Over the last two decades, business process outsourcing has been incredibly popular. There is growth of call centers in the Philippines, Malaysia, Brazil, and other parts of the world. It has been an effective strategy for businesses to delegate a certain task to another company, thus helping each other gain profits. Businesses from Fortune 500 companies to solopreneur startups hire freelancers to perform operational tasks. Outsourcing refers to contracting standard business functions to third-party providers or remote workers. These functions commonly include accounting, administrative works, customer service, payroll, sales, and technical assistance.
The key reasons for such a boom in outsourcing are the cost-effective, efficient, and pro-active services provided by outsourced professionals. Yet, there are also challenges when shifting to back office outsourcing solutions. Below are the top dilemmas a business owner may face when outsourcing.
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Business Process Automation
A common question when outsourcing business processes is how to automate them. Automation reduces the time of performing repetitive and routine tasks. It has little room for human errors when it comes to data-intensive processes. Even if you are hiring an expert in different fields, business owners need to put online tools in place. This is where the dilemma starts. With hundreds of online tools available, it may be hard to choose the best one that can serve your needs. As such, purchasing or registering for the use of these tools becomes a trial-and-error option. The best way to avoid such a dilemma is to do research. Just like choosing the best applicant for your outsourced position, you need to carefully assess which is a good fit. This you can do by comparing the features and reviews of such automation tools.
Data Privacy and Security
The privacy and security of information are a top concern in the digital world. Even big tech companies Facebook, Microsoft, Yahoo, etc. have once been hacked. When a business owner outsourced operational processes, this is one dilemma that he or she may face. Building a remote workflow creates new opportunities for cybercriminals. They are at risk of data breaches, malware, phishing, viruses, and similar threats. The best way to avoid such a dilemma is to update account passwords from time to time. Make the password a robust and strong code to protect the account. You may also consider using blockchain technology for safe data storage. Encrypted messages and the use of a virtual private network (VPN) can also help.
Talent Shortage
Majority of businesses now outsource talents. Most of the Fortune 500 companies offer very attractive packages to attract the cream of the craft. Outsourcing can be very helpful if you find the best of the best. But one dilemma of today’s business owners is the shortage of talent pool to fill the position they need. A clear solution to this dilemma is to outsource hiring itself. Many third-party vendors can help you look for the right talent that fits your outsourcing needs. They can do the background check, interview, and job matching for you. They also have a large talent pool where you could choose from.
Changing and Uncertain Business Environment
Nothing in the world is permanent but change. Especially now where technology constantly and quickly evolves, business settings need to adapt to changes from time to time. Another dilemma of a business owner who outsourced services is how to deal with the changing and uncertain digital environment. Sometimes, this results in a decrease in productivity. Employing online collaboration tools is the best way to resolve changes and uncertainties. By regularly keeping in touch with your employees, you can very well explain how new tools are used and how important they are. By being transparent, you can get their full support in doing the extra mile for your business.
In the end, despite the dilemmas that a business owner may face when outsourcing, it will help a business grow and scale.