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8 Key Factors To Consider Before Outsourcing

What key factors should consider a firm before outsourcing?.

Finding a reputable outsourcing partner is important if you’re planning to outsource your business functions. You can help your in-house team focus on your core activities and enjoy its cost-effective benefits. But when there are hundreds and thousands of BPO companies offering the same services with attractive pricing, making an outsourcing decision can be tough. 

Regardless of the type of product or service that you offer, this business strategy can help you achieve your company’s goals faster. Your outsource team can assist your in-house staff in ensuring effective business solutions, excellent working dynamics despite time zone differences, and more. 

Every successful outsourcing journey involves a critical decision-making process. And what’s better than creating a list of key factors to consider before you outsource your business processes to the right outsourcing service provider? Read more to learn about the factors to consider when outsourcing.

8 Factors to Consider Before You Outsource:

1. Expertise of the outsourcing firm.

Most outsourcing companies specialize in customer service and information technology. When outsourcing specific tasks, it is important for you to determine the expertise of a BPO firm before sealing the deal. If you’re outsourcing tasks like payroll and accounts receivables management, choose a service provider with an impressive background in financial services. The same goes for IT outsourcing. Working with a remote team with proven expertise and experience in specific fields can help you enjoy the many benefits of outsourcing your operations. 

Moreover, the quality of your services will also improve. With industry experts and professionals working on component tasks, your in-house team can focus on the core business processes that drive revenue.

2. Outsourcing costs.

70% of firms consider cost savings as the major factor that drives them into outsourcing their business activities. When you choose to outsource, you are getting rid of the financial burdens that are included in every business function. Letting your outsourcing provider handle the recruitment and training processes can help you save on labor costs. And outsourcing specific tasks can reduce operational costs, including utilities and work space rentals or acquisitions.

Cost is an important factor to consider if you are planning to improve other areas of your business. Adopting reliable and affordable outsourcing solutions can result in cost savings. If your outsourcing partner is in countries like India, Pakistan, and the Philippines, you can get good BPO services at lower rates.

3. Skills of the outsourcing team.

Another great reason why companies outsource is the easy access to global talent. Service providers may choose to hire globally competitive customer service agents, technical support specialists, account administrators, and IT specialists for your projects. Make sure to set clear goals that will match the capabilities of your chosen outsourcing team. Research about the things that they do best.

Do they excel in customer support? Are they capable of delivering top-notch IT solutions? You need to ensure that your remote team will be capable of performing based on the needs of your business and the demands of your clients. For example, your software development project needs a pool of IT experts to achieve all your project goals. Whether you choose to outsource or offshore your office functions, your remote team’s skill set will always be one of the many factors you need to consider.

4. Access to high-end technology and resources.

To optimize business operations, many businesses invest in the latest tools and software. Business process outsourcing is a highly technical business solution that requires upgraded software, advanced equipment, and new tools and technologies to maintain quality and efficiency. Making sure that your outsource or offshore team has access to the newest technology is crucial. 

In addition to CRM and call monitoring software, it’s important to consider the productivity tools and communication channels that your remote team needs. These include messaging apps, time tracking, and leave management and cloud-based project management software.

5. Efficiency of human resources department.

The human resources department plays an integral role in how your outsourcing partner will handle your business operations. Consider how the HR department handles recruitment, training, employee benefits, compensation, and resignations when deciding whether to outsource.

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The BPO industry is known for its high attrition rates. And while this fact could affect business owners’ future outsourcing decisions, more companies still want to outsource. Choose a service provider with good employee support and a healthy work environment to prevent staff burnout and mass resignations. A company that doesn’t know how to take care of its staff is a major red flag. So find an outsourcing company that has enough employees to perform various tasks effectively, and deliver business requirements on time. 

6. Risk management and data security.

Already found a company that’s a right fit for your business needs? It’s time for you to focus on the risks associated with every outsourcing decision that you make. Keep in mind that once you decide to outsource your business functions, you’re giving a third-party service provider access to sensitive information. Issues in data security have always been a deciding factor that hinders companies from outsourcing their functions.

A good outsourcing partner should be capable of providing long-term solutions to data breaches, leak of sensitive information, and violation of intellectual property rights. You should also be mindful of the legal considerations of data management among outsourcing contracts and projects. By doing so, you can mitigate risks and apply solutions that will not affect your relationship with your remote team. 

