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20 Questions to Ask Before You Outsource: All the Questions You Need to Ask Before Signing That Deal

Illustration of people surrounded by question marks and speech bubbles featuring "Q" and "A". Text: "20 Questions to Ask Before You Outsource." Logo: Digital Minds. Perfect for those seeking essential outsourcing questions to make informed decisions.

No outsourcing journey is perfect, but every business owner and outsourcing service provider can make the outsourcing process a lot smoother. Apart from reviewing client testimonials and highlighting core competencies, it is always necessary for businesses and service providers to know which questions to ask when outsourcing. 

Many businesses prefer to outsource their services to effectively achieve their business goals and save time and money at the same time. But if you want to achieve a competitive advantage by tapping a reliable outsourcing provider, asking the right questions is the way to go. We’ve been in the business for quite some time, and we have enjoyed different milestones while embracing trends and modern approaches. Now, we want to help you kick-start your outsourcing journey by identifying frequently asked outsourcing questions that you might want to ask yourself and your potential service provider. 

In this list, you can expect to learn some of the most important questions about outsourcing that you should know and ask before signing that deal. The list includes questions you should ask about outsourcing to yourself and the right outsourcing questions to ask an outsourcing agency. Are you excited to know if that company is the right outsourcing partner for you? Keep reading. 

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Knowing which outsourcing questions to ask can help you discover the advantages and disadvantages of Business Process Outsourcing. 

Outsourcing involves time and money, and many companies build business relationships and valuable connections through outsourcing. But of course, just like other business decisions, outsourcing your activities also puts your organization at several risks. Having a clear understanding of it, the associated costs, as well as the competencies involved in the process can guarantee you high-quality outsourcing solutions. 

To understand outsourcing, preparing for the questions you want to ask is a crucial step. In this step, you will be able to identify all your business needs and determine whether you want to outsource core or non-core functions to a service provider. Having accurate answers to these questions will also lead you to a service provider that understands your company culture. Thus, identifying what you want and how you want things done is always a vital process. 

Before asking a potential outsourcing partner, it’s you who knows the answers you need.

So, you might think that the only set of questions you have in your mind is directed to your potential partner. But the truth is, before getting in touch with a third-party service provider, it’s YOU who knows the answers you need. As a business owner, it’s always your responsibility to assess the performance of your organization. It’s also an integral part of your business to put all processes in place, identify the service you need, and implement new strategies to stay ahead of the competition. 

With this, you are equally responsible for answering questions needed for you to take that next step towards business growth. Knowing when to invest and delegate tasks to an outsourced team requires longer consideration, and you have to think practically to keep things under your control. 

Top questions every business owner should ask to guarantee outsourcing success

Now that we’ve already tackled the importance of asking the right questions before a crucial business decision, here are the top questions about business process outsourcing that you can ask yourself and your possible partner. We have also provided answers to help you have substantial information about BPO and to decide whether it’s the ideal step for you. 

1. What is outsourcing?

Among the frequently asked questions about outsourcing is its definition. While the industry has been around for decades, many business owners are still hesitant to try it because of the confusion that surrounds its purpose. Basically, it refers to the process of tapping a third-party service provider to perform a particular task or business function. The said service provider could be a company or an individual that specializes in specific functions. 

To have a more comprehensive understanding of outsourcing, read this blog

2. What is an example of outsourcing?

If you want to help your company handle large amounts of files that need to be encoded in databases, you can tap a third-party service provider to assist you with data entry. In this process, you will give the outsourcing provider exclusive access to your databases as well as the instructions that should be followed.

Data entry is often outsourced by companies who want to secure data from important files such as e-commerce products, invoices, images, real estate documents, and even insurance claims. 

3. When is the right time to consider outsourcing?

This is a vital question to ask yourself. You might want to review all the aspects of your business, including your company size, your profit, and your future plans. If you’re a small business owner, you might want to evaluate the market demand for your products and services before you decide to outsource.

Can your in-house team still handle important tasks and activities?

Can you virtually interact with an outsourced team while still achieving weekly and monthly goals?

