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The gig economy has deconstructed traditional employment. With freelancers and independent contractors making big waves in the world of work, companies can access short-term talent globally without the long-term commitment of a full-time employee.
While gig workers enjoy greater freedom and exhibit similar skills to employed professionals, they may not necessarily be preferred by US companies that value consistency, reliability, and quality. Freelancers, though not all, have a bad reputation for wanting to earn as much cash as they can without putting in the work of delivering premium services.
Understandably, companies want services that are worth their time and money, and outsourcing provides the return on investment (ROI) they need for success. While freelance networks and business process outsourcing (BPO) companies have their edge, US businesses must remain objective and assess whether hiring freelancers or offshore talent suits their needs and goals.
Why Are US Companies Frustrated With Freelancers
From poor communication to missed deadlines, clients have a long list of disappointments they’ve had with freelancers. Many freelancers see freelance work as a get-rich-quick scheme, which can contribute to the growing number of low-quality services in the market. Here are other reasons behind companies’ frustration with freelancers.
1. Some Freelancers Are Scammers
Freelancing is a partnership between the individual and the client. The world has 1.57 billion freelancers, but how many of them can you trust? If you’re not careful, they can run off with your money and leave projects unfinished.
These freelancers lurk on social media and freelance platforms. While the latter may be safer, exercising vigilance through a thorough background check makes a huge difference. At the end of the day, you can’t be too complacent.
2. They May Not Have the Skills for the Task
Freelancers can add whatever skills they want to their profiles, but these skills may not be at a level to deliver high-quality services to clients. While this can be their way of getting their foot in the door, asking the right questions and having them complete a test task can filter out unskilled freelancers from the skilled ones.
3. They Don’t Have Good Equipment
A good laptop or desktop computer is the tool of the trade of any freelancer. This comes in handy for tasks that demand stronger processing power, such as graphic design, video editing, and programming.
However, freelancers without reliable equipment or a stable internet connection set themselves up for delays, productivity loss, and low-quality outputs, which are every client’s worst nightmares.
4. Freelancers Lack Commitment
Not every freelancer lacks commitment. However, the reality of working with freelancers is that they may not always be available for urgent tasks as they juggle multiple clients and assignments. If your business operates in a highly regulated industry, one missed deadline from a freelancer can put you at risk of legal and compliance issues.
5. Their Offer Is Too Cheap or Sounds Too Good to Be True
Some freelancers overinflate their proposals to secure clients, resulting in outputs that don’t deliver the expected results. Likewise, freelancers who sell themselves short may produce substandard work. In other words, you get what you pay for.
6. Communication Can Be A Roadblock
In business, inconsistent communication is a no-no. Freelancers are based in different parts of the world, and sometimes, they may not respond quickly due to their busy schedules and heavy workload. This can cause delays in correspondence for urgent issues that require the freelancer’s immediate attention.
7. Quality of Service Can Be Inconsistent
Working with multiple freelancers can result in inconsistent quality of outputs, which can affect brand reputation and customer satisfaction. Sticking to a single freelancer is great; however, as mentioned earlier, they may not always have the time for your tasks — especially if they are also working on assignments that demand more of their attention.
8. Data Can Be Mishandled
Unlike top BPO companies and agencies with robust security infrastructure, freelancers may put sensitive data, such as customer information and bank details, at risk of unauthorized access and disclosure. If data is leaked, whether intentionally or otherwise, customers can lose their loyalty and trust in your brand — thus leading to legal and financial repercussions.
Freelance vs BPO: Why BPO Reigns Supreme
While freelancers offer specialized expertise and cost-effectiveness, BPO companies are often better choices for US companies. Here are the advantages of a BPO company.
1. Outsourcing Services Are Consistent
The client and the outsourcing partner sign a contract outlining the responsibilities of both parties. That means all deliverables are submitted on deadline, ensuring smooth productivity throughout the workweek.
If you have urgent tasks, a BPO employee is available to complete them without hesitation. Because of that, outsourcing companies like KDCI Outsourcing make for a more reliable long-term partner than freelance talent.
2. BPO Companies Promise Cost Savings
Many BPO companies are based overseas, specifically in developing countries such as India and the Philippines. Because the cost of hiring in the US is more expensive, companies resort to offshore outsourcing to cut overhead and labor costs while still being able to scale their operations and maintain top service quality.
Outsourcing companies do most of the lifting, from sourcing to training candidates. Understandably, they shoulder the cost of employee sourcing and training, so you can enjoy higher cost savings throughout the partnership.
Although you can always hire a freelancer for cheap, building an offshore team is a better long-term investment — if you choose the right BPO partner, of course.
3. An Outsourcing Partner Operates 24/7
A BPO partner operates round-the-clock and on Philippine and US holidays. This allows the outsourcing company to maintain continuity of service to its clients. In addition, BPO employees work different shifts to accommodate the client’s time zone.
Thus, employees onboarded into a US account tend to work the graveyard shift so they can better communicate and collaborate with their client. Hence, any issue that arises during the team’s shift can be escalated and addressed immediately.
4. Communication Is More Reliable
When working with KDCI Outsourcing, client-team correspondences are centralized on a single platform, such as Slack or Microsoft Teams. This makes it easier for the client and team members to contact each other for feedback and technical issues.
