Day: August 28, 2023

Call center outsourcing has several benefits for businesses to enjoy. However, outsourcing to a call center also has potential hurdles. You need to know what all of these are before you decide to try it out. You will also want to know what the costs are like. Yes, you can definitely save a bunch, but you need to make sure it’s worth it in the long run.

How Does Outsourcing Work?

Outsourcing means the process of one company handing over work to another company. This includes passing the responsibility to plan the work and execute it according to an agreed upon standard. This work could actually be done internally by the first company, but they prefer to let another company handle it. Usually, this decision is made because they can get top-rated services from candidates without having to be part of the selection, hiring, training or managing processes. This hands-off approach gives the company more flexibility as it increases efficiency and reduces costs. Mostly, this is due to more strategic human resources and the absence of overheads. 

In a nutshell, the hiring company tells the outsourcing company what it needs. Then the outsourcing company provides the right candidates. The hiring company pays the outsourcing company and receives the completed work.

Outsourcing Customer Support

Inbound and outbound call center outsourcing has been the go-to for many companies. This is especially true in the area of customer service. 

Benefits of Call Center Outsourcing

Service Expertise 

Outsourcing call center tasks gives you the added benefit of expertise. Call centers provide such services to many other companies. Over the years, they have gained a lot of experience. Moreover, they are sure to keep their service offerings up to date because they have to please all these clients. 

Outsourced call center work means you can provide your customers with top-notch  customer support. Business Process Outsourcing companies (BPOs) focus on giving companies specialized agents using updated technology and data. Unless you have customer service expertise, inbound and outbound call center outsourcing is your best option. 

Of course, you can hire your own freelance team of customer service experts. With this option, however, you will need to manage them in-house. 

Done for You

Outsourced call center work frees up your company’s time and talent. All you do is tell the outsourcing call center what you want done, and they take care of everything. You don’t need to do any hiring tasks like searching, recruiting, interviewing, onboarding, or training. You don’t need to manage anyone, either, or deal with disciplinary matters or terminations and the like. This way, you can all focus on what you do best to get the best results for the business.

Cost Savings

The outsourcing call center cost you will pay is usually much lower than hiring in-house. This is especially true when you do outbound call center outsourcing to countries like the Philippines. This takes into account, of course, the quality of the service that these countries can provide. Namely, you want agents who speak your language fluently, know your business and the industry, and other specialized knowledge in the customer service field.

Most notably, outsourcing call center cost savings come in the form of non-existent recruitment and management costs, equipment, and overheads. This is a huge help when you are trying to reduce operating costs as much as possible. 

As part of management costs, we must mention scalability in particular. Outsourcing call center costs drop significantly when you can make changes instantly. You can scale up or trim down your customer service support team when demand changes and not have to worry about severance packages, retraining, etc. 

One of the other notable particulars that contributes to cost savings is customer satisfaction. With local, in-house teams, working odd hours can be a problem. The international nature of business these days demands that your business have a 24/7 presence. With call center outsourcing, you can offer longer service hours without paying exorbitant overtime and night shift pay differentials. Plus, when customers can contact you whenever they need you – which they expect these days! – they will be happier. Customers who can see that you value them are more likely to spend more money with you and recommend you. Again, as your needs change on different channels that require different hours for voice or live chat support, you can scale up or down easily.

Potential Hurdles of Call Center Outsourcing

Loss of Control

Most notably, you will lose a great degree of quality control when you go for inbound and outbound call center outsourcing. You can’t see everything that’s going on, and the call center may not report everything bad that happens. Of course, they will probably want to cover themselves. So, you will have to dig to find potential issues. This usually means taking the time or hiring someone to do random inspections. This way, you can still protect your brand reputation and maintain your ability to deliver your brand promise. You can also customize scripts for them to reduce errors.

Lack of Knowledge

You may find it difficult to confirm specific outsourced call center skills. Because BPO hiring is so flexible, agents move around different accounts. This means you run the risk of using customer service agents who do not know your company or the industry well. 

