Pros and Cons of Business Process Outsourcing

In simplest terms, business process outsourcing (BPO) is the delegation of specific business operations to a third-party service provider. It is a common practice among large-scale businesses and multi-level corporations. Call centers are shining testaments of the BPO business model.

For most small-to-medium enterprises, outsourcing is more or less a stroke of genius; it helps you seek ways to adapt and stay competitive. If you’re selling products online, you’re already outsourcing your operations to a third-party service provider (platforms or e-commerce solutions) that has better expertise—which in time will save you a lot of time, money and resources.

Yet, deciding to outsource your operations should not be an easy decision—at some cases, it might be met with some resistance within the business. That’s why we’ve collected the pros and cons of BPO, weighing the good and the bad, so you can make an informed decision on what is best for your business.

THE PROS

Business process outsourcing will provide your enterprise with many benefits, some of which are discussed below.

  • Frees up your operations so you can focus more on running the business. When a third-party handles time-consuming business processes (such as customer service), it frees up more of your time. With more time available, you can put your attention towards the business’ core competencies.
  • Minimizes overhead costs. With BPO, your business can lower overhead costs and become more efficient, being able to do more for less.
  • Grants you access to a competitive industry. Working with third-party solutions provider like Always Open Commerce gives you direct access to people with superior knowledge and experience in the industry.

THE CONS

As with any other major business decision, it’s a must to consider the disadvantages—or nitpick, if you will—of moving ahead with a third-party service.

  • Requires careful planning. Getting your business into BPO is not a matter of making the decision over a cup of coffee and then handing things over to the third-party at dinner. For instance, meetings with key contact persons are almost necessary to set things up. It takes a lot of planning and consideration.
  • Occasional hidden costs. Watch out for hidden costs, such as legal expenses, when dealing with BPO companies. Make sure everything is written on paper, so there are no financial surprises.

Should you worry about these cons when you consider working with Always Open Commerce? Not at all! And we have five compelling reasons why our clients trust us as their third-party solutions provider. Click here to learn more!

         
Always Open Commerce is a third-party e-commerce solutions provider with expertise in the development, design, and maintenance of online stores.