danger sign on a wall fence representing the list of outsourcing risks

Top 4 Outsourcing Risks and Ways to Overcome Them

Category: Outsourcing BlogPublished: Last Updated:

Amid your gigantic pile of work, have you ever thought of hiring remote workers for your non-core tasks? Although you’ll find lots of blogs about the perks of hiring remote services, these pros surely come with cons. All companies have their fair share of problems, anyway. Hence, we’ve listed here a few common outsourcing risks and ways to manage them.

Outsourcing Risks to Watch  

binoculars to represent the outsourcing risks to watch out for

Over the years, the outsourcing sector continues to be one of the key contributors to the economic growth of our country. Despite this progress, the trade has been facing downsides. Before you invest in a BPO industry in the Philippines, prepare yourself first for common outsourcing risks you may face.

1. Slow Internet Speed

In an article released by CNN Philippines, the speed and ease of use of long-term evolution or LTE connection in our country is below par. Likewise, OpenSignal, a mobile network research firm, issued their “State of the LTE Report” in November 2017. The data showed that our country is in the 74th spot out of 77 nations listed for 4G speed.

Among the outsourcing risks, this can affect firms and clients, such as BPO firms, in a poor way because they use the internet. Thus, we can say it’s one of the potential risks in outsourcing business tasks. This issue can also be a factor for the country to lose its edge in the outsourcing market.

2. Rising Health Risks

Since most clients who farm out their services are from the other side of the globe, most BPO workers have to work in the graveyard shift. This working schedule results to upset in bio-rhythm and changes in the workers’ body clock. Besides, because of long hours of sitting at work, they also feel eye, lower back, neck, head, and hand pains. Thus, stress from a fast-paced workplace and irate clients must be thought off as part of the outsourcing risks to consider before choosing an outsourcing firm.

3. Global Domination of Artificial Intelligence or AI

As the use of AI in creating systems for repetitive tasks continues, know first if the task you’re about to outsource has an existing system or not. This domination may leave millions working in the outsourcing market jobless making it the top among the outsourcing risks to evaluate. Further, relying on AI has a downside. Note that systems and machines can’t do tasks that ask for critical thinking skills and complex decision making. These jobs include research, giving advice, data analysis, and mobile and cloud services. This can only mean that an in-depth analysis of your firm is vital to coming up with the best choice.

4. Increased Tax Rate

Due to the new Tax Reform Acceleration and Inclusion or TRAIN law affecting a few foreign firms in the country, the BPO sector may resort to added fees and charges. This serves to make up for the extra costs the new law will create. For most owners, increased cost is one risk of outsourcing their tasks to the Philippines.

Overcoming Outsourcing Risks

As what most successful people say, success comes to those who take risks. If the odds are better than you think, opting to hire remote services for your non-core tasks is a good idea. The outsourcing risks listed above may seem huge, but they all come with solutions.

To beat these risks, look for a reliable outsourcing company, such as FilWeb Asia Inc., that has a prepared backup plan for such risks. FilWeb Asia Inc. has efficient internet service providers and hires only skilled IT staff who can help improve internet speed issues. Also, our firm promotes healthy eating and working habits plus schedules that offer work and life balance. To prepare for the rise of AI, nonstop training on the use of high-tech systems for our staff. We also offer KPO services. Above all, our management is skilled at allocating funds and in handling human resources; thus, helping address the outsourcing risks in taxes.

Along with Outsource-Philippines, FilWeb Asia Inc. leads in giving BPO and KPO solutions and services to firms in the Philippines and abroad. If this interests you, call our customer service for a more detailed explanation about our offers.

Sources: cnnphilippines.com | pinkwhalehealthcare.com | newsbytes.ph | outsource-philippines.com
Photo by Joey Banks on Unsplash