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Business process outsourcing (BPO) presents a dual advantage: cost reduction and business advancement. However, there are inherent risks to its allure. Successfully managing a third-party team is akin to building an in-house department, necessitating dedicated time and effort.
This article presents the benefits of onshore outsourcing and the challenges that come with it. It helps ensure a triumphant journey in the realm of BPO by sharing best practices to mitigate associated challenges.
Benefits of Onshore BPO
So, what is BPO? This strategy involves contracting out an area or an entire business process to an external provider. Onshore, or domestic, outsourcing is a form of BPO where services are sourced within the same country. Businesses can delegate nonessential but valuable activities, such as human resource (HR) functions, to third-party providers on their home turf.
Unlike offshore and nearshore outsourcing, onshore BPO offers a higher level of control and facilitates closer collaboration between parties. Its proximity fosters better communication and alignment. However, onshore outsourcing may entail slightly less cost reduction than the almost 70% savings offshore outsourcing can provide.
Fret not! Onshore BPO offers a range of advantages that warrant consideration. These benefits encompass the following:
Seamless Communication
Onshore outsourcing offers many advantages, with streamlined communication a paramount benefit. By engaging providers whose workers are fluent in your native language, businesses can ensure seamless interactions and enhanced customer experiences. This is especially true when outsourcing sales, marketing, customer service, and support roles.
Additionally, service providers’ geographic proximity and similar time zone(s) foster efficient collaborations and prompt response times. In contrast, offshore outsourcing introduces complexities when managing communication across different time zones, potentially hindering real-time cooperation and responsiveness.
Cultural Compatibility
Onshore outsourcing offers the advantage of bridging cultural gaps. By choosing onshore BPO, companies can avoid dealing with different cultural norms and work practices. Sharing a cultural context with your third-party team fosters a stronger sense of understanding and collaboration, leading to smoother business operations and enhanced customer satisfaction.
In addition to eliminating cultural barriers, onshore outsourcing promotes a higher level of cultural sensitivity and adaptability. Onshore providers are more likely to share values and business practices, enabling seamless communication and fostering a more harmonious working relationship.
More Convenient Outsourcing
Saving money is often cited as a primary motive for offshore outsourcing; however, the practicality of these savings may not always materialize. Onshore outsourcing proves more convenient and cost-effective when requiring in-person problem resolution.
Onshore projects benefit from a higher level of alignment and familiarity with the client company’s procedures, eliminating the need for extensive training and ensuring smoother project execution.
Enhanced Quality Control
Improving quality control is a notable benefit of onshore outsourcing. Direct, in-person interaction facilitates thorough training and ensures a clear understanding of the requirements between the company and its service provider.
Additionally, onshore BPO relieves in-house managers and senior staff members from the burden of managing overseas teams during non-standard working hours. This streamlines operations and allows for higher-quality output.
Safeguarded Intellectual Property (IP)
Different countries have many copyright and IP law variations, and enforcement may not be as robust outside the United States. Poor IP policies expose organizations to risks when offshore suppliers have access to valuable assets, such as source codes and sensitive data.
With stronger IP protection legislation, BPO providers in the United States offer a more secure environment for preserving IP rights.
Challenges of Onshore Outsourcing
Onshore outsourcing offers the advantage of similarities between an organization’s internal staff and the third-party staff team. That said, direct in-person oversight may not be possible with remote workers, even within the same country.
It can take time and may be difficult due to distance and other factors when integrating employees with the onshore service provider’s staff. Additionally, delays may still occur due to differences in time zones, potentially impacting the development schedule.
The talent shortage in the country may also affect the availability of workers. For example, accounting in the U.S. has recently shown a 17% employment decline, making it harder for local BPO firms to find accountants and auditors.
Here are the common challenges of onshore outsourcing:
- More expensive due to higher production and labor costs
- Limited talent pool and specialized expertise
- Less flexible and scalable
- Difficult time finding specific expertise
Best Practices for Successful Onshore Outsourcing
Onshore teams consist of workers who operate within the same country as the client company’s headquarters. Proper coordination between onshore and offshore teams ensures smooth task execution.
Effective coordination avoids miscommunication, enhances result delivery, and maintains work quality. Implementing best practices for managing hybrid teams can help facilitate seamless coordination between your onshore and offshore teams.
Here are the best practices for successful onshore BPO:
- Establish clear engagement rules.
- Check if team members have the right tools.
- Leverage the latest technologies, such as artificial intelligence (AI) and robotic process automation (RPA).
- Communicate accountability and work schedules.
- Foster trust and inclusion.
- Encourage openness and build connections.
Example of Successful Onshore BPO Implementation
One company that found success with onshore BPO is Jones Lang LaSalle Incorporated (JLL), the second-largest public brokerage firm in the world headquartered in Chicago, Illinois. They wanted to deliver high-touch support to customers and revenue producers. They needed a support function to deliver superior service and a single point of contact to their global clients.
JLL partnered with an onshore BPO vendor to establish a service to provide the required service levels. Onshore agents delivered the following key services:
- One point of contact with end-to-end support
- Level 1 and 2 support for applications, with subject matter experts (SME) available
- Multi-language support
- Continuous process improvement, training, and knowledge management
- Responsive and adaptive customer satisfaction (CSAT) program
The Bottom Line
In summary, navigating an onshore third-party team can pose challenges, but building a cohesive and inclusive team culture is achievable. You can foster employee engagement and enhance organizational productivity by implementing the above-mentioned best practices. With this valuable insight, you can effectively manage your external team.
Partner with Unity Communications to explore opportunities for business growth. Our expertise lies in helping you strategize, establish, and effectively manage a dedicated offshore team that seamlessly integrates with your organization.
Let’s connect to discover how our comprehensive services can support your business goals and drive success.
