What is Outsourcing? A Closer Look at Outsourcing in Call Center Services
There are many aspects to Outsourcing and in fact, the way it’s commonly used may refer to BPO or Business Process Outsourcing where American businesses farm out certain tasks to offshore offices such as those in India, China or – the best location, the Philippines.
In fact, US and global companies acknowledge the benefits of outsourcing and how US markets want to expand especially after the pandemic so that outsourcing can allow businesses to reach more clients and become a more prolific provider.
Outsourcing is something which comprises many formats and approaches.
Outsourcing is basically farming out tasks you don’t want to do to another company, organization or outsourcing partner.
Let’s start with the basics.
If you want new clothes, you are likely not one to sew them yourself using a seamstress’ machines and assemble the parts together. That is something you delegate to clothing stores, fashion companies or something you purchase through eCommerce.
You outsource the manufacturing of your food because that is something you don’t have time for. Unless of course you work or supervise in the food service industry and assembly lines.
Outsourcing is defined as something you don’t do yourself because you let other parties – such as manufacturers, drop shipping companies, clothing manufacturers or seamstresses do them for you. We outsource every day!
Outsourcing can get confused with many semantics though. For instance there is the question of Outsourcing vs. Offshoring vs. Offshore Outsourcing
What is best?
Outsourcing is typically what is now recognized as Business Process Outsourcing (BPO) and is usually thought of as Western companies farming out their routines to outsource offices such as those in the Philippines for the completion of their quotas or KPI’s.
In a sense, companies which serve Western clients and typically perform backend tasks while Western companies retain more front end tasks such as R and D, the front end of Sales and meeting of new stakeholders is considered the modern notion of business process outsourcing. (BPO)
Outsourcing vs Offshoring vs. Offshore Outsourcing vs. BPO Outsourcing
Sometimes the question of outsourcing vs offshoring is a question of semantics, outsourcing refers to offloading tasks to any provider in general. While offshore outsourcing can mean delegating your tasks to a foreign office such as one in India or the Philippines or China. Offshore offices are branches of large businesses which operate abroad.
Offshore outsourcing then is finding a BPO in a foreign location to help you find staff who can then perform your routines.
Offshore outsourcing can include production, manufacturing, or assembly of parts. PEZA includes many of these industries in the Philippines.
Call center outsourcing is another category altogether. There are certain services which fall under the bracket of Offshore Outsourcing in a BPO Call Center: