Outsourcing VS In-House? Here are 7 Things To Consider

One of the most common dilemmas business leaders face is determining whether to keep operations in-house or outsource them. There are pros and cons to each approach, so how do you decide what’s right for your company? Here are some key factors to consider when evaluating outsourcing vs. in-house staffing:

Cost Savings

Outsourcing can provide significant cost reduction since you avoid expenses like employee salaries, benefits, training, and infrastructure. But weigh short-term savings against long-term costs and investments in intangibles like institutional knowledge.

Quality Control

With outsourcing, there is a tendency to struggle with lower-quality output. However, more reputable outsourcing partners put systems in place to uphold the quality of each agent’s output. While in-house engines give you maximum oversight, the overall team success depends on your staff’s skills which are often lower compared to an experienced BPO.

Scalability

Outsourcing companies can expand or contract teams quickly to meet the changing needs of your business, but in-house teams usually scale through hiring and firing. This makes outsourcing ideal for new companies with volumes that fluctuate depending on seasonal surges.

Focus

Partnering with a BPO affords you the time and resources to optimize your company’s core activities. As such, your in-house teams can focus on coaching and supervising outsourced teams, providing them with all the tools they need to deliver effective service to you and your customers.

Access to Expertise

Where service providers boast specialized expertise, they often lack intimate knowledge of your unique systems and processes. However, a good provider will invest the time upfront to fully understand your business operations. They work closely with you to map current workflows and identify optimization opportunities. With an outsourcing partner that prioritizes learning your systems and processes, you can gain their expertise while also improving upon existing methodologies. The key is finding a provider that balances bringing new capabilities with customizing their delivery for your exact needs.

Data Security

Outsourcing can increase data security exposures if proper precautions are not taken. However, reputable providers invest heavily in robust cybersecurity expertise that often exceeds most in-house capabilities. They utilize encryption, access controls, data loss prevention, network segmentation, intrusion detection, and other advanced security measures.

Providers facilitate third-party security audits and certifications including proper security policies, employee training, and background checks. With the right partner taking the proper security measures, outsourcing can enhance your data protection posture.

Cultural Integration

In-house teams often align better culturally because they were hired specifically with your company’s values and norms in mind. While outsourced staff may never assimilate fully into your culture, many providers make concerted efforts to integrate their staff into client cultures as much as possible through training, immersion programs, and management oversight—impacting your core values, style, and processes into your outsourced team. With the right provider, you can develop a “one team” culture unified by shared mission and purposes regardless of physical location.

The decision ultimately requires weighing all factors in the context of your specific business. Remember that you need not take an all-or-nothing view–blending outsourcing with in-house staffing provides your business with the benefits of both models. With mindful evaluation and planning, you can leverage outsourcing to its maximum strategic advantage for your organization.