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Outsourcing Advisory

How to choose the right outsourcing location for your business

Dedicated business leaders are always striving for the best: the best team, the best reputation, and the best solutions to their challenges. The idea of "best" speaks to our desire for security, quality, and achievement.

But what does “best” really mean in outsourcing? The answer is different for every business. The right outsourcing location varies based on your company's specific needs, goals, and priorities.

For example, while India may be the best choice for one company, Argentina could be a better fit for another. Here are a few key considerations to help you decide on the right BPO partner for your business.

Here are a few key considerations when choosing a BPO partner:

  1. Cost: Outsourcing is often chosen for its cost-saving potential. Offshore outsourcing can be particularly cost-effective, thanks to lower labor rates in certain regions. But it’s important to consider the full picture. How much will travel costs to the location be? How often will your team need to visit in person?
  1. Communication: Clear communication is key to building a successful partnership. Consider language proficiency—does the local workforce speak the language of your target customers? Also, time zone differences can impact collaboration. How much overlap between time zones will be necessary to ensure effective communication?
  1. Skillset: The skillset required for your business will influence the location you choose. Some regions specialize in certain industries or skill sets due to their educational systems or access to technology. What expertise does your BPO need to meet your business requirements?
  1. Infrastructure: Reliable infrastructure is a must. While many regions offer the basic essentials, it’s important to assess the specifics of your potential provider’s location. Does the region have a track record of strong power grids, high-speed internet, and modern data centers?
  1. Security: Cybersecurity and data protection are top concerns. Some offshore locations may have less stringent security measures. It’s crucial to mitigate these risks with thorough research, strong contracts, and protective measures like data encryption and independent audits.
How to weigh your options

Choosing the right outsourcing solution doesn’t have to be overwhelming. Here’s a three-step process to help guide your decision:

  1. Assign weights to each factor
  • Identify the key factors that matter most to your business.
  • Rate each factor on a scale (e.g., 1-10) based on its importance.
  • Assign a weight to each factor (making sure the total equals 100%).
  • Multiply each factor’s score by its weight and add them up to get your final score.
  1. Shortlist potential locations
  • Define your criteria for a BPO provider.
  • Perform an initial screening based on those criteria.
  • Compare the top options against your essential and desirable criteria.
  • Choose a handful of locations for further evaluation.
  1. Evaluate each location
  • After narrowing down your options, evaluate them based on your weighted criteria to find the location that best fits your needs.
Need help?

If this process feels a bit overwhelming, you’re not alone. At AdviseCX, we’ve helped countless business leaders choose the right BPO provider and location to meet their needs. Our team of experts is here to guide you through every step of the process, ensuring you make the best decision for your business.

Ready to find the right outsourcing solution? Contact us today.

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