How Does Outsourcing Save Money?
Even with the ongoing global pandemic and economic crisis, outsourcing remains an indispensable business tool. In fact, around 54 percent of companies outsource their customer support operations to teams like ROI Solutions. It helps them cut costs, which can be crucial in today’s financially turbulent times.
But exactly how does outsourcing save money? Let’s take a look at the different ways our team can help reduce your company’s expenses.
How Does Outsourcing Reduce Costs?
1. Fewer Employees to Pay
Companies are required to pay their employees even if they don’t have much work to do at the moment. You also have to spend money on payroll taxes and employment benefits such as medical insurance, travel allowance, and pension plans.
However, hiring employees for inbound and outbound teams can be a risky investment. They could leave the company at any time, even after you’ve invested in their acquisition and training. And once you lose an employee, you would have to spend even more to replace them.
But with outsourcing, you’ll only have to pay for the price of the service package you chose, which already includes the agents’ payments and training. You don’t need to worry about taxes or employee benefits.
2. Less Working Space Needed
Hiring more employees often means you need a bigger workspace to fit everyone. This may involve renting another office space, expanding your current one, or building a commercial space from scratch, all of which take time and money.
You can avoid this problem by outsourcing to a third-party support team like ROI Solutions who already have their own workspace.
3. Less Equipment & Utility Expenses
A customer support or outbound marketing team needs several tools to do their job, including:
- Desktops or laptops
- Headsets and microphones
- Voice Over Internet Protocol (VOIP)
- Automated dialing software
- Call recording software
- Automatic call distribution software
If you plan to have an in-house team, you’ll need to provide them with this equipment. You may also have to upgrade your company’s IT infrastructure to accommodate them, such as buying more servers and building a bigger room to store them.
More equipment also means your business will consume more energy, adding more to your expenditures.
Fortunately, you can save yourself from making such a costly investment and have it outsourced instead. The outsourcing company will provide the equipment for their support teams.
How Much Do Companies Save By Outsourcing?
There’s no fixed amount on how much you can save. According to the International Organization for Standardization (ISO), outsourcing can help companies reduce an average of 15 percent of their costs.
But the actual savings depend on how many business operations you plan to outsource and other changes you want to implement in-house. The Harvard Business Review states that you could achieve cost reductions of around 20% to 30% by outsourcing non-core business processes, such as:
- Billing and payments
- Lead generation
What Are 3 Advantages of Outsourcing Call Center Services Besides Cost-Cutting?
1. 24/7 Services
Call centers like ROI Solutions can assemble service teams to answer calls 24 hours a day. They typically have servers in several locations to ensure operations run smoothly. This gives your business the chance to offer 24/7 customer support without putting much pressure on your in-house employees.
Having 24/7 customer support also ensures that your customer’s needs are met at any time of the day, which is always good for your company’s reputation.
2. Focus on Core Business Activities
Outsourcing saves you and your staff from getting bogged down with non-core activities, which could include telemarketing and technical support. The third-party team already specializes in these operations, so they’ll be able to provide high service standards to your customers in these aspects of the business.
It gives the in-house team more time and energy to work on their actual job. It also frees up your schedule—now, you can devote more energy to brainstorming about new products and services that help your company grow.
3. Outsourcers Can Be More Flexible
Marketing campaigns, seasonal sales, and other promotional activities can temporarily increase your call volumes. Likewise, there’ll be dry seasons, too. This means you’re not always getting your money’s worth with an in-house call center team.
Since third-party call centers usually have other clients, they can quickly adjust their team assignments so that their agents aren’t idling. If call volume rises quickly, the outsourcer can also call in more agents to handle the influx more efficiently.
If you want more details on how outsourcing saves you money, it’s time to contact ROI Solutions. We’ll assess your needs and help you set up an outsourcing team that makes your business more agile and efficient.