5. BPO Employees Are Qualified
Filipino culture places a high value on education. Hence, in most BPO roles, a college degree is required along with relevant work experience or a portfolio. Like most service providers, KDCI Outsourcing has recruiters who carefully vet candidates to ensure that all endorsed employees are the perfect fit.
This way, you can work with individuals who are committed to excellence and can help your business achieve success — whether that’s improved agility or increased website traffic.
6. BPO Firms Maintain Excellent Quality Control
Any reliable BPO company aims to deliver world-class outsourcing services. At KDCI Outsourcing, team leaders and project managers implement quality control protocols to maintain a high standard of output for all team members. They also create manuals and briefs to help members stay on brand, optimize content, and maintain compliance.
Because KDCI Outsourcing and other BPO firms value quality, clients are satisfied with the work offshore teams deliver.
7. Service Providers Have the Right Technology
A BPO firm is not complete without the right technology. From Zoho Books to ChatGPT, KDCI Outsourcing leverages the latest technologies to drive innovation, promote operational efficiency, and enhance data analysis.
8. Outsourcing Companies Prioritize Data Privacy and Security
The BPO industry is known for processing, storing, and handling data. In the Philippines, outsourcing companies are mandated by law to protect confidential data from security threats, including unauthorized data processing and disclosure.
In addition to their strong data encryption protocols, these companies also employ competent IT staff who help minimize the risk of cyberattacks. At KDCI Outsourcing, employees — especially remote workers — are required to practice data privacy measures to maintain confidentiality at all times.
Outsourcing Vs Freelancers: Factors to Consider
The freelance vs BPO debate is a never-ending one. While hiring freelancers is riskier, there are instances when freelancing is a better choice than outsourcing and vice versa. Before outsourcing a department, business leaders must first consider the following factors.
1. Budget
Outsourcing is not a dirt-cheap investment. The cost of outsourcing typically includes the service fee and benefits as well as the hourly or monthly cost of each team member, which varies according to their role and seniority. Skilled freelancers put a high price tag on their services. In most cases, a high price point equates to premium services that drive real results for your business.
However, just as there are cheap freelance services, there are also low-cost outsourcing services — and one must choose carefully. Work with a freelancer or outsourcing partner that aligns with your goals and culture. Before closing a deal, ask questions and request a price quote to avoid surprises.
2. Goals and Tasks
What are your goals? What kind of tasks will you outsource? Do you plan to outsource long-term? Your goals and the nature of tasks you plan to outsource influence your choice between a freelancer and a BPO partner. A BPO company is more suitable for achieving long-term business goals and completing multiple big projects and urgent work on demand.
Freelancers are also suitable for long-term partnerships. However, since they work flexible hours and are not tied to a single client, they may have multiple high-priority tasks that need to be completed before yours. Thus, freelancers are best for non-urgent, short-term projects.
3. Quality
Both outsourcing companies and freelancers can deliver top-tier work and tailor their services to your needs. But for a more uniform quality of output, partnering with an outsourcing service provider is a better choice, as team leaders and project managers assess all deliverables to ensure they meet your standards and expectations.
4. Availability
Unlike the stable availability of an offshore team, partnering with a freelancer can lead to delays in communication, disrupted productivity, and missed deadlines. This doesn’t mean that all freelancers are bad communicators. If you plan to work with a freelancer, set clear expectations and ensure they are responsive throughout all stages of the project or tasks.
5. Security
Joining freelance platforms or freelance social media groups increases your risk of fraud and scams. While there are freelancers who put your best interests at heart, some of them just want to rip you off. Moreover, freelancers who don’t practice cybersecurity or educate themselves on current cyber threats can jeopardize data security.
For your peace of mind, choose an outsourcing company. Outsourcing service providers are legitimate businesses that comply with local laws and regulations, so rest assured that you’ll be in safe hands.
Tips In Developing A High-Performing Offshore Team
When building an offshore team, it’s important to treat it as an investment and an extension of your own team. Here are a couple of tips to help you out:
- Know your goals for outsourcing and identify any talent gaps in your business operations. This allows you to develop a concrete vision of your ideal offshore team and how all members will contribute to your business’s goals.
- Set expectations and establish clear key performance metrics (KPI) to point offshore team members in the right direction.
- Communicate with your offshore team. Schedule weekly check-ins to ensure everyone is on the right track.
Build An Offshore Team With KDCI Outsourcing
Freelancing and outsourcing are the best ways to build a dedicated offshore team. With the unstable nature of freelancing, US companies are now choosing outsourcing companies. BPO firms are safer and more reliable during high seasons, not to mention that they can consistently deliver stellar work under pressure.
Since KDCI Outsourcing’s founding in 2011, we have supported clients in building their businesses and producing results that yield a positive ROI, as evidenced in our case studies, design portfolios, and client success stories. We also employ experts who have experience working in the same industry as your business.
Whether you need an outsourced accountant or a graphic designer, KDCI Outsourcing has got you covered with the right talent for the job.
Need help with forming your dream offshore team? Send an inquiry on our Contact Us page, and our outsourcing expert will take care of the rest!
