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Factors Affecting the Outsourcing Industry in the U.S and How to Tackle Them.

By February 2, 2023March 26th, 2024No Comments
Outosurcing BPO USA blog

Outsourcing has recently evolved into one of the most common trends in companies opting for business continuity and cost efficiency. While many companies have started working remotely, post the Covid-19 pandemic, many others have resorted to a hybrid work structure.

This article focuses on the factors affecting the outsourcing industry and presents the ways to tackle them. 

Factors Affecting Outsourcing and Their Solutions

There might be numerous risks associated with outsourcing a particular task or operation. The benefits of outsourcing, however, outweigh such risks. ARDEM is a Business Process Outsourcing company that ensures operational efficiency for its clients to reduce costs. Here is a deep dive into the factors affecting outsourcing.

1. Loss of Control

As companies outsource some of their business processes previously managed by their in-house team, they may find a sudden loss of control over those operations. Miscommunication can lead to inefficiencies and may impact the project’s quality or delivery time.  

Solution – Before hiring an outsourcing partner, firms must check their experience handling clients. Companies must also set up a point of contact to manage the outsourced processes, establish certain KPIs, set timelines for meetings and updates etc. ARDEM uses a well-organized framework for businesses to control their tasks.  

2. Communication Barriers

Companies new to outsourcing may find it challenging to maintain proper communication with the outsourcing partner. Barriers to effective communication may deteriorate project quality. 

Solution – Companies must establish dedicated business hours to communicate with the outsourcing company. A standardized communication mechanism and proper escalation protocols help companies manage such hurdles. ARDEM follows an efficient communication framework with the latest technological platforms to provide real-time updates on the status/progress of the given tasks.

3. Hidden and Unforeseen Costs

The main objective of outsourcing is to gain a competitive advantage without managing an in-house team. Companies must assess the costs associated with outsourcing and compare them with managing an in-house team. Additional expenses such as redeployment, troubleshooting, and software upgrades may add up to the original cost but may be unnecessary for the firm. 

Solution – Companies must interact with the outsourcing company and ask for transparency in the cost estimate while entering into an agreement. Firms must define the exact project requirements to the vendor in the initial phase to get an accurate cost estimate. ARDEM provides cost-efficient solutions for its clients and follows a transparent costing approach. 

4. Trustworthy Vendor


Finding a reliable and trusted outsourcing partner is crucial. It is one of the most common problems companies face as they do not look into the outsourcers’ backgrounds.  

Solution – A few checkpoints to finding a trustworthy vendor are – the number of projects and clients handled by the firm, experience of the outsourcing company, reviews of the firm, access to the latest technology and so on. ARDEM is known for its reliability, quality of service and on-time delivery performance.

5. Security and Privacy Concerns

We implement a slew of security measures to protect your data.

While outsourcing a part of their operations, companies expose a fraction of their business assets to the outsourcing firm. Data leakage from the outsourcing firm may land companies in serious trouble. 

Solution – Companies must check the following before selecting an outsourcing company – security protocols, privacy, data protection measures and intellectual property that involves trade secrets, copyrights and patents. Additionally, non-disclosure and service-level agreements help companies protect data from leakage. ARDEM addresses data security at multiple levels using VPNs, SSLs and PGP encryptions as a standard practice for securing client data.


A reliable outsourcing partner such as ARDEM helps cater to business tasks in a well-organized and efficient manner for companies to achieve profitability and cost-efficient solutions. With strict compliance and security protocols, ARDEM ensures complete data security.

ARDEM provides Business Process Outsourcing and Business Process Automation Services to established companies to help them improve operational Efficiency and Reduce Costs.  For more information please reach out to us  at or call us at 908-359-2600.