Indeed, the only one who can answer these questions is you, so make sure to think thoroughly. 

4. How can outsourcing help my business grow?

Many outsourcing companies swear about business growth and revenue increases for businesses. So, always go back to your primary goal and ask yourself in what way outsourcing can help your business grow.

Do you believe that outsourcing complex tasks can help you better focus on your core activities?

Will outsourcing your marketing attract new customers and retain old ones?

Determining the advantages that outsourcing can give to your organization is extremely important, and if you want to avoid its possible disadvantages, you have to answer this question. 

5. What are the common pitfalls of outsourcing?

Along with its advantages, outsourcing also comes with disadvantages that might hold business owners back. Naturally, entrusting some of your business’s most essential tasks to your outsourcing partner might leave you concerned about data security and confidentiality.

You might also be worried about losing complete control over your business operations. While there are effective and proven solutions to these common pitfalls, it’s always best to take these into consideration to minimize potential risks. 

6. Can outsourcing help me reduce costs?

Every business owner wants to save money. This is a fact. And one of the most common concerns about outsourcing involves money. Outsourcing companies always mention cost-savings as one of the key benefits of outsourcing that business owners can enjoy. But if you’re paying for the services of a third-party service provider, wouldn’t that cost a lot?

Illustration showing two men shaking hands, surrounded by text about Service-Level Agreements (SLAs), including definitions, benefits like accountability, customer experience, and common outsourcing questions.

This is where the importance of service-level agreements comes through. With a clear SLA, you will only pay for the services that you need without having to worry about the tedious recruitment, hiring, and training process. 

7. How much is the average outsourcing cost?

After determining how outsourcing can help your business, it’s time for you to know how much you should spend to get quality outsourcing services. The cost of outsourcing will depend on the types of tasks that you intend to outsource as well as the number of people that you need in your outsource team.

For example, if you’re outsourcing your call center in the Philippines, the average cost will be around $8 to $14 per hour. Other support services like bookkeeping typically cost $11 – $25 per hour. Note that these prices are still subject to change, especially if hiring a full-time team is needed to perform daily tasks efficiently. 

8. How did outsourcing companies change the industry?

Infographic illustrating key outsourcing revenue segments: Customer Service at 32.27%, Finance & Accounting at 27.27%, Human Resources at 21.82%, and Procurement & Supply Chain at 13.64%. Perfect for addressing common outsourcing questions and answers.

Sure, outsourcing has created an undeniable impact on businesses. But in what specific aspects do you believe it has changed the industry? Is it about the efficiency and quality of services? The increase in revenue and profitability? Or the cost-saving benefits? When you already see and feel the need to outsource, it’s essential to look at the bigger picture, and knowing how it can change the industry should be prioritized. 

9. Can outsourcing give my business a competitive edge?

Unbiased business assessment includes identifying when and where your organization hits or misses. Deciding to outsource some of your non-core activities comes along with an expectation of getting a competitive edge over other players on the field. Because let’s be real, what’s the point of outsourcing if it can’t give your business better leverage?

10. Can small companies outsource?

Certainly one of the most common outsourcing questions that business owners ask is whether small companies can, in fact, outsource. As we mentioned earlier, owners of small businesses must consider several factors prior to outsourcing.

Factors like product and service demand, efficiency of daily operations, and the expenses associated with these tasks should be carefully noted to ensure that you can come up with an excellent business decision. If you see and feel that you’re falling behind in terms of efficiency, it’s time for you to consider starting a nice outsourcing relationship with a good service provider. In fact, a good BPO company can make ways for small businesses to save money and enjoy a better market presence as well. 

List of questions you should ask your potential outsourcing provider

Now that you’ve decided to give outsourcing a try, let’s list some of the questions to ask your outsourcing partner

11. How long have you been providing outsourcing services to businesses?

Experience is something that can’t be faked. And if it’s your first time outsourcing, you know that a partnership with an experienced service provider is one key to ensuring successful outcomes. It’s also best to do your research beforehand and see the list of the top BPO companies that offer the best outsourcing solutions for all types of businesses. Each company has its own expertise and unique sets of industry experience, so you can have a better idea of what you can expect before signing that contract. 

