Is Outsourcing Good or Bad Approach: We Know the Answer
Blog Post

Is Outsourcing a Good or Bad Choice for Your Business?

Outsourcing is hailed for its cost-saving benefits, access to expertise, and operational efficiency. Yet it comes with some drawbacks, such as loss of control or communication issues. That’s why it all depends on the industry and the tasks you need to outsource. And, for your particular business, do you think outsourcing is good or bad?

Let’s explore its major pros and cons so that you can further make an informed decision for your particular case.

Why Is Outsourcing Good?

  • Cost savings: Outsourcing can reduce operational costs by up to 60%, enabling businesses to allocate resources strategically. (Source: Deloitte)
  • Access to expertise: Leveraging external specialists allows you to tap into a diverse talent pool and gain access to niche skills. You don’t need to have a team of experts within some narrow industry, it’s easy to outsource them.
  • Scalability: Outsourcing provides the flexibility to scale operations up or down based on demand, minimizing the risk of overstaffing or underutilization. Said differently, on Black Friday, for instance, our customer support team can include 15 agents, and during low seasons, one or two agents. And you will pay only for the agents you are currently working with. Of course, you can do it internally. But if you don’t outsource, you need to hire 15 agents and fire 13 later. That’s why e-commerce companies prefer to outsource their customer support. This way, their clients remain satisfied regardless of the time and day.
  • Focus on core functions: By outsourcing non-core tasks, your team can prioritize core functions, driving innovation and growth, while your outsourced provider will take care of all the routine and boring tasks. That means, no more data entry or refund issues, for instance. Got hiring, training, or onboarding concerns? No worries, WOW24-7 will take care of that, while you can prioritize your business tasks.

So, it does have many advantages. But let’s be honest, outsourcing comes with some disadvantages as well. Let’s take a closer look at them.

Why Is Outsourcing Bad?

  • Loss of control: Entrusting critical processes to third parties may result in a loss of control over quality and decision-making. But that is not the case with WOW24-7. We have a special department that is responsible for control and quality assurance. We provide our customers with the control they need while taking care of everything they don’t want to be involved in.
  • Communication challenges: Cultural and language barriers can impede effective collaboration and lead to misunderstandings. Choose a partner that will be with your customers when they need assistance. Almost all our customers need to cover holidays and non-working hours to make their clients satisfied.
  • Data security risks: Sharing sensitive information with external vendors raises concerns about data breaches and confidentiality.

That’s why it is important to choose your outsourcing provider seriously. Just for the record, we take privacy and security seriously and have the following security certification: ISO 27001, ISO 9001, ISO 27701, PCI DSS, as well as GDPR, and so on.

Key Takeaways

Cost reduction and operational efficiency are the key reasons why companies tend to outsource.

But, it’s essential to assess its suitability for your business context. Consider outsourcing the tasks where external expertise can add value and drive efficiency. For instance, if you are an e-commerce company, you will definitely need help during seasonal spikes.

However, retain control over mission-critical functions that require in-house expertise and oversight.

It’s worth noting that outsourcing has already become the norm with 77% of customer service leaders outsourcing to reduce costs and achieve greater scale (Source: Gartner). The main idea here is to find the right partner that adds value to your business goals, improves efficiency, and takes security seriously. That is how you get the possibility to increase your revenue.

Contact WOW24-7 today to improve your bottom line!

  • Olha Fediakina
  • March 12, 2024
  • 1:35 am

Let's Discuss Your Business Model To Find The Best Solutions

Book A Call