Outsourcing Non Core Activities Saves Time And Money

Your business can save time and money by outsourcing non core activities to other providers. The savings can come in a number of ways:-

  1. Efficiency - the outsourced provider will be an expert in their field and therefore know how to be cost competitive and efficient.

  2. Working Capital - if you have a workforce doing your administration you'll be paying them immediately. If you outsource you will be able to negotiate credit terms, certainly 30 days and possibly 60 depending on how commercially attractive you are to the outsourced provider.

  3. Cost Of Labour - none of us like it, but it's a fact of life. With all the modern communications systems nowadays you don't have to be based in this country to do an admin job. Outsource to a country where the cost of labour is cheaper.

  4. Focus On Adding Value - the most strategic reason to outsource is to take the problems away and allow you to focus on the activities that truly add value and put money in the bank.

Having talked about the benefits of outsourcing non core activities there's one key area of concern that gets talked about a lot and that is the loss of control. Many businesses believe that by outsourcing to a third party they will have less control over that third party than a team of employees.

It is open to debate of course but I believe that outsourcing the activity doesn't mean outsourcing the responsibility. You need to manage a third party provider just as you would a regular employee or team of employees. That means following the same magement processes of agreeing minimum standards, performance targets, measurement of results and taking the appropriate action according to whether the targets have been met or not.

You tend to find that most of the businesses that argue negatively about loss of control generally have in the past had an experience (or know of one) with a third party provider where the management processes were not adhered to.

Of course you can't expect a third party provider to be loyal to your company like an employee would be, can you?

It's a fair point that any third party business is going to have a different set of objectives to your business (ultimately their own profit is going to be one of them) but understanding the corporate values of the third party during the selection process can go a long way to ensuring that the most suitable partner is selected for the long term.

Call Centre Outsourcing - Nexus Teleservices is an offshore multilingual (English, Spanish and Portuguese) outsourcing provider of traditional call-center services.

Outsourcing Non Core Activities Saves Time And Money

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