If you require the call center agents you hire to have special knowledge, you will pay more than the usual rates. In this case, you might be better off hiring and training your own team of freelancers. This way, they will know your business and products inside and out. That’s how you guarantee that your customers will get the support they expect. Outsourcing to freelancers is also highly flexible, although it requires a greater initial time investment on your part. 

Language Barriers

As mentioned above, language proficiency is a major concern with call center outsourcing. Most BPOs are overseas, which means that most agents will have questionable cultural knowledge and language fluency. That is, if you are hiring the cheapest available workers. If they are unable to communicate effectively, this will affect your bottom line in different ways. As a result, we recommend that you pay more for better suited representatives to save you potentially bigger losses in the long run. 

Contracts

If you are a smaller business, you may not be able to commit to the larger contracts that many BPOs require. Know that there are other options out there, albeit more costly. Shorter contracts will serve you well as you get used to the way call center outsourcing goes, and verify the value you are getting before you commit.

Services you can outsource

Of course, you can outsource any service that can be done over the internet. These are just the three most popular outsourced call center tasks.

Inbound and outbound voice support

Inbound and outbound call solutions are the most popular in the outsourcing world. You can also outsource all kinds of customer service for multi-channel communication under the umbrella of voice and non-voice services. You can outsource either inbound or outbound services, or both at different levels, depending on your needs.

Inbound voice support usually covers customer service and outbound voice support mostly deals with sales.

Marketing calls

Aside from your typical outbound cold calling, you can outsource specialized marketing communications. Most companies find telemarketing campaigns too expensive, but outsourcing can make one doable for your business. 

Lead generation is a more common marketing activity for even smaller companies. You can set up scripts for call patterns that agents can follow. Then they can safely reach out to potential customers within these parameters, gather relevant sales data, and create reports for you. When you are able to track specific data in this manner, you can do proper data analysis. Then you can make changes like creating more targeted campaigns because you have a record of common customer needs.

Frequently Asked Questions

What is the difference between a call center and a BPO company?

The terms “call center” and “BPO” are often used interchangeably. There is a difference, however. Call centers are actually part of the BPO industry. They focus on voice support services, like taking customer calls. BPO companies cover these services as well as other outsourced back-office tasks.  

If you require highly technical or professional skills, we recommend that you hire a BPO company. If you need a simple and affordable solution for customer service, you can go with a call center solution. 

Can small businesses benefit from call centers?

Small businesses can definitely benefit from maintaining an external base of operations in the form of a call center. This will help with handling current operations and provide an avenue for growth as well. With the right call center solution, you can give your business that professional touch that customers will recognize. This comes from guaranteed quality assurance that comes from experience and expertise. Services can be tailored to your small business needs, so you don’t need to worry about unnecessary outsourcing call center costs. 

What Is Outsource School?

Outsource School helps you to unlock the potential of virtual assistants and accelerate your business growth.

This is the exact system Outsource School’s founders, Nathan Hirsch and Connor Gillivan, used to go from zero to 8 figures and 40+ virtual assistants with an exit in 2019.

Since being founded in 2020, Outsource School has helped 1,000+ business owners hire 2,000+ virtual assistants for their companies.

Schedule a free sales call to learn more

Free resources you might like: 

• Outsource School Case Study: How We Scaled to 45+ VAs and 8 Figures in Revenue
• Free VA Calculator | See How Many VAs You Can Afford
• Free Training on 5 Keys to Working With VAs
• Learn Outsourcing 101 | Guides, Downloads, and Checklists

Conclusion

Call center outsourcing can be the perfect solution to your customer service needs. You may even have other needs like lead generation or various technical tasks that a BPO can help you with. Just make sure you know what you need and confirm that the company you work with can meet them.

 

Do you want to start offloading tasks but need some successful outsourcing examples to work off of? In this post, we’re outlining ten examples of outsourcing that can get you thinking about what you need help with.

What Is Outsourcing?

Outsourcing is the process of handing over a task or a business process to an outside entity. These third-parties act as an extension of your business for a limited time. 

