Everything You Need to Know About Outsourcing: Definition and Outsourcing Meaning

Outsourcing Definition

Outsourcing is a popular business strategy that has been gaining traction in recent years. It’s a way for companies to save money, save time, and make more efficient use of resources. But what exactly is outsourcing?

In this blog post, we’ll explain the definition of business process outsourcing, discuss the benefits it can bring to businesses, and explore how it works in practice. Whether you’re considering outsourcing your own call center operations or simply want to learn more about what it involves, read on for everything you need to know about outsourcing!

What is Outsourcing?

Outsourcing is the process of contracting out certain business processes, services, or tasks to a third-party provider. Companies outsource business functions and business operations to reduce labor costs associated with staffing, human resources, and training, access specialized skills or knowledge not available in-house, or focus on core competencies. It can be used for a variety of business practices – from marketing to supply chain to information technology services and customer support – but one of the most popular forms of outsourcing is call center operations.

Benefits of Outsourcing Call Center Operations

There are many pros and cons to outsourcing call center operations, including:

Cost Savings

One major benefit of outsourcing call centers is that it can save money compared to hiring and training in-house staff. Outsourced call centers often have highly trained professionals who are more experienced than an internal team would be, which reduces the need for training and onboarding new personnel. Additionally, since the vendor has multiple clients, they can spread out their overhead costs across their roster which leads to lower prices for each client.

Other cost cutting measures are achieved when using outsource services through process automation, AI, advanced technologies, and precision staffing. Omni Interactions also saves clients money by using remote and gig workers, eliminating costs associated with a physical location.

Improved Efficiency

An outsourced call center will likely have established processes and procedures that increase efficiency when compared to handling calls internally. By utilizing the latest technology and tools combined with well-trained personnel, an outsourced call center can ensure customers are handled quickly and effectively while helping boost customer satisfaction levels.


Outsourced call centers offer companies the flexibility they need when it comes to managing fluctuating demand for their services. Instead of having to hire additional staff on an as-needed basis or overextending existing staff during peaks in demand, companies can rely on an outsourced partner to handle increased volumes without compromising quality.

Increased Focus

By taking away the burden of managing a call center from your internal resources you allow your team to focus on company growth strategies rather than being tied up in mundane day-to-day tasks. This allows leaders to drive innovation while still delivering excellent customer service at all times.

How Does Call Center Outsourcing Work?

The first step in setting up an outsourced call center solution is finding a reliable partner with experience in your industry that meets your requirements for quality control and cost-effectiveness. Once you’ve identified an external service provider, the next step is signing a service agreement outlining what services will be provided along with pricing details so there’s clarity between both sides before work begins.

After this has been finalized you’ll want to provide clear instructions about how you want certain tasks handled as well as assign roles so that everyone understands their responsibilities throughout the process. Finally, you should create tracking mechanisms such as scorecards so that performance can be monitored against agreed-upon KPIs (key performance indicators). Doing this will help ensure that both parties understand expectations regarding quality control measures which helps prevent any misunderstandings down the line.

Where Should You Outsource?

But before you sign a contract with an outsourcing company, it is important to understand the different types of outsourcing solutions and what to look for when selecting an outsourcing provider.

Types of Outsourcing Solutions

  • Onshore Outsourcing: Onshore outsourcing is when a business chooses to hire someone from inside their own country for services such as customer support or IT helpdesk operations.
  • Nearshore Outsourcing: Nearshore outsourcing is when a business chooses to hire someone from a nearby country. This type of outsourcing often provides advantages over onshore outsourcing due to cost savings and time zone proximity.
  • Offshore Outsourcing: Offshore outsourcing is the practice of hiring people in different countries to handle specific functions or activities that are usually handled internally by a business. By doing this, businesses can save time and money while still getting access to specialized services that they may not have been able to obtain within their organization.

How to Select an Outsourcing Company

If you are choosing to outsource, it is important to know what your needs are and what kind of services you need the company to provide. Here are some tips for choosing the perfect partner:

  • Look for experience in the industry: Make sure that the outsourcing company has experience in the specific type of product or service you are looking for. Investigate their past clients and check out what their experiences have been like.
  • Check their references: Ask for references from past clients and contact them to get first-hand information about the company. This will give you a clear understanding of their capabilities and level of expertise.
  • Understand the scope of work: To ensure that you are getting what you expect out of the outsourcing process.
  • Ensure compliance: Make sure that the provider is compliant with all the relevant laws and regulations. The last thing you want is for your project to be halted due to legal issues.
  • Look at their tech: The technology partners a BPO uses and the level of automation creates efficiencies for you, the contact center agents, and your clients. It can also drastically reduce your costs.


Outsourcing has become one of the most popular strategies for businesses looking for ways to save time and money while still providing excellent customer service solutions. While there are many different types of outsourcing solutions available today – from marketing and PR services to IT support – one of the most popular uses is outsourcing call center operations for customer support needs such as answering phone calls or responding to emails/chats from customers quickly and effectively. With its cost savings benefits combined with improved efficiency along with increased flexibility and focus on core competencies, there’s no question why this strategy continues to grow in popularity among businesses worldwide!

If you’re ready to reduce your costs, build capacity, and delight your customers, get in touch today.