Business Process Outsourcing (BPO)
For many organizations today, outsourcing non-core business processes has become not only the norm, but a key strategy for organizations that want to realign their focus on core areas and remain competitive in their industry. However, before jumping into the world of outsourcing, you need to determine if your culture is open to the idea.
What would your employees’ initial reactions be if you told them the following?
“We know there are specific tasks that may be a burden or you are unhappy with, and we are thinking of outsourcing those.”
When deciding to outsource a specific task or process, the first step is having an open dialog with your employees, as their initial reactions will determine the likelihood for success, should you proceed with outsourcing. While you may think outsourcing undesirable tasks and processes would be helpful to your employees, they might not see it that way. When most people hear the word “outsourcing,” a common perception is that their jobs may be eliminated. As senior management, you should present thoughtful reasoning behind outsourcing tasks and be prepared to answer questions. But the question remains: Is your company culture open to outsourcing?
Take a look at our checklist below. The more times you answer “yes,” the more open your company culture is to outsourcing.
- Does your company culture embrace organizational change (i.e. working collaboratively with consultants)?
- Do you have an internal champion to serve as a liaison between the organization and consultants?
- Does your company culture support organizational growth?
- Do you have a thoughtful plan for communicating the outsourcing initiative?
- Does your company’s current budget allow for this expense?
- Does your company’s current processes and people struggle to keep up with your increased growth?
- Does your company have a prepared list of which tasks, activities or functions can be outsourced?
Regardless of where your company culture stands, outsourcing can be beneficial—and your employees need to know this. Start by explaining the reasoning and educating them on the tangible benefits. Take away their fears of unemployment by reassuring them it’s not about reducing headcount but retaining good employees and avoiding burnout. By removing the burden of specific tasks, it will allow your employees to focus on building your brand and focusing on core missions and strategies to give you a competitive edge.
Discussing the idea outsourcing with your employees is a delicate process, and how you handle the initial dialog will determine your success in contracting an outside party.
Stay tuned to learn what steps you need to take to being the outsourcing journey.
Read More: Human resources departments have a lot of responsibilities that leave them with about less time to focus on strategic HR initiatives. Learn how outsourcing specific responsibilities could benefit your HR staff by reading our blog post, 5 Benefits of Outsourcing Your HR Activities.
This publication contains general information only and Sikich is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or any other professional advice or services. This publication is not a substitute for such professional advice or services, nor should you use it as a basis for any decision, action or omission that may affect you or your business. Before making any decision, taking any action or omitting an action that may affect you or your business, you should consult a qualified professional advisor. In addition, this publication may contain certain content generated by an artificial intelligence (AI) language model. You acknowledge that Sikich shall not be responsible for any loss sustained by you or any person who relies on this publication.