The great thing about outsourcing is the fact that you can hand over almost any task. When it comes to overseas outsourcing examples, they always involve tasks that someone can do over the internet. Some examples of outsourcing include: 

• Admin or back-office tasks, 
• Customer-facing tasks like live chat services
• Core business functions like sales or production 

A business can outsource to anyone outside their company. You can outsource to an individual who lives in a building right next to you. If you want to leverage certain outsourcing benefits, you can try offshore or nearshore outsourcing. This is where you hire a company or individual in a different country to perform tasks for you.

Benefits of Outsourcing

Cost Efficient

Cost-effectiveness is the selling point of outsourcing. 

One main reason to turn to outsourcing is the costs of maintaining full-time, in-house workers. Benefits and salaries are just the tip of the iceberg. You also have to account for taxes and other overheads. With outsourcing, you don’t have to worry about those things. 

Some countries charge lower rates for the same quality of service. A lot of US companies outsource overseas to India, China, and the Philippines because of better rates. 

Though, don’t get us wrong. This is not to say that these countries are havens for cheap labor. Their lower cost of living simply means you are more likely to get better deals on rates. This is especially true if you live in places like California, New York, or other states where prices are inflated. 

Saves Time

Your time is even more valuable than your money. Chances are the tasks you want outsourced are those you don’t believe are worth your time to do. That’s an honest take and completely valid. Why would you spend time on outsourcing examples like data entry, logistics, or manufacturing? If it’s not something that you’re passionate about or is a good use of your skills, outsource it!

Say you do value and care about these tasks. Even if you want to do it yourself, you can’t do everything. You only have 24 hours in a day and not sleeping is a pretty bad idea. 

Outsourcing frees up both you and your staff to focus on your strengths. Lower priority tasks could be taking you away from core business areas. They could even be distracting you from investing yourself fully into making your business succeed.

Access to Expertise

We love a hands-on business owner who can handle multiple tasks and perform excellently. However, as much as we may want to, we can’t be good at everything. Enter the experts. Their value is that they have already invested a lot of energy and resources honing their craft. 

These companies have done trial and error for you. The result- optimized processes, fast-learning, and quick problem-solving capabilities. 

Experts save you both time and money. They’ve invested in becoming the best so you can be confident investing in them. 

Risks of Outsourcing

Lack of Control

When outsourcing anything, you are giving up control over that particular task or project. While it isn’t full control, it’s enough to make people hesitant to choose to outsource. If you are someone who values being involved in every step of the process, outsourcing makes it difficult to do that. This is especially true the farther away you decide to outsource. 

Quality Issues

It’s very possible that the service provider could be doing things that do not meet your standard of quality. Even the same products made in separate countries can taste very different. This can be due to the materials used, equipment used, or management styles. If you are a products-based business, you can outsource close by. This way you can inspect the progress and result yourself. 

Security Concerns

Data security is non-negotiable. Whether it’s customer information, financial data, or product details, you need proper protection. The risk for data breach or misuse is never zero. However, there are a lot of companies who make security guarantees. In fact, some have entire pages dedicated to it. But you must ensure these companies are legitimate and not scammy.

10 Common Outsourcing Examples in Business

1. Marketing and Advertising

A lot of companies know how to make a great product or service. Not a lot of companies know how to market those products well. This is where sales, marketing, and advertising outsourcing come in. These individuals or teams are well-versed in consumer gaze. They know what draws people in, what mediums to use, and what platforms your target audience uses. They can help you develop effective strategies to not only generate leads but also improve conversions. 

2. Customer Service

Apart from physical staff in stores, customer service can be a completely remote process. For instance, say you are running an ecommerce store. You can hire another person or team to take care of customer emails, FAQs, and even install live chat services. These entities will learn about your products and services and provide the best customer experience possible. 

3. Manufacturing

This is probably one of if not the most common business process outsourcing examples for product-based businesses. Few companies have the resources to produce their own products at scale. This is where white label manufacturers come in. They have the tools, equipment, and real estate to produce items for you. This comes out incredibly cheaper in the end. 

4. Business Development and Sales

Business development is one of the business process outsourcing examples that I like to lay out. Business development is a broad role with many components that you need specialized skills to fill. Sales actually falls within business development. Another major area is partnership development, which ties in with marketing. 

Examples of outsourcing here include tasks like market research and analysis, sales channel and strategy development, customer outreach, and company value growth.

5. Shipping and Logistics

We can talk about only a few areas that are more successful outsourcing examples than shipping and logistics. These two tasks are among the most tedious, repetitive tasks in any business. Yet, they are so vital to get right every single time. If you’re not using a done-for-you service like Amazon FBA, you will thank us for recommending that you outsource this as soon as possible.

6. Accounting and Bookkeeping

This area of business involves maintaining a general ledger, ensuring financial accuracy of documents, and prepping and filing taxes. It requires some specialized skills, so you’re better off not trying to learn it all yourself. Hand it over to more experienced persons, like the folks at EcomBalance.

7. Information Technology (IT)

It’s been a stereotype for a while that “IT guys” only help you when you don’t know how to work a computer. While they certainly can help you with that, their duties encompass far more than that. Take cybersecurity, for example. One way for a company to safeguard its sensitive data is through a strong IT department. They help build databases but also help put up safeguards and backups in case something goes wrong. IT is also in charge of networking and installing the proper software and tech hardware needed (like servers).

8. Human Resources

We at Outsource School can help you a ton with the hiring process. However, we highly recommend that you hand off even this process itself once you understand the basics. Some of the most successful outsourcing examples that we have from our clients are completely outsourced systems. This means outsourcing to an HR manager who takes care of everything from job posting for recruitment and interviewing candidates to onboarding hires and managing them within teams.

9. General Admin and Executive Assistance

This is another among the most popular outsourcing examples and for good reason. We mentioned how valuable time is for a business owner. The best way to protect your time is to pass off all the most time-consuming, repetitive tasks as soon as you can.

10. Software Development

This and similarly high-tech tasks are great examples of outsourcing for skillsets. You don’t need to hire in-house developers unless you are a software company or agency. You will also not do well learning all the high-tech knowledge that you would need to build your own software. The best solution, therefore, is to outsource the project.

Frequently Asked Questions

How do I minimize risks to my business when outsourcing?

The greatest risks to your business when outsourcing are due to misunderstandings. First, therefore, we urge you to set very clear expectations with any hires before you begin work. Come to an agreement on every aspect of every project or role. Then, get everything down on paper and make sure both parties have no questions before you sign it. This can help you to avoid so many possible issues down the road.

Another common risk you face is due to the anonymity of the internet and the difficulty of prosecuting outside your country. It’s relatively easy to cheat online and hard to run after people who do it. So, we highly recommend that you do your due diligence before putting money on the line. Only hire from reputable companies with a long track record of client satisfaction.

Can I outsource multiple tasks to one person?

Absolutely! A lot of freelancers are used to managing multiple tasks at once. The important part is to set realistic expectations and deadlines. Also, know that you will pay higher rates for people who are skilled in different areas.

What Is Outsource School?

Outsource School helps you to unlock the potential of virtual assistants and accelerate your business growth.

This is the exact system Outsource School’s founders, Nathan Hirsch and Connor Gillivan, used to go from zero to 8 figures and 40+ virtual assistants with an exit in 2019.

Since being founded in 2020, Outsource School has helped 1,000+ business owners hire 2,000+ virtual assistants for their companies.

Schedule a free sales call to learn more

Free resources you might like: 

• Outsource School Case Study: How We Scaled to 45+ VAs and 8 Figures in Revenue
• Free VA Calculator | See How Many VAs You Can Afford
• Free Training on 5 Keys to Working With VAs
• Learn Outsourcing 101 | Guides, Downloads, and Checklists

Conclusion

We hope that these successful outsourcing examples have piqued your interest in outsourcing. Despite the risks, you can benefit greatly from outsourcing, especially with a partner who knows all the tricks and can help you be more successful at hiring smart.

