Outsourcing helps organizations close internal talent gaps and meet business needs cost-effectively and strategically. And by freeing up internal resources, it enables teams to zero-in on core business activities, whether that’s sales, client service, or planning. By leaning on an outside specialist for back-office tasks or assistance solving a complex problem, companies can benefit from streamlining internal processes, improving efficiencies, and delivering a high-quality product to customers in the most efficient way possible. Conventional wisdom has told us that the most profitable way to outsource is to look overseas and engage foreign contractors where the cost of living is less. However, digging deeper reveals that there’s much more to consider when evaluating outsourcing than comparing hourly wages. The total cost of working with an outside partner includes factors like training, language barriers, time-zone challenges legal fees, and issues that can hinder collaboration and fuel efficiency. With these sticking points, it’s no surprise that leading companies are rethinking domestic outsourcing as a strategy for long-term growth.
- Premium-branding- While we often think of industries such as manufacturing, application development, and customer support as offshore activities, in the last few years there’s been a resurgence in these areas in the US. Take for instance Apple’s opening of a new facility in Austin, TX in 2014. The Austin facility is manufacturing the Mac Pro, among other products. There’s also Elon Musk’s New Tesla Gigafactory where his team is completely re-investing manufacturing principles. In doing so, they are hoping to create a 5-fold increase in manufacturing output to produce batteries. Today, it’s also not uncommon to hear organization’s tout their US-based customer service or technical support personnel. By building a culture around delivering great service domestically, companies are finding ways to stand out and differentiate themselves as a premium brand.
- Eliminating extra costs and barriers to communication- When looking for consultants to help with special projects or for on-going support, organizations should first evaluate the investment and the expected benefits of the service provider. The hidden cost to consider in this evaluation can come in the form of language barriers, the lag time in communication, time zone challenges and gaps in collaboration efforts. It may be challenging to efficiently communicate new messaging, or tactical elements related to customer or product support, for example. Additional time and effort required to manage these ‘barriers to communication’ can add extra expense to the total cost of the outsourced engagement. And, these challenges may inadvertently slow response times and become a detriment when implementing the new plan or taking advantage of new opportunities.
- Hands-on training- A local partner can also simplify training efforts. Without travel expenses, companies can provide hands-on, in-person training to ensure agents are well versed in product messages, features, and benefits. Or if there’s a new product or service release, or a new CRM system or order management system is implemented, teams can be brought up to speed very quickly. A domestic outsourcing partner can provide simplified and quick access to multiple professionals with specialized skills. A skilled workforce allows organizations to be more nimble and jump ‘all in’ when new opportunities arise.
- Protecting data security and intellectual property- Leading companies often look for external assistance managing everything from customer service and support to legal services and data analytics. In all these cases, highly sensitive corporate and customer data is exchanged. And, in today’s environment, in the era of the Dark Web and sophisticated cyber-attacks, it’s become even more challenging to protect customer data and corporate intellectual property. Breaches and cybersecurity not only cause distrust among customers, but they also put C-level executive at risk. Look at Under Armour for instance. Shares dropped 3.8 percent after the active-wear company informed users their data breach. Corporate leadership is also under increased scrutiny when leaks occur. Equifax CIO and Uber’s security chief were both let go after their massive data breaches. While a local partner won’t immunize companies from threats, U.S. laws are inherently more secure than working with citizens of foreign countries. Look for domestic facilities that have comprehensive data security safeguards in place.
If your organization is looking to improve scalability and to focus on core competencies like product development and sales, outsourcing can be a tremendous advantage. Finding the right partner may mean looking closer to home. Many companies that work with a domestic outsourcing specialist are finding partners to be more accessible, highly trained and effective communicators, helping produce a premium brand identity.