For most businesses, deciding on an outsourcing partner is one of the most crucial business decisions. Once the decision on outsourcing is done, then the business is confronted with the issue of selecting single or multiple partners.
Nowadays, single sourcing is widely adopted as it has its own advantages. Single sourcing offers various benefits such as minimal variation in the quality of the product or service, better optimization of the supply chain, lower production costs, and creating better value for customers and stakeholders. In addition, single sourcing can streamline training and enables better utilization of resources. It also cuts down the interoperability issues significantly.
These benefits are explained in detail below.
Benefits of Having a Single-Source Business Process Outsourcing (BPO) Partner:
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Businesses gain in efficiency as well as in delivering an improved customer service experience when they choose a single-source Business Process Outsourcing (BPO) outsourcing partner. The following are the benefits of having a single-source outsourcing partner.
The biggest factor that goes in the favor of single sourcing is better accountability. A single-source Business Process Outsourcing (BPO) partner is solely responsible for the entire process. They cannot blame others for non-performance or delay in delivery. This sense of responsibility results in the effective and efficient delivery of a product or service.
As the outsourcing partner is responsible for the completion of an order from start to finish, it lends more visibility to all the operation processes and procedures such as tracking orders, detecting potential bugs in the process, etc. Such visibility can provide a business with valuable inputs and feedback about the functioning of various departments, thereby resulting in smoother operations.
No business in the world will say no to cost savings. A single-source model saves costs as everything is executed by the vendor, thus cutting down additional handling charges and delivery costs. A business is also relieved from the pressure of paying each partner individually as pricing may differ with each service provider in the case of multi-sourcing. This allows the business to leverage better economies of scale and offer a competitive price for the end consumer, which in turn, may boost sales.
Most businesses are adopting the single-source outsourcing model due to better utilization of human resources. In the case of single sourcing, a business needs to train only one service provider as compared to the multi-source model. This saves a considerable amount of time and energy for the business, and they can allocate their resources to more critical areas.
A single point of contact for the entire operation leads to better efficiency. In the case of the multi-sourcing model, a business needs to call different service providers over the process lifecycle. Having a sole contact ensures that all parties involved in the process understand each other’s roles and responsibilities better, and will be better equipped to deal with unforeseen problems.
A single-source model works best when there is a need to deliver the goods or provide the service fast without compromising on quality. This can happen only when there is a strong rapport between the business and the outsourcing partner. Single-sourcing offers a platform where it is easier to create and maintain a strong bonding between both parties. In the case of the multi-source model, it is difficult to maintain the same kind of healthy and close relationship with all the parties.
Boosts Brand Image:
The single-sourcing model enhances the brand and reputation of a business. When all operations are done under the same roof, it boosts the quality of work and ensures that the highest quality of service is provided to the customers. For example, if all the customer service operations are assigned to one call center outsourcing provider, it ensures consistency of the brand message in all interactions. Therefore, it helps in augmenting customer experience, which is critical for the success of any business.
Before adopting a single-source outsourcing model, a business needs to weigh all options and conduct a thorough cost-benefit analysis over the solution it needs and the terms it can support. It should also do a detailed background check, credentials, and clientele of the potential single-source partner. With the right Business outsourcing partner, the business will be greatly benefited and will be able to focus on its growth objectives.
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