 

Outsourced accounting Philippines – what is it, what’s the process and how can it benefit me and my business? 

We’ll answer all that and more here in this article. 

How Does Outsourced Accounting Work?

Outsourcing is hiring an outside entity, often a third party company, to perform a task for you. These can be front office, back office, and core tasks. 

Fun fact: A business can technically be 100% remote via outsourcing!

There are three main types of outsourcing:

• Onshore Outsourcing – Also known as domestic outsourcing, this is when you hire within your country. 
• Nearshore Outsourcing  – With this method, you hire an entity from a nearby country. 
• Offshore Outsourcing – Similar to nearshore, a business hires a company from another farther country. For instance, instead of Brazil, a US company chooses the route of outsourcing accounting to the Philippines.

You can choose to hire through freelance marketplaces, freelance agencies, or accounting service providers.

Types of Outsourced Accounting Services

Bookkeeping Services

This service deals with the ins and outs of maintaining your books. These can be partial or full-service and can include catch-up or clean-up services. They can operate on a cash or accrual basis and can cover single or double entry bookkeeping systems. 

Financial Analysis and Reporting

Some services include reporting with their bookkeeping services. These are typically The Big 3 Statements (income statement, cash flow statement, and balance sheet). However, others charge a separate fee for additional in-depth reports and financial analysis services. They pair you up with an expert who can provide you with important business insights. This person helps you understand the short and long term impacts of certain business decisions. They may also help you strategize and plan your budgets.

Tax Preparation and Planning

Tax is one of the most popular reasons why people choose accounting outsourcing. From collecting all the necessary documents to ensuring you maximize tax deductions, it is a whole process. Their accountants can use their tax know-how and help you stay compliant. 

Auditing Services

Companies avail of this service if they want to conduct a financial investigation of their books. Here, someone will make sure that your business observes the proper practices and everything complies with current regulations. They also make sure everything is accurate and there is no shady activity like fraud happening.

Outsourcing vs In-House Accounting

Cost Comparison

We mentioned earlier that the cost of outsourcing accounting services is much less than in-house. 

According to Indeed.com, the average salary for a US accountant is around $60,000. In comparison, a freelance accountant costs $12-$52/hr depending on the level of skill you need. 

Time Savings

When you pair expert bookkeepers with years of experience, you get efficiency. You can free up yourself and other personnel to focus on other core business functions. Bookkeeping and tax prep is very time-consuming. Why not leave the busywork to someone else? They not only have the skills but even the passion to make sure your financial back-office is in order. 

Flexibility 

We normally perform accounting on a monthly or quarterly cycle. If you only need reports monthly, it wouldn’t make sense to hire an in-house team. Accounting outsourcing makes more sense, especially when you only need their services every so often.

Choosing an Outsourced Accounting Service

Experience and Expertise

Consider how long they’ve been in the business. What degrees and certifications do they possess? 

Another thing you need to consider is whether they have experience with businesses in your industry and are similar in size. Specialized expertise is always a plus and proffered. 

Reputation and Reviews

Even if an agency or freelancer has worked with many companies, that doesn’t necessarily mean they do a good job. It’s best to hire a company that has a social proof system. Some freelance marketplaces have rating and review systems. This is the reason a lot of accounting service providers display reviews and client testimonies on the front pages of their websites. 

Additionally, you can ask someone you know to recommend an accounting service they’ve tried. This way you have someone closer who can give you honest first-hand feedback.

Pricing and Payment Options

The best outsourced accounting options are those that are flexible. A multimillion-dollar company will have different needs than a local business. You want a partner that can cater to your bookkeeping needs. Why outsource accounting if you’re paying for services you’re not using? These plans should be flexible and able to scale together with your business. 

Advantages of Outsourced Accounting Services

Scalability

DIY bookkeeping and accounting is great in the beginning. However, this changes as your business begins to scale. You’ll start noticing that accounting and bookkeeping tasks will siphon a lot of your time. 

