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Freedom to grow: Why more U.S. companies are choosing to outsource.

We recently wrote about the types of business processes companies outsource the most, but why are U.S. companies using business process outsourcing to meet their needs? Let’s take a look.

Offshore, Nearshore, and Onshore Options

You might be surprised to learn that outsourcing doesn’t necessarily mean moving operations offshore. While many companies do choose to tap into a global workforce, there are offshore, nearshore, onshore, off-site and on-site options. Sometimes U.S. companies outsource only the management component or outsource a portion of a process and keep operations in-house even though they’re technically outsourcing.

Ability to Focus on Core Business Operations

As organizations flourish, demands placed on back office staff grow. Time consuming and repetitive tasks place a serious drain on the existing team and building out these areas, especially if the existing processes aren’t being handled in an efficient way, divert attention from what matters most—core business operations. U.S. companies use BPO so they can focus on serving their customers and expanding the business even more. 

Improved Service

Imagine if 22% of your customers could not communicate with the representatives in your contact center. This is reality for companies that don’t offer bilingual customer service. Now, imagine if it took several days or even a week or more for incoming forms to be processed or letters to be routed to the appropriate department. Your company might be leaving money on the table, losing customers, or creating bottlenecks. This is the reality for companies that aren’t leveraging high-volume data capture, document processing, and mailroom services. Outsourcing key back office processes has the potential to improve service for your internal team and customers alike.

Reduced Operating Costs

Even companies that don’t choose outsourcing exclusively for cost are still concerned about the savings. By creating greater efficiency, eliminating redundant processes, and eradicating bottlenecks, companies have considerably lower operating costs.

Better Resource Allocation

When resources, including people and money, aren’t being needlessly tied up, they can be redirected to core business functions that will spur greater growth.

Solid Continuity Planning

Research from FEMA shows that 20% of larger companies spend more than ten days each month on their business continuity planning. That way, all their essential functions can still be carried out regardless of whether there’s an earthquake, flood, infrastructure failure, or other event. By comparison, 40-60% of small businesses never resume operations after a disaster. Quite simply, they aren’t prepared for the worst, and it results in very unfortunate outcomes. U.S. companies use outsourcing to address continuity. They may entrust their outsourcing company to handle all continuity planning for a specific process or they may simply leverage the power of outsourcing to spread processes out across multiple locations. If a location-specific issue occurs, auxiliary locations can accept the overflow.

Better Goal Setting and Measurement

How much mail should your company be able to process each day? How many calls should a representative be able to effectively handle in an hour? How many errors are acceptable in data entry? Most companies can’t answer these questions and quite a few don’t even attempt to monitor or assess the data. If you can’t measure it, you can’t improve it.

The next 18 Months is crucial. As U.S. companies, post covid, mitigate risk and reduce cost, the outsourcing deals will be many. Contact GroupBDO to help your company grow client acquisition here in the United States Marketplace. or 512-688-1931

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