3 Contradictions About Ecommerce Outsourcing You Should Understand

In case you have not realized, eCommerce Outsourcing has many contradictions. But should you avoid it?

The answer is a big NO. Instead, you should understand and follow it.

What is a contradiction, anyway? Contradiction is a combination of statements, ideas, or features of a situation that oppose one another.

The business world contains contradicting ideas, terms, processes, goals, and laws. For example, “Business Ethics” is a straightforward and on-point idea. But on closer inspection, it is a contradiction. Business is about making a profit. Ethics, however, is played by a set of widely accepted rules. It means doing things as they ought to be and, by nature, not necessarily cost-beneficial. 

ECommerce Outsourcing comes from the idea that SMEs should be able to level the playing field with big companies. But, for some reason, small and medium businesses fear enlisting an outsourcing partner because of its confusing and contradictory concept.

So in this article, we will discuss three popular contradicting concepts about eCommerce outsourcing. And we will deconstruct them for you.

Three Contradictions in eCommerce Outsourcing

1. You gain more by giving away non-core processes to eCommerce Outsourcing.

In a sense, outsourcing does entail losing certain aspects of your operations. But the word giving away is a little misleading. You are not giving away processes to eCommerce outsourcing. Instead, you share a part with a BPO company to yield positive results.

What is truly happening in eCommerce Outsourcing is you are sharing the duties that you cannot handle in the hands of someone more fit to accomplish those tasks. Again, enlisting an outsourcing partner does not mean you will no longer have all of the rights to your process. The truth is, you still own 100% of your procedure.

Outsourcing allows you to have trained employees to work for you without breaking a sweat. They might not work directly for you, but they must follow your goals and help your business in certain areas to grow. It is still your voice that dictates the direction of the operation.

Furthermore, eCommerce Outsourcing lets you earn more by sharing non-core tasks in your company. Here are eCommerce tasks you can let your BPO partner take in:

Imagine having people that can handle these tasks for you. By allowing BPO companies to share the responsibilities of taking non-core processes, you are gaining access to various perks. These include:

• Technological advantage
• Cost-effective solution
• Increased efficiency
• Save on infrastructure
• Timezone advantage
• Faster and better service

In hindsight, you are just losing the non-core tasks in your company with eCommerce Outsourcing. But you are earning more than expected. 

It is a contradicting concept, and it is a daunting tradeoff to make. Letting other companies inside your system poses a threat to your business structure. But most of the time, it creates new opportunities and possibilities.

2. By embracing a new business strategy, you reduce the chances of risk

Regarding opportunities and possibilities, eCommerce outsourcing can help your company mitigate risks by letting it be part of your business.

Usually, in a business setting: new partners, investors, and strategies pose a risk or a threat to the business. Especially for SMEs since they have a lot to lose. A small company that cannot reduce the impact of risks can face bankruptcy and closure.

But in contradiction, BPO takes risks for your business more than it can provide it. How?

For example, if a company by any chance faces problems due to natural calamities, technical crises, or market fluctuations. Then the offshore outsourcing partners can still keep working on their assignments. Hence, the business flow was never interrupted, and customers can still expect high-quality service to continue. Additionally, it brings the company back on track.

Losing a potential customer is also a risk for SMEs. But eCommerce Outsourcing companies can immediately offer products and assistance that can help you retain and convert customers.

Furthermore, outsourcing has become a cost-cutting tool for small businesses. In 2019, cost reduction was only a priority for 12% of small businesses. However, in a study by Deloitte in 2020, 70% of 40 executives across their clients, service providers, and lawyers globally say that they use outsourcing as a cost-cutting tool. Outsourcing plays a vital role in companies as a risk-mitigating business strategy.

Outsourcing your eCommerce needs can reward your company with better business processing support that will allow you to scale and remain competitive.

3. By sharing customer data with an outsourcing company, protecting more of it.

The 2018 Cost of a Data Breach Study by Ponemon reports that the global average data breach cost has risen by 6.4%. And the average outlay of it is nearly USD 8 million.

In the age of technology and data, security has become the number one standard in choosing a business partner. And with the growth of the number of data breaches around the globe, one might think it is more secure to keep data for yourself.

That is why businesses are afraid to be partners with BPO companies. Especially e-shops that are handling boatloads of customer data. Although the fear is understandable, thinking BPOs are not secure is wrong.

BPOs made a lot of ways to help e-shops handle data efficiently. These are some of the best practices BPOs apply:

1. They are not allowed the use a personal computer or laptop for work-related tasks. BPO companies usually provide their employees with equipment. Data is stored in the desktop’s hard drive or cloud drive with encrypted security in a work-from-home setup. Storages must be password-protected at all times.
2. Passwords are everywhere. No one can access another agent’s computer account without passwords. Documents such as Word attachments and PDFs are also password protected.
3. BPO companies always maintain a Quality Assurance and Data Protection Officer on the production floor. Besides ensuring the quality never dips, they are also responsible for enforcing proper data security. Their job is to ensure that every employee complies with strict data protection standards.
4. Desktops provided by companies have built-in secured VPNs and firewalls that protect data 24/7. Employers provide employees with a portable broadband connection in a work-from-home setting for a smoother workflow.
5. Call centers have a single CRM system to record customer issues, capture information, and track topics via tickets. So any unauthorized access to a customer account can be recorded.
6. BPOs maintain an internal security policy. Authorities and managers of the organization should have a clear set of procedures to establish guidelines and standards for the work process and data security.
7. More importantly, BPO companies equipped themselves to handle data securely with the best systems, software, and programs, verified for safety, security, and privacy.

One good trust indicator for eCommerce outsourcing companies is credentials and compliance with well-known organizations like ISO, PCI DSS, and GDPR.

Thinking that webshop outsourcing companies are not secure is a myth. BPOs follow stricter rules than usual since they must also comply with guidelines presented by their clients. Even more so, some take the initiative to have other organizations audit their processes.

It may sound contradictory, but by allowing BPOs to manage your customer data, you are taking steps to protect it even better than before.

Conclusion

Preconceived ideas can polarize you into thinking that hiring a BPO is scary since you must give up crucial parts of your company’s operation. But there is always a tradeoff on every risk presented to you.

Following the contradictions is a concrete action that will restore some of your problems and eventually enable you to move beyond your dilemma of shrinking capacity and increased demands.

In essence, you can make better decisions by looking closely at the tradeoff between risk and opportunity (the definition of contradiction).

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