12. Do you have feedback or testimonials from past clients?

It is normal for BPO companies to show solid proof of their past projects. Some name their clients, while others do it anonymously. Either way, try to reach out to their previous clients to make sure that they are marketing their expertise and experience in the field correctly.

While most outsourcing projects are bound by Non-Disclosure Agreements, a company that’s confident with the quality of its services won’t hesitate to present feedback and testimonials from its past clients. 

13. Can you provide me with a list of reliable references?

Similar to the abovementioned question, asking a potential service provider for reliable references is a must. Nothing’s more reliable than a company that’s backed up with favorable reviews from its past clients. Remember to ask for references in the most professional and polite way. 

14. What are your specializations and areas of expertise?

Text graphic listing in-demand job roles to outsource in 2024, including software developers, digital marketing specialists, and customer service reps. Consider vital outsourcing questions and answers when choosing IT support staff, HR professionals, graphic designers, and more.

Indeed, you will need the help of a service provider that excels in many fields. For example, if you want to protect the quality and integrity of your website or social media handles, you might want to consider outsourcing content moderation.

Sealing a partnership with a BPO firm that specializes in content moderation will lead you to highly skilled individuals who can do things efficiently and in the best quality. 

15. What are your rates? And what are the inclusions of each rate?

With every service comes a cost. And for as long as the cost matches the quality of service, it shouldn’t be a problem. Asking your potential service provider about the rates for services you need is essential because you’re allotting time and money to outsource a specific task.

It’s also practical and completely reasonable to ask for the inclusions of each rate: Who’s going to provide the equipment/software? How many people should be hired? What would be the working arrangement? These are just a few of the many important things that your service provider should attach with that pricing quotation and breakdown before jumping to the deal. 

16. Can you provide me with a sample agreement and terms on specific tasks or projects?

Agreements and contracts are basically the heart and soul of every outsourcing project. It is just appropriate that a sample agreement is included in the proposal presented by an outsourcing agency. While reading the agreement and terms, make sure to check for important things such as pricing, contract inclusions, management and control, and policies on sensitive data and intellectual property. 

17. What are some of your security measures and protocols?

Along with control and management issues, data security is one of the most critical areas of outsourcing. Making sure that your outsourcing provider has stringent measures and protocols in regard to your business data is an excellent way to protect your business. This step is also one way to develop trust and establish a pleasant relationship. 

18. Are your in-house employees skilled and trained enough to handle important tasks?

When you’re outsourcing important tasks, you only want the best to perform them. You can always ask about a BPO company’s hiring and training processes to make sure that they are capable of delegating tasks to skilled individuals. 

19. Would it be possible for you to hire more people with experience and expertise in case the project demands it?

Higher product and service demand means busier days and busier days could mean a higher need for manpower. A competitive BPO company knows how to expedite hiring and recruitment processes to achieve organizational goals. If a service provider is struggling with hiring, it might not be the best partner for you. 

20. How do you utilize artificial intelligence in coming up with an effective outsourcing strategy?

AI is constantly making waves with its contribution to the efficiency and success of businesses. So, it will be amazing to have an outsourcing partner who knows how to properly and effectively utilize AI and gain a competitive advantage for its clients. Don’t forget to ask your potential outsourcing partner about the strategies they could derive from AI and see how those could bring benefits to your business. 

Get in touch with Digital Minds BPO and meet your future outsource team. 

Asking questions is a proven way to start valuable relationships between businesses and outsourcing providers. Now that you are already aware of the most important questions that you need to ask, you’re all set! 

Enjoy better leverage and meet the most competitive outsourcing team to help you with your business activities. Digital Minds BPO offers an impressive array of services and solutions for businesses to stay on top of the game. From customer support and marketing to data entry and content moderation, we help companies deliver the highest quality of services at incredibly affordable rates. 

Contact us today. Ask questions, and we’ll be more than happy to serve you. Let’s go and start building your dreams!