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The Pros and Cons of Having an International Outsourcing Partner

International Outsourcing Partner

Companies worldwide took every necessary action to run their business operations as normally as they could amid the pandemic. They had to adopt suitable strategies, such as outsourcing, to stay afloat. Here, having an understanding of outsourcing industry trends is crucial.

Global outsourcing remains a solution for companies that need an extra hand on their day-to-day operations. Likewise, it helps businesses save costs and time by leaving the hiring and training of personnel to outsourcing providers. 

For example, Asia is considered a top outsourcing destination. Outsourcing in Asian countries such as the Philippines, India, China, Thailand, and Vietnam allows companies to save as much as 60% on labor costs. The global business process outsourcing industry is also expected to grow in market value in the years to come.

Global Outsourcing: Pros and Cons 

Choosing the right outsourcing partner is important to keep the business running smoothly and ensure a win-win between both parties. But as with any other kind of business endeavor, outsourcing has its strengths and weaknesses. 

Outsourcing Pros

Cost-saving 

Business owners constantly look for cost-efficient ways to improve their company’s daily operations. While several companies spend on outsourcing third-party services, those expenses are way lower than managing business operations in-house. 

For example, working with contractors or freelancers is cheaper than hiring employees and spending time and money to train them. When you outsource, the offshore vendor is in charge of finding talent with the knowledge and skills your business needs to operate daily and attain profitability. 

As mentioned, Asia is known for being a global outsourcing hub mainly due to its lower labor costs. You can take advantage of the lower labor expenses to increase revenue. At the same time, outsourcing provides jobs, especially for developing countries, and a chance to showcase their technical skills and expertise to the world. 

Round-the-clock customer support 

Thanks to the internet, people have easy access to products, services, and information they need. As a business owner, 24/7 customer service is important for those who need assistance, no matter the time of the day. This is where outsourcing can help you when it comes to providing quality, round-the-clock customer service. 

Trustworthiness and financial security 

Working with a trustworthy third party is important to ensure that your business runs as efficiently as possible, whether that means receiving on-time or high-quality deliverables.

Different BPO types also help eliminate business risks. If an outsourcing provider commits a mistake, your company’s reputation may suffer. In such a case, you will be financially compensated by the third party due to the said errors. As such, third-party service providers work hard not to commit blunders, lessening the risks for your business.

Focus on core business functions

Outsourcing can help your company with a wide range of services. As a result, you can focus on your core business processes and improve critical workflows. 

Outsourcing Cons

While you can save a lot of time, money, and resources through outsourcing, you must consider the following factors before contacting an outsourcing service provider to determine if outsourcing is the right solution for your business.

Time zone difference 

Communication can be quite challenging, especially if your outsourcing provider is on the other side of the globe. This issue can affect your daily business operations, especially if you are outsourcing time-sensitive tasks. Luckily, outsourcing companies implement shifting schedules to accommodate their clients’ time zone.

Language and culture barriers 

Another common challenge of hiring an international outsourcing provider relates to language and cultural differences. Although a vast majority of outsourcing providers employ English-speaking staff, you might have other requirements regarding communication styles or work culture that your offshore team will have to adapt to.

Both you and your outsourcing service provider have to make an effort to understand each other’s language and culture to make the partnership succeed. 

Hidden charges and compromising intellectual properties 

You might not be familiar with foreign laws and regulations, so take the necessary measures before signing the dotted line. Check if your outsourcing provider has committed any contract breaches in the past. Examine the contract and make clear the payment details to ensure there are no hidden costs.

Also, be aware of any concerns related to intellectual property rights – whether it’s your brand logo, product design, or business idea – before partnering with an outsourcing provider.

Security risks 

Outsourcing can also have security risks. For example, there is the risk of codes and other important data being copied or illegally shared for personal gains. That is why implementing safety measures are important such as limiting remote access to sensitive data. Likewise, check if the offshore data center service provider has strong security measures to ensure data safety. 

Work with an outsourcing provider now 

Outsourcing is one of the best business solutions you could adopt, albeit with pros and cons. On the downside, you have to manage time zone differences, potential security risks, and unwanted service charges. On the other hand, outsourcing companies offer lower costs, help businesses focus on their core processes, and provide 24/7 customer service outsourcing.

Before partnering with an outsourcing service provider, make sure to consider this list to decide if outsourcing is the best decision for starting a business

Author’s Bio:

Trevor Michael is a Customer Contact Industry Specialist of Select VoiceCom, an inbound call center with telemarketing and IT support services. He has operated successfully within this niche industry for over ten years across Australia, New Zealand, and Southeast Asia. He enjoys writing, golf, and going to social events.

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