Outsourcing for financial services: myths busted

Outsourcing can be intimidating for anyone new to the concept, especially when dealing with sensitive financial information. Perhaps you’ve ruled it too risky for your business after hearing horror stories? Many concerns regarding outsourcing actually come from unsupported myths.

Let’s take a look at the five most common myths about outsourcing and why they are unfounded.

1. Staff have poor english skills in the Philippines

   In the Philippines English is actually one of the two official languages and 100% of school and university is delivered in English. According to the EF English Proficiency Index, the Philippines was ranked 14 in 2018, with a ‘high proficiency’ rating.

2. Quality standards could be compromised

   The main areas of concern related to quality assurance include: training staff with key competencies for their position, monitoring staff productivity and efficiency, high quality equipment such as internet connection and computers for maximum productivity and communication between the local and offshore teams. When you are considering outsourcing be sure to look for a provider that offers consistent training and monitoring for your staff to ensure optimal efficiency and quality.

3. Data security and privacy could be at risk

   Data security is a major concern especially in today’s digital world. Sending sensitive information and data to a foreign country can seem risky. Modern security technology allows offshore outsourcing companies in the Philippines to safely transmit and store data without it being compromised. Systems such as biometric scanners, IP, lock-down functionality, and secure servers will keep your data safe.

4. Current staff may feel threatened

   If your outsourcing strategy is created and implemented properly your staff will have nothing to worry about and everything to look forward to. There is a common misconception that outsourcing will take jobs away from your local team. This is simply not true. In most cases, offshore staff handle the low value, repetitive, process driven tasks so that your local staff can focus on high-value tasks to help your business grow. Instead of eliminating local staff positions, outsourcing allows your local team to do more of the tasks they enjoy doing. This will result in increased staff satisfaction and retention.

5. Clients won’t like it

   Client satisfaction is key in business and is a major concern when making a decision around outsourcing. The reality is your clients are only exposed to the actual service you offer and your customer service team. This means you can choose whether your outsourcing team is client-facing or internal only.

   For example, if you outsource your loan processing function, your clients will only experience a more efficient business operation and better service from your local team.

At the end of the day there are so many myths surrounding the world of outsourcing but the reality is it is a great way to help your broking business grow during tough times.

If you have any concerns, start by speaking to an outsourcing provider to get all of the right information. Read our helpful eBook that answers 33 common questions for prospective outsourcing suppliers asked by mortgage brokers.