Human resource consultancy firms are just outsourcing vendors. Most of these companies offer services for back office operations. The most common type of outsourcing companies are call centers. When done properly outsourcing will ensure your company’s growth and development to the next level. There are a number of advantages to outsourcing despite the usual financial gain.
What is Outsourcing Anyway?
Outsourcing is the process of one company contracting and doing business with another company to provide services that might otherwise be performed by in-house employees.
During the stage where a company is undergoing rapid growth, back office operations do expand in kind. This expansion inevitably starts to consume resources at the expense of core activities that propelled the company to this stage. Outsourcing of the back office operations such as telemarketing services and data entry allows the company to refocus on its core values without compromising the quality and service of the back office.
There are some back office operations, such as data entry or accounting that are complicated. The size of your company may not allow you to have these operations work at a reasonable cost or effectively. Outsourcing these services ensures that you get specialized services at a reasonable cost.
Example: a small clinic that has only one clerk who cannot keep up with the variety of insurance plans of the patients. Outsourcing to a firm specialized in medical billing will be very beneficial.
Overhead costs for back office operations are usually staggering. Outsourcing ensures that your company spreads the risks involved with that particular back office operation. This in turn provides the company with the impetus needed for further growth.
Over time departments in an organizations, start becoming complacent. Outsourcing their functions ensures that better management and services are provided. Since the outsourcing company is an independent entity, which can be hired and fired at will, the result will be a more effective outcome at a lesser disposition.
Example: an call center with too many projects and inadequate personnel, and with a budget that exceeds its productivity. A contracted outsourcing company will offer better-controlled services.
Outsourcing provides the company with options when tackling issues such as cyclical demands. A company will outsource such activities when the demand arises, and release the contract with the outsourcing company when the demand subsides.
Example: during tax season, an accounting department that is understaffed can outsource its activities, and release the additional staff when the season has passed.
Periods with high employee turnovers brings with it uncertainty and inconsistencies to operations. Outsourcing the departments with high turnover ensures a semblance of stability is achieved and the quality of services offered is not affected.
Due to the specialized nature of outsourcing companies, they usually bring additional knowledge to in house staff without extra cost. This is true, when a company has a big project but is understaffed. Out sourcing to a specialized company ensures that your staff, learns the latest industry trends without enrolling to seminars and what have you.
Customer service is very important to any organization. Outsourcing these operations to call centers ensures that an organization has a round the clock customer service available to its customers. This also helps the company to have interactive relations with its customers. With this comes improved productivity and service provision.
In today’s world, there are rapid technological changes in any industry. Outsourcing departments such as Information technology and research, ensures that the organization is up to date without disrupting the day-to-day operations of the company.
Despite the recent time controversies associated with outsourcing as a business, practice is on the rise. More and more companies are drawing plans for outsourcing. With back office operations such as telemarketing services, it is important for organizations to hire specialized companies that can ensure better performance, effectiveness and increased revenue.