Executive Boutique

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Business Process Outsourcing – Expectation Vs. Reality


We hear the word outsourcing all the time especially when we talk about business economics.   It has come a long way from being a foreign concept back in the ‘80s to now being a popular and winning business strategy.

By definition, we understand that outsourcing is the business practice of hiring a third-party company to perform services and create goods that were traditionally done by in-house employees and staff.

Outsourcing has helped companies boosts their efficiency while reducing operational costs. And the effect it has on the growth of our economy is exponential.

Common Misconceptions of Outsourcing

But even if we feel that we already have a pretty good idea of what outsourcing is and what to expect, companies who are considering outsourcing have a few misconceptions. Here are the common ones:

1. You will lose control of your business

Since outsourcing involves hiring a third party to perform specific tasks, for example, recruitment, companies may feel that they are handing over the reins to a stranger.

This is not the case, though because companies hire a BPO company to reduce the amount of non-value-added workload to the company. And non-value-added tasks are essential tasks but not necessarily core business functions.

So with outsourcing, you are actually in full control of your business and really owning it!  

2. Your Company Data is at Risk

By partnering with a third-party vendor, you share your company’s sensitive information.  

This is inevitable, however, but BPO companies take data security seriously. They adhere to strict security protocols and guarding all proprietary, and confidential information is of utmost importance to them and their top priority.

A survey carried out by Deloitte in 2016 proves that companies completely trust their BPO partners to keep their information safe. Only 23 percent of the respondents said that cybersecurity risks affect their outsourcing decisions.

3. It is Only Beneficial to Big Companies

A popular misconception – that only large companies benefit from outsourcing.

In reality, this is the complete opposite. Small businesses, including start-ups, are the ones in need; Because by outsourcing to BPO companies they get guidance and advisory services, not to mention support to their operations such as administrative tasks involving scheduling, data encoding; telemarketing and sales, research, call center, etc.

4. It is Expensive

Some companies perceive BPO services as only a cost. But in the much bigger scale of things, it is an investment.

Since outsourcing takes away administrative functions like Human Resources, Payroll and Accounting, it significantly reduces your expenses. The savings you get can be channeled towards core business endeavors instead such as expansion or innovation.

5. Your Quality is Compromised

Companies have misgivings about outsourcing to other countries. They feel that the end result is different from what they get if everything was done in-house.

BPO companies, similar to any regular company, strive for excellence. As long as you partner with a reliable and reputable company who have rigid quality control checks, there is no need to worry about poor quality being an issue.

What’s Next?

Executive Boutique is your reliable Philippine business process outsourcing partner. Our highly skilled agents and state-of-the-art facility can support your back office operations fully and achieve accuracy and expediency at a fraction of what you are currently spending.

Contact us today to find out more and get a free quote!

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