To cope with rising demands and workloads, many small business owners are experimenting with outsourcing their company’s needs to a third-party organization. The Business Process Outsourcing (BPO) business has expanded quickly as a result. Cost savings, better flexibility, increased productivity, and access to specialized personnel are just a few advantages of outsourcing. But, you run the risk of making the typical errors that most outsourcers make on their first attempt. Let’s check common mistakes to avoid when outsourcing back office services.
Prioritizing cheaper labor
Saving money is one of the main motivations for outsourcing corporate operations. It is crucial to remember that the lowest price will not always be advantageous eventually. Finding the correct offshore or outsourced staff is equally crucial. The entire objective of outsourcing may be defeated if you outsource with the sole intent of reducing expenses, since you may compromise on the quality of the labor.
You can therefore concentrate on the other significant advantages of outsourcing rather than just following the vendor rates. This comprises specialized expertise, greater adaptability to achieve your objectives, expanded capacity for key skills, rapid scaling capabilities and others.
Outsourcing without assessment of budget and needs
You need to concentrate on the methods that would produce the best results in accordance with the demands and specifications of your firm rather than assigning a random task. For instance, you can assess your requirements by asking yourself the questions below:
- Does my company currently have the resources to outsource?
- Which areas of my business must I outsource?
- What are the financial capacities of my company?
- How will I incorporate the contractors or freelancers into my business?
While dealing with a back office outsourcing company, these queries will provide clearer guidance on the best outsourcing procedures for your business and how to move forward with them.
Skipping the procedure of interview
Establishing a strong foundation for the work quality and services you anticipate from your provider begins with choosing the correct outsourcing partner. So, you risk passing up some great talent if you only rely on your background investigation and skip conducting multiple interviews with vendors or applicants. Furthermore, unless you speak with a potential outsourcing firm or freelancer directly, you cannot determine whether they are a suitable fit for your organization.
Selecting the outsourcing partner without detailed research
The majority of outsourcers will just consider a candidate’s general background when recruiting them, yet that is insufficient.
Here’s an illustration:
If you are outsourcing an accounting position, you will seek out a candidate with financial experience. For quality back office services, an outsourced candidate should, however, possess a solid set of soft skills as well, including good communication, time management, and problem-solving. Hence, it is important to consider several important aspects that could influence your decision-making.
You might wish to think about the following inquiries:
- What level of domain expertise possesses your outsourcing candidate?
- Do they have the necessary experience for the precise position you are outsourcing?
- Share your organization’s basic values, beliefs, and company culture with the outsourced partner, too?
- Do they have many loyal customers? That might indicate a low turnover rate and effective client-vendor collaboration.
Next, make sure you evaluate the vendor’s past performance by looking at customer reviews on various platforms. Deciding based on this knowledge can help.
Neglecting security protocols and data safety
Businesses that outsource their business activities must provide sensitive company information to a third-party vendor. Additionally, because inexperienced outsourcers sometimes concentrate on lower costs or less expensive labor, they could forget to ask about the data security or safety standards.
Before employing a back office outsourcing company, you must, however, find out about their data security procedures; otherwise, your organization’s data could get into the wrong hands.
One approach to doing this is to confirm that your vendor has an IPS or Intrusion Prevention System to guard against malicious internet traffic and protect important company data. Also, you can list all the crucial security protocols that your outsourcing provider will need to follow and include them in the service contract.
Not having specific onboarding procedures in place
The significance of integrating the external vendor within the project is sometimes overlooked by enterprises. If they lack the knowledge or tools needed to launch the project, the outsourced staff may feel lost as a result. So, whether you are outsourcing to a firm or a freelancer, never let them handle the project on their own.
Setting up a knowledge base that independent contractors and others hired outside help can utilize to master all job processes is one approach to do this. For your larger workforce, you can also hold offline or online training sessions.
You can also take steps to improve communication among the members of your internal and contracted teams. This will encourage peer learning and make it easier for the contracted staff to comprehend the job procedures. For instance, if you employ an external project manager for your remote team, make sure to inform them of the work culture, procedures, standards, tools, etc. at your organization. After a smooth onboarding process, your outsourced employee will be able to quickly integrate into the team and work together.