In today’s fast-paced business world, there is more pressure than ever for companies to provide superior quality and customer support. In order to do this while keeping costs down, businesses of all types are choosing to outsource their non-core processes.
Geoffrey Moore, author and management expert, introduced us to the concept of core versus context. In a speech given at Stanford University, Moore explains, “Whatever is the new thing that creates differentiation, that’s core.” Meanwhile, context is any activity that doesn’t differentiate the company in the eyes of the customer. “If we do [context] brilliantly, we don’t succeed. If we do it badly, we get in trouble.”
Separating core from context is essential to the success and growth of any great company. Extract resources from context to invest in the core.
Outsourcing is a smart way to help your company grow while saving money. However, the advantages of outsourcing go beyond simply cutting costs. If you are considering outsourcing technical and customer support, it is important to understand the various benefits— for both you and your customers.
- Cost advantages: The most obvious advantage of outsourcing is the cost savings that it enables. Because your business is no longer responsible for back-end processes such as technical support and customer service, you can perform your core business functions at a lower cost while having more time and resources to do it well. The same level of support and service can be performed at a fraction of the cost. In fact, one recent article reports that businesses stand to save an average of 60 percent by outsourcing work to India.
- Core area focus: Another benefit of outsourcing is that it allows you to focus on the most important functions of your business. In periods of rapid growth, the back-end operations of a business expand and require a high expenditure of resources. When you allocate more resources to performing secondary activities, you have less money to provide quality front-end services. Outsourcing frees up more of your resources so that you can use them where it counts.
- Increased efficiency: When you outsource your business needs to a dedicated partner, you benefit from their industry expertise. The process of outsourcing can be complex and potentially involve multiple projects, so it is more efficient to hire a company that specializes in the practice. This leads to an increase in efficiency and productivity, which contributes to your bottom line.
- Staffing flexibility: Outsourcing also allows you to make use of additional staffing resources when you need them, with no commitment to keep them on when you don’t. Outsourcing customer service during busy times of the year, for example, can allow you to provide superior support to your customers without a long-term cost or staff commitment. By keeping a scalable team of resources available, you can meet your customer’s needs with increased flexibility.
- Reduced overhead: In some cases, the cost of back-office functions are too high to be sustainable. Outsourcing easily transferable functions, like customer support, enables your business to lower its overhead while continuing to provide your customer with high-levels of service.
- Improved services: When you outsource, you are also improving your service offerings. Because you are continuing to provide high-quality deliverables while decreasing lead time, your products or services reach the marketplace sooner. This is great news for your customers because it means that you are providing faster and higher-quality service. And it’s great news for you because you are saving money while allocating resources in a more efficient way.
The GlowTouch team is committed to providing businesses like yours with remote infrastructure management services, server and data migrations, and operations support. We can provide you with full-time teams to operate and monitor your services from around the globe. From daily IT operations to customer support, GlowTouch has the experience and expertise you need to make the successful transition to outsourcing.
Let GlowTouch help you reduce business costs, eliminate inefficiencies, and impact your business in a positive way. Make us your trusted partner and we will help you find the strategic approach that works for you and your business. Our support specialists have high standards of both quality and productivity so that you will see a reduction in error rates and discover new solutions to your business challenges.