In this white paper, Mark Kausel, Director of Client Services, explains why insourcing can be challenging, and how outsourcing can be a viable alternative that delivers successful results.
Please click on the video to the right to learn more about the author, hear his insights on this white paper, and learn what motivated him to write about this topic.
To discuss this white paper in detail, please contact Mark using the information provided at the bottom of the page.
Organizations throughout the world are redefining their delivery models to be more agile in responding to geopolitical conditions (i.e., COVID-19, Brexit, etc.). Global business service (GBS) models under consideration include insourcing and outsourcing. The pandemic demonstrated that work can be effectively performed remotely, and people enjoy flexibility contributing to a new work/life balance. Many organizations are now considering reducing office space and allowing work from home (remote). It raises the question: if they allow working remotely, why limit the acquisition of talent to local communities? Why not expand the search globally to find the best talent?
In the 2021 Global Shared Services and Outsourcing Survey Report (Delloite, 2021) conducted by Deloitte, those respondents who invested in global business outsourcing and shared service center capabilities were able to achieve:
With the right outsourcing partner, organizations achieve:
There is an advantage to leverage global, multifunctional, and virtual or remote models to deliver services considered non-core to your business offering. But to be successful, an organization must find a BPO partner that demonstrates the ability to mitigate the risks involved with outsourcing.
As organizations evaluate the best way to deliver their product or service, their focus is aimed at increasing revenue, reducing costs, and boosting efficiencies within the organization to drive greater business value. Successful businesses identify key performance indicators (KPIs) and measure and compare them regularly. How can outsourcing assist an organization with optimizing their KPIs? One way is to outsource non-core functions, especially today. Examples include payroll, IT services, human resources and other support services.
Business goals remain the same, but how to achieve them has changed since the pandemic began. The U.S. Business Process Outsourcing Services industry is expected to be $US 56.0 billion in 2022 (IBISWorld, 2021). Globally, the business process outsourcing market was $US 245.9 billion in 2021 (Grand View Research, n.d.) and growing. Is it better to insource or outsource non-core functions?
Insourcing is the practice of assigning work (task, projects, or responsibilities) to your internal workforce. These resources are employed by your company. Outsourcing establishes a business arrangement with an external organization that performs the work on behalf of your company. There are many variations, but in general outsourcing organizations are considered:
As one evaluates insourcing versus outsourcing, there are many considerations, and each organization must determine what is most important to them and which will provide the greatest chance to achieve your KPIs. The table below summarizes the pros and cons of insourcing and outsourcing.
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There are ways for organizations to mitigate the cons and further accentuate the pros of outsourcing. At Vee Healthtek, we have developed outsourcing solutions to accomplish this.
Over the many years of successfully delivering outsourcing solutions to our clients, Vee Healthtek has identified some best practices that have proven to be effective in reducing the uncertainty described by the “cons” in the previous table and enhancing the “pros”. Our clients experience the following:
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Vee Healthtek is a well-established company that has the experience of being on the forefront of many initiatives. The culture supports ongoing education, investing in our people, resulting in long-term, loyal employees. Our clients benefit from this and can use our expertise to mitigate the risks of outsourcing. A partnership with Vee Healthtek means achieving Extraordinary Outcomes.
Our onshore and offshore teams work in unison to deliver the very best client experience. A Vee Healthtek client can have the confidence to focus on their core business, while Vee Healthtek handles the non-core functions. Our clients gain peace of mind because of our commitment to excellence and our drive to deliver the very best.
