White Paper How Outsourcing Can Help Optimize and Grow your Business


Allied Global BPO, February 2017

Each year, on average, 75% of new ventures stop operations before reaching the two-year milestone. The closure is often related to roadblocks such as:

  • Insufficient funding
  • Lack of team member expertise
  • Unclear Short-and Long-term strategy definition and optimization
  • Discounting the importance of a robust back-office operation
  • Lack of Customer Service
  • Lack of Tech Support

Today’s marketplace demands entrepreneurs to be smart and innovative. However, even the most experienced entrepreneurs can lack full knowledge and expertise of the venture as well as time to adequately address unexpected issues.

Toutsourcing non-core business activities to the right partner can help you overcome natural growing pains. Outsourcing enables entrepreneurs to focus on designing strategies to fulfill their mission, allowing them to work with an external and unbiased partner obtaining new perspectives. Outsourcing has become an innovative part of any business model; so much in fact, that there is a good number of professionals, at every level and within every industry, who leave permanent jobs to pursue outsourcing-related jobs.


In fact, 37% of companies use outsourcing to grow their business in the today’s economy; and 78% of entrepreneurs believe that outsourcing gives them a competitive edge and consider it as a growth hacking strategy.


Over the past 15 years, the global economic landscape has been shaped in a very particular way due to outsourcing. Today, companies regardless of their business vertical and size choose to delegate their non-core operations to experts, allowing them to focus on core functions that drive profit and growth.


OUTSOURCING MISCONCEPTIONS

Outsourcing is often misconceived as being exclusive to larger business. However, small ventures experience the same benefits of outsourcing such as increasing business process efficiency and overall cost reduction. Furthermore, Outsourcing has also been an essential “cornerstone” for major Fortune 500 companies that began as a startup.

Let's review some misconceptions companies have about outsourcing:


#1: I am too small to outsource.

False! As a matter of fact, Global Business like Staff.com used outsourcing by freelancing staff as a startup, while Skype outsourced a team of developers in Estonia to build their business.

Another great example of a startup that outsourced its operations is Slack, the messaging app for the workplace which, in its early days, completely outsourced the design of their app, logo, and website. Today, Slack has a few million users and valued at $3 billion dollars.


#2: Employee’s jobs are on the line when outsourcing comes in the door.

False! In fact, Outsourcing is commonly used to support in-house employees and free up time to carry out core duties and revenue-generating functions.

Let’s use the example of Slack again to state that their outsourcing strategy not only did not affect current jobs but made the company grow from 80 employees to 385 in only four months. Although outsourcing may have a “downsizing” stigma, today, entrepreneurs turn to it for growth and scalability purposes.


#3: An outsourcing company represents a bigger risk for business operations.

False! As part of corporate strategy, more and more companies, not only address non-core operations through outsourcing but rather find a long-term partner for growth and profitability.

Regarding capability enhancements, outsourcing is a way to bring major change to an organization when other avenues of change have been exhausted says Peter Allen, Managing Director of TPI in Houston.


#4: Outsourcing is expensive!

False! Relocating specific business functions yields financial savings from two primary drivers: 1) International diversification can potentially decrease costs 2) Outsourcing costs tend to be considerably lower than the cost of adding and managing full-time employees.


#5: My outsourcing provider cannot learn with me about new ventures and strategies.

False! When choosing the right partner, the outsource service provider can become a seamless extension of your business.


#6: I need supervised experts to handle my non-core business operations, and I will not find that in outsourcing.

False! Outsourcing providers are industry experts frequently focused on activities you wish to outsource. They will not only give expert advice but eventually could direct your business to better horizons you would have never foreseen.



WHEN IS THE RIGHT TIME TO OUTSOURCE?

Every company is different. However, the right time to outsource comes when either you or your employees, are unable to fulfill core responsibilities of the business. For example, if key personnel are using a significant amount of time on back-office and other administrative operations that deliver no growth value, it is time to consider outsourcing.

Non-Revenue Generating functions such as customer service, tech support and IT, are an option for outsourcing to maintain and increase your customer base. Here are a few questions you have to ask yourself to know when is the right time to outsource.