7. Service level agreement (SLA)

If you want to accomplish all of your outsourcing goals, you need to carefully review your SLA. A service level agreement serves as the “bond” between you and your service provider that states all the terms and conditions involved in the partnership. Here are the details that should be clearly stipulated in your SLA:

  • Agreement overview
  • Scope of work
  • Metrics
  • Remedies for breach
  • Additional costs
  • Additional services
  • Risk management and disaster recovery
  • Incentives and bonuses

For your SLA to be considered legally binding, it should be prepared by a licensed contract lawyer. Every change or revision in the original document must be relayed to both the customer and the service provider, with a lawyer present.

8. Seamless communication.

Meeting deadlines at work is easier if you have a smooth and stable communication channel to interact and collaborate with your remote team. Having solid channels can help avoid miscommunication and welcome more business opportunities for your company.

When the outsourcing company doesn’t communicate with its clients regularly, problems will be pushed under the rag, and more conflicts will arise. Besides investing in project management and productivity applications, it is crucial to consider implementing virtual team activities such as huddles and webinars to enhance collaboration and synergy within your team.

What qualities should a good outsourcing provider have?

Finding services with the best quality and value for money might be your ultimate goal. After learning about the essential factors to consider when making outsourcing decisions, you need to establish a good relationship with your vendor. The company you choose will be carrying the name of your business for the entire project duration. Hiring an experienced third-party service provider with a strong work ethic can help you establish your place in the industry.

If you’re curious about the qualities that you should look for in an outsourcing provider, here’s a simple guide to get you started:

Honest and communicative

Services like customer support and sales encounter different types of customers with different attitudes. Interacting with a wide range of people with diverse needs and demands can be quite challenging. Always choose a service provider who isn’t afraid to tackle these challenges. Constant communication can help you come up with effective and prompt solutions to problems. Whether it’s service or staff-related, make sure to understand how every situation could negatively or positively affect the flow of your business operations. 

Creative problem-solving abilities

Creativity is essential in any business, and outsourcing is no exception. Most businesses outsource to different vendors not only because of the cost-saving benefits that they could bring. Companies outsource because they need creative solutions to common problems related to customer service and technology. Since most BPO firms are equipped with the finest technologies and industry experts, they are capable of doing better market research. Better market research means more creative strategies for businesses in product and service design and analysis. These factors are just a few of the major driving factors that make businesses successful.

Ability to handle pressure

Outsourcing activities involve a lot of pressure. From hiring employees, training, and upgrading technologies, an excellent outsourcing provider must be able to handle all of these things. Major bottlenecks include meeting deadlines for complex projects, understaffed departments, or unforeseen circumstances. 

Your outsourcing partner’s ability to overcome all these challenges without compromising the quality of its services and manpower is a great indicator of its competence. And who doesn’t want a competent partner who can maintain grace under pressure?

Innovative and open to change

Achieving major goals requires significant efforts. But this doesn’t mean that outsourcing services can’t be fun. A great service provider must be capable of providing innovative solutions that create a fun and interactive working environment for your remote team. The human resources department can set up virtual and physical recruiting venues and organize activities for employees and applicants to enjoy. 

Also, don’t forget to discuss software and equipment upgrades on a regular basis. This can help your business keep up with the changing wants and needs of your client base. 

Passion for excellence

The quality of your partnership with your outsourcing provider should not end after sealing that deal and coming up with payment agreements. Working with a service provider with a high regard for excellence and quality can help you secure a competitive niche in the business. Passion for excellence translates into creative inputs, direct business initiatives, and proactive strategies. 


Now that you’re aware of the factors to consider before outsourcing, choosing the right service provider would be a lot easier. Outsourcing is a business decision that requires time, budget, and industry knowledge. Apart from the basics, business owners must search for a provider who’s capable of understanding all your business goals. Lower costs, advanced technologies, and a world-class talent pool can put you on the top of the game. 

Digital Minds BPO can help your business prosper and become more competitive with the range of services that we offer to our clients. We specialize in customer service, telemarketing, content moderation, and financial services. All of our outsourcing solutions come with affordable prices, so you can enjoy cost-saving benefits, friendly and highly skilled staff, and bigger revenue!

Begin your outsourcing journey with us. Contact us today for amazing BPO solutions, and build valuable and lasting relationships with your clients. What are you waiting for? Build your dreams with us. 


Contact us today to learn more about our business process outsourcing services.

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