Keeping a competitive edge in today’s business world is difficult, especially with the high costs of labor, technology, and marketing. Outsourcing core business processes is a way to reduce risks across the company while keeping costs in check and laying the groundwork for sustainable growth. Outsourcing, or hiring third-party consultants for help, is most beneficial when it’s done in a strategic way where expertly trained professionals are leveraged for certain functions, instead of hiring strictly in-house employees. This gives organizations an edge because they can get access to advanced equipment and professionals with a specific skill set much more cost-effectively. Many outside consultants today also allow flexible pay-as-you-go models which can help organizations remain agile and more geared toward achievement and growth. Whether back-office tasks include data entry, call center management, partner management, payroll or IT services, there is a market of specialized recruits readily available, if organizations know where to look.
Entrepreneurs thinking of hiring specialists for certain tasks should be careful however to assume all vendors that offer this service are created equal. Many agencies focus on a specific service, such as IT integration or payroll. There are also some companies that employ offshore professionals. These scenarios can add a layer of complexity that can be cost-prohibitive, unproductive, or hard to manage. Let’s take a closer look at why keeping outsourcing domestic can help improve productivity and keep costs in check.
- Don’t underestimate soft skills- While hiring offshore firms to help with certain back-office tasks is still a very large market, the domestic outsourcing market is also growing in several areas. According to the Everest Group, the practice of hiring domestic consultants has picked up steam over the last five years and is growing between three and 20 percent each year, depending on the function. Many experts believe this is because many tasks require local business knowledge, dialect or certain levels of cultural understanding. (Source: CIO). Don’t underestimate consultants’ need to have those inherent soft skills as well as knowledge of purchase behavior, local culture and domestic business practices. Having this inherent skill set will help businesses understand customers and communicate more effectively. Whether an organization is remotely troubleshooting, fulfilling orders or coding, often a hiring help from a domestic consulting team can be an incredible asset that requires less micromanaging.
- Navigating regulatory environments- While compliance management is not a revenue-generating business function, we all know it is equally important because it can significantly reduce enterprise risk and lower the cost of doing business. Because it’s so important before an organization decides to hire outside consultants to help with compliance management, it should clearly lay out the objectives (i.e. filling a skills gap, expert advice, lowering costs, specified time commitment etc.). This exercise will help enterprises understand to what extent certain functions should be kept in-house vs. those tasks that can be managed by a third party. In several industries such as financial services, biotech, and fintech, regulatory scrutiny has increased significantly. As a result, the skills required for effective compliance management are changing and becoming more complex. They require legal expertise, analytical skills and specialized project management talent. In these cases, the high costs of training compliance teams on current domestic, industry-specific regulations may outweigh the benefits of going offshore for help.
- Cultivating brand loyalty- It’s important to keep in mind that in a domestic outsourcing scenario, consultants may have a greater opportunity to interact with products, the company brand and company managers. This puts the agents in a better position to advise customers on product or service selection and to assume more of a supportive and consultative role in working with customers. This approach can go a long way in improving customer satisfaction and ensuring a positive customer experience. In addition, having specialized agents that are near product managers and the corporate headquarters may help to synchronize corporate messaging and solidify the corporate brand. Consultants that are near the corporate headquarters− as opposed to across the ocean− will be more equipped to highlight the best aspects of the brand’s personality. Done right, this can boost brand awareness and cultivate customers for life.
Organizations looking to cut costs, improve customer relationships and focus on core business activities should consider domestic outsourcing as a strategic alternative to hiring agencies that contract out positions offshore. An investment in a reliable partner can pay dividends with a well-trained staff that’s accessible, more compliance aware and effective communicators when it comes to delivering customer care and solving problems quickly.