EDITOR ’ S QUESTION
The question of ‘ to outsource or not to outsource ?’ can be a complex one for businesses , says Dave Reynolds , CEO , Business Process Outsourcing at Paragon . He added : “ There are a host of factors to consider , from the practicalities of how the deal will work , the services in scope and the risk culture of your business , to how to manage internal stakeholders through this transition .
“ The decision often isn ’ t black and white , so businesses will need to weigh up both sides of the equation . The risks to Business Continuity seen throughout the pandemic were more pronounced in internal operations .
" Those that were already outsourced with Disaster Recovery embedded into the solution were the least disrupted . With this risk now in focus , concerns about handling such a significant change are often outweighed by the risk-benefit of outsourcing . Even so , a move to outsourcing can initially feel like a loss of control and stability , as keeping processes internal provides a level of overview and visibility that may seem to be lost by outsourcing .”
Reynolds said that it ’ s common for businesses to worry about data security , particularly for highly regulated sectors such as financial services or healthcare , which might deal with the production or handling of documents like bank statements or medical documents .
“ Though handing over access to this information might seem like a significant challenge , it doesn ’ t have to be . Picking a provider with the right credentials and experience in data and risk management is vital . They can enhance your control over data and bring best practice to the relationship ,” he said .
If you ’ re a large organisation that processes thousands of communications every day , it ’ s simply more efficient and cost-effective for them to all to be sent to an expert provider at secure locations , Reynolds said , where they can be digitised , processed and fed back into your system more quickly and securely than an onsite operation . You can also cope with peaks and troughs , if your business has any seasonality , without any loss of service .
Reynolds added : “ As long as a business investigates their chosen partner ’ s track record for managing sensitive data and look for the right certifications and security culture , they create partnerships that effectively extend their own team , meeting and exceeding the compliance standard they demand .
“ Despite the potential risks , outsourcing provides scope for a wealth of benefits , including the reduction of costs .
" By outsourcing , most businesses can expect to save about 25 – 30 % of their operating costs as they will no longer be responsible for purchasing business-critical equipment and its upkeep , or for the training and development associated with handling certain processes in house .
" On top of this , many companies don ’ t realise that outsourcing business processes can elevate their service offering . Rather than making a likefor-like switch , outsourcing is an opportunity to reassess their offering and improve it with the help of an expert partner .
“ There ’ s no one-size-fits-all approach when it comes to outsourcing , or what the challenges and benefits will be for each business .
" Yet , by researching and analysing their unique needs , businesses can work outsourcing into their strategies in a way that not only makes them more efficient , but more dynamic too .”
WHAT ARE THE BENEFITS / DISADVANTAGES OF OUTSOURCING FOR BUSINESSES ?
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