Outsourcing for Smaller Companies: Updating Common Misconceptions

May 14, 2020

WRT-Misconceptions Blog PostOrganizations turn to outsourcing for a huge variety of tasks—the global market for outsourced services is approximately $85.6 billion across all industries. But some companies, primarily smaller ones, are reluctant to embrace the advantages of contracting with outside professionals, especially for the crucial role of servicing customers. Unfortunately, these companies haven’t kept up with current thinking. Below are common misconceptions many managers still believe that simply don’t hold water.


settingsMisconception #1: “If I Outsource, I’ll Lose Control Over My Infrastructure”

A lot of people assume that an outsourced provider forces you to leverage their data tools and CRM solutions. Or, that by handing infrastructure access over to a third party, they’ll be “out of the loop” about what’s happening and why.

The best outsourcing companies fully embrace a client’s technology and its existing business processes. With these companies, you still own every kilobyte of data on your servers and all the processes used to deliver support.

Although you won’t be controlling the outsourced agents yourself, you should always be able to communicate with them and check progress. Your people aren’t being replaced by an outsourcing team; they’re being supported by them.


reviewMisconception #2: “The Quality of Support Will Never Be as High as What I Can Provide Myself”

Think about some of the other tasks you already outsource, like accounting and legal services. You go outside your firm to receive a level of expertise that your company doesn’t possess.

WRT-Misconceptions BlogTo achieve higher customer satisfaction and loyalty, choose a provider best matched to your markets and culture. You’d never choose a legal firm that specializes in maritime law to handle a tax issue, and this holds true for customer care.

In the end, many companies achieve higher CSAT scores and loyalty when they work with an external provider. Your outsourcing partner should meet a single goal: to deliver the best results possible, with no exceptions.


budgetMisconception#3: “Outsourcing Costs More, and Takes More Time to Achieve the Same Results”

Outsourcing can eliminate a lot of overhead and operating costs and drive significant reductions to your bottom line.

Outsourcing eliminates administrative and HR expenses. It frees companies from gathering resources, creating infrastructure, and hiring a workforce. It also eliminates overtime, holiday, and weekend support costs. Forecasting is simpler because you have a fixed, monthly fee, based on your needs and budget. Everything is taken care of.

When you outsource, you’re enlisting the help of a specialized team to increase your company’s productivity. This allows you to focus on other areas critical to your business—where you are an expert—and to achieve better results all around.


keyholeMisconception #4: “If I Outsource, My Clients’ Security and Privacy Will Be Lost”

Do you have mobile phones in your office? If so, you’re already not as secure as a reputable PCI compliant outsourcing company.

Outsourcing firms likely operate with a higher level of security and compliance than you’re running internally. Many have incredibly strict guidelines and operating procedures to guarantee data privacy, and any reputable outsourcing partner will follow both GDPR and PCI compliance policies.

Client security should be a top priority for any trusted outsourcing company. Their entire business model depends on the trust they develop between themselves and their clients.


structureMisconception #5: “Outsourcing is Only Good for Big Businesses. I’m Just Too Small”

Misconceptions Blog 2Outsourcing can make smaller companies seem more well-established – especially if it allows them to feature advanced support to their customers and retailers. A viable outsourcing partner will tailor their approach and solutions to your business and its objectives.

When used strategically, it’s perfectly suited to vibrant, growing or disruptive firms because it allows them to retain ultimate flexibility while still meeting all the market needs of the bigger companies. In today’s economy, outsourcing has become viable for companies of all shapes and sizes.


The truth is, it’s a whole new outlook

You no longer have to be among the Fortune 500 to enjoy a successful partnership with an outsourcing agency. Like all businesses, outsourced customer care has become as nimble and tenacious as its smartest customers. The right partner can help you offset costs with gains in productivity, agility, security, and customer retention while keeping full control of your representatives, your customers, and your data. Outsourcing is no longer what you may have come to believe, it’s become what you need.

Sapan Shahani 400Sapan Shahani is the CEO of Goodbay Technologies and is based in Chicago, IL. For close to two decades, he has helped digitally disruptive businesses deliver superior customer care. His passion is turning small businesses into international phenomenon – one happy customer at a time! Sapan was born in Bombay, raised in Hong Kong, and educated in the USA (Wharton School, UPenn). After a successful career in strategy consulting, he launched Goodbay with a mission of delivering an intelligent approach to customer support.



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