It is no secret that globalization is a popular strategy to grow a business. Africa in particular is a top choice for any company seeking BPO/outsourcing services. The continent has an abundance of qualified individuals ready to take brands to the next level but many business leaders have no idea where to start this article will surely help!
What Is Outsourcing?
Outsourcing is a business practice where a company contracts third parties to carry out certain business functions and the businesses to which the services are outsourced are referred to as business process outsourcing company/s (BPO). Outsourcing can be local or international usually associated with business functions like customer service, SEO(Search Engine Optimization), IT, Human resource management, accounting services, and the like.
The 3 Types of Outsourcing
1. Onshoring
Onshoring refers to the relocation of business processes to a local area within the company’s national borders. It typically involves relocating activities to low-cost non-metropolitan areas. This practice promises low costs, quality guarantees, IP protection, and better cultural cohesion. However, onshoring has disadvantages such as increased labor costs, loss of global presence, high operation costs, and less access to specialized workers.
2. Nearshoring
Nearshoring is a business strategy where companies shift their business processes to areas close to their main market or headquarters. These firms are usually seeking highly skilled staff hence the popularity of services like nearshore software development outsourcing.
This business model has several advantages such as lower transport costs, helping oversee operations more effectively, improved communication, increased IP protection better cultural alignment, and faster delivery. However, costs may rise over time, logistical problems, and language barriers.
3. Offshoring
Third is offshoring, which is when companies transfer operations from developed nations to less industrialized countries. The main reason for offshoring is to lower operational and labor costs. Still, it also helps companies reach new markets, cultural diversity, lower risk, and access to a wide pool of experts. Disadvantages to offshoring include a negative image due to the loss of local jobs, issues with payroll and compliance, quality control challenges, operational inefficiency, and lower control.
Your company may choose to implement any of these BPO outsourcing strategies depending on the availability of resources, budget, and needs. For a more in-depth look at why you should consider BPO companies, check out our other article.
What Are The Most Outsourced Jobs?
1. Customer service
Customer service/customer support is one of the most common BPO contracts. For decades, companies outsource support for customer queries, complaints, follow-up on payments, and more. BPOs not only handle different sectors, but they are also familiar with both local and foreign languages.
2. Sales
Lead generation and online sales campaigns can help your business reach a wider audience. This is because physical selling can only cover a certain area, but online selling can reach an international audience and generate more sales. The internet has also made this more feasible hence the push for sales BPO.
3. SEO
SEO experts can help your brand achieve global recognition by making content that appeals to humans and conforms to search engine best practices. Even if you do not sell consumer goods, an SEO-optimized internet presence can familiarise the public with your brand leading to more opportunities. Investing in an SEO expert is a worthwhile venture that will yield results for your firm!
4. Software Engineering & IT
Due to the nature of software engineering, it allows for working remotely, making it easy for businesses to outsource. The availability of collaborative software like Zoom and Microsoft Teams also makes it easy for teams across the globe to collaborate on software development projects.
5. Accounting & Tax Compliance
Accounting largely deals with numbers and involves systems to maintain financial records. Organizations may prefer outsourcing accounting, taxation compliance, and audit services from a BPO to reduce their cost. This ensures a profit margin increase while still maintaining the seamless flow of operations.
6. Mobile App Development
Much like software engineering and IT support, a gaming company can hire app development experts from across the globe with ease. Using a diverse team can also help make the final product palatable for different demographics.
7. Digital Marketing
Your business can grow with the help of a digital marketing expert, who can help grow your brand through campaigns and represent your firm successfully.
8. Social Media Management & Content writing
A well-managed social media presence can expose your firm to new clients and enhance your brand. There are plenty of skilled social media managers who can ensure your pages remain up to date and use trends to ensure your company remains visible. Writing engaging content can set you apart from the competition. This is because engaging and informative draws in readers and encourages sharing across social media platforms, which can boost your brand.
9. Human Resources
Outsourcing HR can ease operations and make it easier to serve your employees. Also, most HR processes involve globally recognized software so you can always find someone well-trained in your HR program of choice.
10. Graphic Design
If you run a media agency and would like creative designs to communicate and market products, you’ll need a graphic designer. Outsourcing these services ensures a reduction in operation costs while ensuring deliverables are met.
11. Data Analysis
A data analysis expert can help you better make decisions for your firm. This is especially important if you plan on expanding into new markets, as you will need information on demographics, preferences, and income as they relate to your product or service. To get timely and thorough results outsourcing these services can assist.
Frequently Asked Questions
1. How does outsourcing work?
To outsource a service identify a BPO company that can meet your business’ needs that you would like to partner with. You may also need to conduct regular audits to see if business goals are being met. Some considerations include location, costs, availability of skilled labor, quality guarantee, and more.
2. How are outsourcing and offshoring different?
Outsourcing refers to delegating business processes to third parties such as independent contractors or companies while offshoring describes running certain business processes in other countries.
3. Does outsourcing save money?
Yes! It saves companies time and money since they delegate these duties to experts. Moreover, it reduces costs in terms of human resources, technological costs as well as operational costs in general.
In Conclusion
Outsourcing offers companies the chance to save costs and focus on their core business while also ensuring quality standards are met. Consider consulting and partnering with a business process outsourcing company and grow your business!
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