Expertise and Experience

Some people ask “Why outsource accounting when I can do it myself?” While you don’t need a degree to be an accountant, there’s a reason it’s a college course. You need the right amount of knowledge and skill to do proper accounting. There is a lot of information you need to learn from GAAP guidelines to local, federal, and tax laws. Even then, real world practice is another story. When you hire someone who already has both, you are setting yourself up for success. Not only can they do their work more accurately, but they can also catch errors quickly. They know exactly how to solve problems as they arise, whereas you may need to troubleshoot to find a solution. 

Cost Savings – An in-house team will cost significantly more than the cost of outsourcing accounting services. Aside from salary, you need to consider other costs such as worker benefits, cost of tools or software, and other overheads. 

Access to Advanced Technology

Accounting agencies typically already have the software, tools, and infrastructure in place to do their jobs with excellence. 

Disadvantages of Outsourced Accounting Services

Lack of Control

When you outsource anything, you are giving up some measure of control. While you can schedule check-ups and updates, it is much harder to manage quality. This is why it’s essential to choose a company with an exemplary track record that inspires trust. 

Security Concerns

Another concern people have is the security of their data. A lot of people worry about handing over sensitive financial data to another party. 

This is why a lot of these services include security guarantees on their websites. They go into details about their data privacy measures because they know this is a major consideration. 

The risk of data breach is significantly lower when choosing these companies. 

However, the risk is still there. Those who believe that can protect their data better than these entities may be a lot more hesitant.

Best Practices for Working with an Outsourced Accounting Service Provider

Set Expectations

Create an exhaustive list of tasks you need accomplished. It’s always better to over explain and leave no room for misunderstanding. Always set the expectations during the onboarding process so they are fully aware of the entire scope of the work. 

Be Upfront

Remember, your accounting team is a partner. You should be honest about your books, otherwise they can’t help you. If you’re behind on your books and need catch-up work, let them know. 

Schedule Check-ins

Make sure to have regular updates with your accounting and bookkeeping team. Establish a mode of communication early on and discuss specific times to meet. 

How to Get Started with Outsourcing Your Accounting Services

Based on Ecombalance’s “5 Steps to Outsource Your Bookkeeping and Accounting Without Headaches” we recommend these 5 steps:

1. Define Your Ideal Outcome
2. Research Bookkeepers and Accountants
3. Choose the Best One For Your Business
4. Stay Focused Through the Integration Process
5. Provide Feedback in the First 3 Months

Frequently Asked Questions about Outsourced Accounting Services

Is it safe to share financial data with an outsourced accounting service provider?

As long as you hire from reputable companies who have security certifications, you should be okay. Make sure they have

• Digital measures like encryption
• Physical security to protect their data servers
• Clear accountability to the authorities for potential mismanagement of data 

How do I select a reliable outsourced accounting service provider?

Research to find a consensus on which ones are the best and weigh the pros and cons of each. 

You can also check out our article on the top 11 bookkeeping and accounting services for growing businesses. 

Can outsourced accounting services help small businesses and startups?

Absolutely! The great thing about these services is their scalability. No matter the size, you can find a solution that works for you.  

What level of expertise and qualifications can be expected from an outsourced accounting team?

These individuals have likely undergone formal education, continued learning, training and certifications.

What Is Outsource School?

Outsource School helps you to unlock the potential of virtual assistants and accelerate your business growth.

This is the exact system Outsource School’s founders, Nathan Hirsch and Connor Gillivan, used to go from zero to 8 figures and 40+ virtual assistants with an exit in 2019.

Since being founded in 2020, Outsource School has helped 1,000+ business owners hire 2,000+ virtual assistants for their companies.

Schedule a free sales call to learn more

Free resources you might like: 

• Outsource School Case Study: How We Scaled to 45+ VAs and 8 Figures in Revenue
• Free VA Calculator | See How Many VAs You Can Afford
• Free Training on 5 Keys to Working With VAs
• Learn Outsourcing 101 | Guides, Downloads, and Checklists

Conclusion

If you’re looking for an affordable, efficient, and effective financial management solution, outsourced accounting might be the way to go.