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Go4customer Blog

Outsourcing 101: A Brief Guide

Posted by Shashvat

A few years back, if you ask business owners about their expectation from outsourcing, they probably point out attributes like performance, seamless operation management, and cost-effectiveness. 

Today, the notion of outsourcing has transformed altogether. With businesses of both public and private sector now looking to tango with ambiguous bottlenecks like dynamic customers’ expectations, economic volatility, and regulatory burdens, the expectations of company owners have changed.

BPO call centers of today offer a holistic array of services that cross the conventional expectations of affordability and operational excellence and are now focusing on attaining other assessable and impactful outputs like incremented sales figure, high customer & employee engagement, enhanced CSAT score, better value for money, and elevated market share.

Must Read: Top 4 Tips to enhance your Business’s Customer Experience Tactics

In other words, outsourcing has now become an instrument using which you can boost your business’s outlook and improve the shareholder value. A lot of organizations have accomplished impressive savings and have developed consistent growth model that is just not possible with an in-house facility.

Outsourcing: The definition

So, what is outsourcing? I know, there has been quite a few versions of outsourcing and sadly, none defines it clearly. Let me try now.


Outsourcing is the practice of reaching out to a third-party vendor to take over the handling of a particular business process from an internal workforce.

The reason for the popularity of outsourcing is that it yields enhanced productivity and higher effectiveness. Typically, a lot of extraneous tasks are being outsourced; the business functions that not core to your company but are necessary to be handled meticulously.

Read More: The Nitty Gritties of Call Center Outsourcing

In the past, businesses used to outsource the tasks that had no or least impact on the revenue of the company. Now, quality of service provided by the BPO companies decides the success rate of a business. Today, business owners are not hesitating to delegate functions like data processing, IT, marketing, digital, etc.

Outsourcing: Reality

A lot of business professionals and marketing experts make the mistake of considering outsourcing as a magic spell or a success mantra. They think that outsourcing can really transform their business into a successful venture. Let me spoil the picture for you. It is just not true!

First of all, as a business owner, you should have a clear objective and all the right reasons for outsourcing. You simply cannot decide on handing over your business functions to a BPO call center randomly. Wise business owners always look beyond the present scenario; they look upon the ambiguities and challenges that are associated with outsourcing. So, it is crucial that you keep realistic goals w.r.t outsourcing and have a prior knowledge of the benefits and bottlenecks that walk along it.

Companies that complain about the poor outsourcing results are generally the ones that haven’t researched or learned about the reality before handing over their business tasks. So, outsourcing is good for business if and only if you measure all your business requirements and set up a defined goal.

Outsourcing: 4 main benefits

The list of benefits that outsourcing and BPO call centers offer is quite long. So, I have decided to epitomize the 4 main advantages associated with the strategy of outsourcing. These are:

1.     An ace quality of service

Since a lot of BPO companies have emerged in recent times, organizations are choosing the business partner that cannot just reduce their operational costs but also offer a first-rate customer experience. The quality of service offered by the BPO call centers has raised automatically so as to attract businesses. Almost every call center has a quality assurance team and that is so because the game has now shifted from cost to customer.

2.     Improvised business process

No doubt, IT tasks are quite nimbly and easily handled by the BPO firms as compared by an internal team. Additionally, when you take a decision to outsource, it frees you to concentrate in an improved manner on the business functions that drive the revenue stream of your company. This automatically raises the overall performance of your business and related tasks.

Read More: How To Get More Sales Leads?

Ever wondered why the IT outsourcing sector is so strong? The answer is quite simple. It simply depicts that a majority of businesses are just unable or unwilling to run their IT functions effectively. So, as a business owner, it becomes your foremost responsibility to handover your IT-related tasks to a competent BPO call center.

3.     Leaving competition behind

Outsourcing solves the two most fundamental problems that arise with businesses; capacity and capability. When you choose to outsource, you leverage on the swift resource allocation; which means direct access to a competent team. With in-house departments, you just cannot step forward and acquire a brand without hiring or bringing in additional resources.

Also, BPO companies are continuously looking to pour in the capital in the ultra-modern equipment and processes. This results in the smooth running of the business process and better quality output that provides your business an edge over the competitors.

4.     Enhanced cost handling controls

This is no surprise. Companies that are outsourcing have experienced a stagnant 20% reduction in their operational expense. Although some of the people complain about the high cost incurred in the initial stages, the overall saving is quite phenomenal.

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