nearshore to Mexico or offshore to India.

What Should Be Outsourced?

You may not realize it, but your company already outsources some of its processes. Consider your website: do you have an in-house team of web designers, builders, and digital marketing experts? Is it outsourced to another company? The same is true for your lawyers, janitors, security personnel, and even auditors.

It is now very common to see businesses relocate from one country to another in the manufacturing industry. Your cereal was made across the border, your socks were made in Turkey, your coffee was made in Kenya, and the majority of the mobile devices you use were made in China.

So, to answer your question, anyone, including you, can outsource, whether it’s business hours support, after-hours IT support, or a 24/7/365 general customer service help desk.

What Is the Process of Outsourcing?

Outsourcing has been around for a long time; the internet has simply made it easier to carry out. Because of technological advancements and the ease of access to hardware, software, and internet connectivity, the world has become one global village, making outsourcing much easier. People can work from almost anywhere, and seamless communication is now possible over greater distances than ever before.

BPO, KPO and ITO? What Do They Mean?

These refer to three different types of outsourcing:

  • Business Process Outsourcing (BPO) involves getting a third party to handle certain operational functions, e.g., customer services, payroll, accounting, inventory, etc.
  • Knowledge Process Outsourcing (KPO) requires more advanced technical skills. Services that can be outsourced under this category include legal services, content writing, data research and analysis, research and development, and intellectual property.
  • Information Technology Outsourcing (ITO) involves tech-based functions such as software and application development, network administration, and web development.

What Are the Advantages of Outsourcing?

Consider how much it would cost (both in time and money) to produce that special coffee mug in-house if outsourcing did not exist. Nobody would ever drink coffee again if you grew your own beans and made your own milk and sugar.

Outsourcing customer service saves a significant amount of money. Companies in the United States, the United Kingdom, and Europe can save up to 65% on labor costs by outsourcing to other countries.

Other advantages include

Enhanced Efficiency

Outsourcing allows you to leverage the hired firm’s many years of experience and advanced business practices to help your business grow quickly. Their knowledge and understanding, combined with their many years of experience, ensure that the job is completed to a standard that can compete with any other firm in the world. This invariably leads to increased efficiency and productivity, which will undoubtedly affect your company’s bottom line.

Concentrate on the Essentials

Outsourcing specific tasks to third-party professionals frees up time and energy that you can use to build your brand, invest in research and development, and provide better value and services to your clients.

Save money on infrastructure and technology.

If you outsource some of your processes to a third-party company, there is little or no need to invest in specific infrastructure. The business partner to whom you outsource jobs would be responsible for the infrastructure required to carry it out.

Availability of Skilled Resources

You will not need to hire or train employees. We’ve all heard that expanding your customer support can be time-consuming and costly. Firms such as IconiCS Group will handle all of your customer service requirements and keep your customers coming back for more. We use world-class business practices that we have perfected over the years by catering to clients from all over the world.

Services that are faster and better

Provide better deliverables to your clients while reducing the time it takes to reach the market. Outsourcing makes it easier to turn your ideas into products in the shortest amount of time.

How Big Is the Global Outsourcing Market?

According to IDC, worldwide services revenue increased steadily in the Americas during the first half of 2018.

outsource call center

Which Business Functions Are Outsourced?

These are few of the business functions which are commonly outsourced:

  • Accounting & Book-keeping
    • Book-keeping
    • Reconciliation
    • Account Payable
    • Account Receivable
    • Tax Preparation
    • Tax Filing
  • Banking, Finance & Insurance
    • Transaction Processing
    • Fraud Prevention
    • Due Diligence
    • Loan Disbursement
    • Load Recovery
    • Claims Processing
  • Customer Support
    • Help Desk
    • Customer Service
  • Creative Work
    • Content Writing
    • Content Moderation
    • Video Transcription
    • Video Titling
    • Animation
  • Engineering
    • CAD/CAM
    • Geometric Modelling
  • Human Resources
    • Employee Life Cycle Management
    • Payroll Processing
    • Employee Greviance Management
    • 401(k) Processing
  • Information Technology (IT)
    • Application Development
    • Application Maintenance
    • Data Center Operations
    • Database Administration
    • Desktop Support
    • Disaster Recovery Services
    • IT Security
    • Network Operations
    • Web Operations
  • Legal Service
    • Agreement drafting
    • Compliances
    • Research
  • Logistic & Supply Chain
    • Inventory Management
    • Export-Import Documentation
  • Manufacturing
    • Design & Packaging
    • Returns & Claims
  • Sales & Marketing
    • SEO
    • SEM
    • Email Campaigns
    • Lead Generation
    • CRM
  • Security
    • CCTV Monitoring
    • cyber Forensic

Do You Want to Outsource Your Company’s Customer Service?

Over the last ten years, IconiCS Group has proven to be a dependable outsourcing IT help desk provider for various businesses in various industries in Jordan, and we’d love to work with you as well!

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Author

IconiCS Group

IconiCS Group, founded in 2021, has rapidly emerged as a dynamic player in the Contact Management Solutions (CMS) and Business Process Outsourcing (BPO) industry.

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