Outsourcing Has Moved Beyond Cost Savings
Of the nearly 500 business leaders we surveyed for our recent State of Outsourcing report, 86% rated quality service as “critically important” when selecting an outsourcing service provider, compared to just 58% for cost savings (respondents could select more than one answer).
“Critically Important” Factors When Selecting an Outsourcing Provider
Cost Savings
Service Quality
In terms of measuring the value of their providers’ services, 59% said they measure value through cost savings, but service quality was a close second at 51% (again, respondents could select more than one answer).
How Business Leaders Measure the Value of Outsourcing
Costs Savings
Service Quality
These results indicate that while cost still matters, it’s not the only thing companies are taking into account.
How else has outsourcing changed?
The Quest for Quality in Outsourcing
Different stakeholders have different priorities, so there is no one-size-fits-all definition of “high quality.”
However, identifying what constitutes low-quality service is more straightforward — slow service, errors, communication gaps, and disorganization are common red flags.
From our experience, key features of high-quality outsourcing include:
Proactive Communication
Proactive communication fosters a transparent and responsive relationship between client and provider, where progress reporting and feedback drive continuous improvement.
Subject Matter Expertise
Providers should demonstrate specialized knowledge in the services they offer, whether it's customer success, technical customer support, data processing, or content moderation.
Alignment with Strategic Goals
High-quality outsourcing partners don’t just meet Service Level Agreements (SLAs) — they provide strategic input that contributes to your broader business objectives.
Flexibility
Rather than relying on rigid off-the-shelf offerings, providers should offer adaptable solutions that are specifically tailored to your unique needs and challenges.
Together, these features comprise what we call value-centric outsourcing — combining all these elements to create a virtuous circle of value not just for your customers, but also for your business as a whole.
Defining “Value-centric Outsourcing”
Value-centric outsourcing should not be confused with aligned missions or ethical values (although those are important, too).
At SupportNinja, when we talk about value-centricity, we’re referring to providers that offer value beyond the transactional level of meeting KPIs and SLAs. This means delivering benefits to your customers, your internal teams, and your company as a whole.
Benefits for Your Customers and Your Brand
A value-centric outsourcing partner will integrate themselves into your brand, understanding every aspect of your business from products to brand messaging. This deep understanding will enable them to embody the voice of your company, fiercely protect your corporate image and reputation, and provide exemplary CX that nurtures customer relationships and boosts brand loyalty.
Benefits for Your Internal Teams
A value-centric outsourcing partner will also serve as an extension of your in-house teams and bring a positive impact to your entire organization. They’ll take an interest in your broader business objectives, asking discerning questions and strategizing to align with your overall goals, and providing your teams with more bandwidth to focus on higher-priority projects and / or upskilling.
Benefits for Your Operations
Drawing from their experience with your organization — whether it’s frontline CX interactions with your customers, a content moderation workflow, or something else — a value-centric partner will provide insightful observations about your operations, identify emerging trends, and even flag potential bottlenecks where improvements can be made.
Based on their observations and your collaborative strategy, they’ll help you optimize workflow processes and provide access to technology that can help you boost efficiency — including technology that might otherwise be out of reach.
It’s important to note that achieving this level of value-centricity is far simpler when outsourcing is proactively incorporated into your business strategy (rather than added reactively). Through proactive outsourcing, your provider will have ample time to carefully strategize with you and seamlessly integrate into your organization.
Key Factors that Contribute to Quality and Value
Value is a multifaceted concept. While outsourcing metrics like cost savings and efficiency improvements are relatively straightforward, other outcomes are less tangible — and therefore more difficult to quantify.
Our State of Outsourcing survey found that most companies are open to switching vendors, especially if they feel they're not getting the value they need. Although most companies are at least somewhat satisfied with their outsourcing vendors, 59% would consider changing vendors, and an additional 14% are actively looking into doing so.
Interestingly, what these companies often look for in an outsourcing provider is “quality,” but not necessarily the individual aspects that we believe make up quality: low turnover, scalability, and proven ROI.
Let’s take a closer look at each of these elements and how they align with quality and value-centricity:
Low Turnover
Low turnover is one of the most critical indicators of a high-quality outsourcing partnership.
First, it can signal that the outsourced team enjoys their work environment, benefits from competitive wages, and experiences minimal burnout. These factors contribute to a more stable and effective partnership.
Additionally, when your outsourcing team stays with you over time, they develop a deep understanding of your business, culture, and customers, which results in better service quality and more effective collaboration.
High turnover, on the other hand, can lead to frequent disruptions. New team members require onboarding and a ramp-up period to get to know your business. Having a constant influx of new team members can result in inconsistent service quality and longer time frames to achieve your desired outcomes.
Scalability
Another hallmark of a value-centric outsourcing vendor is their ability to scale with your business. Whether you’re currently experiencing rapid growth or want to plan ahead for long-term profitability, a scalable vendor can meet your changing needs, allowing you to maintain profitability and operational efficiency over time.
The right vendor can also provide additional value by supporting your expansion into new service areas, identifying trends, and helping you design new, more efficient workflows as you scale.
Proven ROI
When evaluating potential outsourcing vendors, evaluating their track record by looking at case studies and reviews — particularly with companies in your industry that had similar challenges to yours — can provide valuable insights into their capabilities.
Proven ROI indicates that the vendor has successfully helped other companies overcome similar challenges. This success serves as proof that their solutions are relevant, scalable, and dependable. A vendor with proven ROI can help your internal teams focus on your core business activities and allocate resources more effectively, driving growth and innovation.
Prioritizing Quality and Value-centricity
Value will look different for every company, but the foundational aspects will remain the same. It’s about more than just cost savings — it’s about finding a partner who can deliver high-quality, flexible solutions that align with your strategic goals.
At SupportNinja, no matter which services we’re supporting, we’re proud to lead with quality and value-centricity, building long-lasting relationships with our clients (and ensuring our clients can do the same with their own customers).
If you’re ready to take your outsourcing to the next level, partner with experts who prioritize quality and value.