1. How long does it take to execute back-office activities/prospect/customer acquisition? Could that time be spent on revenue-generating activities? If the answer to the question is yes, then you might have found a priority area to outsource.

2. At this point of my business, could Outsourcing Foster Growth? Both Domestically and Internationally, Outsourcing gives you access to expert supplier services and therefore fosters the economic growth of the region while boosting your business operations.

3. Cost of a full-time team vs. Outsourcing team.

Specialists state that an entrepreneur could save anywhere from 40-50% by outsourcing depending on the positions and functions at hand while delivering considerable productivity sin savings, quality and time to their operations.

Most Startups that have taken the plunge with outsourcing have consistently shown growth in various areas of their business. Below a few examples of Startups that have outsourced their services and grown their business as a result:

a. Slack: Now valued at nearly $3 billion, used outsourcing to develop its solution in its earliest days.

b. Skype: Used a team of developers in Eastern Europe to help build out their business.

c. JPay.com: External developers helped strengthen their technology and infrastructure, outsourcing teams for quality assurance, engineering, and hardware.

d. Staff.com: Hired outsourced talent and freelancers for other organizations to grow from a startup into a globally business.

According to most recent data, over 14 million workers of US companies account for outsourced jobs, that is about 8% of the entire US workforce. The four industries that outsource the most are technology, call centers, human resources, and manufacturing.

While domestic work and in-house teams represent Traceability, Trust, Same Language and Time zones, regions like Latin America make a great alternative to outsourcing because of the same elements with additional savings in labor costs.

Furthermore, more and more start-ups, as well as large corporations in the United States or trying to enter the American market, are increasingly looking at Latin America for outsourcing, offering a small difference in time zone and less drastic cultural differences.

Now that we have covered the facts behind outsourcing’s potential, we would like to explain further Outsourcing services related to Contact Centers and BPOs and how they can support Back-Office, Administrative, Sales and IT strategy in startups.


WHAT IS A CONTACT CENTER AND BPO?

Let’s start with the basics. What is a BPO and Contact Center?

BPO – Normally implemented as a cost-saving measure, Business Process Outsourcing (BPO) is delegating specific business operations such as inbound/outbound sales, data entry, payroll or accounting, to a third-party who provides expertise in these services.

Contact Center - Handles integrated and usually automated communications systems that coordinate all telephone and electronic contacts between an organization and the public. A contact center manages customers with both voice calls and data applications (chat, email, instant messaging, etc.). Typically, a contact center can offer “blended agents” who can manage multiple forms of voice and data-customer communications.

When finding the right partner, not only can BPO and Contact Center Outsourcing represent value for new ventures, but also create a fundamental operational arm for the company.


WHY OUTSOURCING WITH ALLIED GLOBAL
ENHANCES YOUR STARTUP’S GROWTH?

Allied Global has become a strategic partner for Startups and Fortune 500 companies by understanding the clients' needs and providing customized solutions.

Allied Global has proven time and time again we are the Outsourcing provider you can count on. We take the time to learn about our clients, their products and services along with their unique sales and marketing situation to provide solutions that produce meaningful and actionable results.

Areas such as Sales (both Inbound and Outbound), Customer Care, Technical Support and Back Office are ideal outsourcing areas for most new ventures. We have become a seamless extension of our Client's businesses. Here are some examples:

Sales: An inbound sale team (outsourced) was put together for a startup travel and hospitality client in 2012. In 4 years, Allied Global grew with the client by 300% in agent head count and expanded into 3 countries.

Read the complete case study here

Back-Office: Our client, a 3D startup modeling company, developed considerable process improvement through KPI set up by decreasing the average handle time by 60%, resulting in more projects delivered by the hour.

Read the complete case study at here

Customer Care: One of the Top Pre-Paid phone providers in the U.S. outsourced Allied Global services to handle QA for 2 of their brands. Today, Allied Global supports QA of 6 of the Company's brands and has grown the team of agents in more than 950% since the launch of the project. Recently, Allied Global was awarded the prestigious "QA Cup" for outstanding QA operations.

Read the complete case study here



ALLIED GLOBAL BPO AND CONTACT CENTER:
YOUR LONG-TERM OUTSOURCING PARTNER

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