It’s April Fools’ Day. But instead of pranking you, we’re going to let you in on the explosive facts that blow up three major myths plaguing the Business Process Outsourcing (BPO) industry. Because as much as we hate to admit it, in a world where work is no longer bounded by proximity or time zone, those who continue to buy into these myths are inhibiting their own innovation and putting their competitive advantage on the line.
Myth #1: BPO takes local jobs away
Fact: Jobs lost mean jobs gained
This has to be the most widely accepted myth, hands down. But fact is, BPO as a key strategy allows more final output with lower cost inputs, and consequently, lower costs for local business and consumers. In other words, lower prices lead to higher standards of living, which then means the creation of more jobs in a growing economy. And because day-to-day tasks in an offshore model are taken care of by the overseas facility, a ‘promote from within’ approach is reinforced, giving in-house talent more opportunities to move up the ranks and take on managerial roles.
Myth #2: BPO is just about cost savings and staff augmentation
Fact: The primary drivers of outsourcing are global expansion and access to skills
‘Fixing one’s mess for less’ has often been an incorrect way of looking at BPO. While offshore outsourcing initially focused mainly on cost saving through labour arbitrage, it has been noted that most outsourcing relationships that are simply based on cost have a tendency to fail. Outsourcing isn’t just about ‘warm bodies’ either. It’s true that business optimisation is a core benefit, but what really matters at the end of the day is the quality of people, and more importantly, the quality of output.
Myth #3: BPO is unsafe where data security is concerned
Fact: BPOs employ data security programs and adhere to compliance requirements that are more stringent than those exercised in-house
There is indeed an increased risk to data when it comes to outsourcing. After all, companies are providing outsourcers with access to some of their most sensitive corporate data assets. That’s why, successful outsourcing requires successful risk management. Thanks to new intelligent technologies, policies for compliance, data protection/data breach detection and corporate data governance, BPOs are able to monitor, alert, report and mitigate security breaches effectively.
Here at Acquire BPO, we observe strict compliance standards and best practices. We have domestic legal counsels who ensure accurate domestic advice that adheres to relevant legislations, such as DNC and privacy laws, is implemented at every level of the organisation. Moreover, the members of our team are trained and certified according to the global standards and frameworks set by internationally-recognised bodies, such as COPC and ISO/ISMS.
To prosper in a very tight market, businesses need to realise that BPO, when done right, is more of a strategic advantage than a threat. Because apart from delivering significant cost savings, BPO has also become a lever for business growth and innovation. Those who accept myths as fact are sure to have difficulty transforming their business. Talk to us about our outsourcing strategies that address your needs.