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Gaining Competitive Advantage Through Outsourcing

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Over the past several months a number of our posts have discussed the operational advantages of outsourcing back office processes. From reducing overhead costs to streamlining your operations, outsourcing provides benefits that have an immediate and positive impact on your bottom line. Yet, while focusing on back office processes, outsourcing can generate competitive advantages for your front office. With this post, we look at a few areas where outsourcing can provide such advantages.

Faster Service

Regardless of the industry you’re in, one constant result of advances is technology is the increased speed in which services are provided. Amazon, for example, believes that 24-hour delivery will soon no longer be fast enough and is exploring drone technology to cut delivery time from days to hours. While we could debate the reality of drone delivery, it is companies like Amazon that are conditioning the general public to expect immediate results from entities with whom they do business.

Of course, not all products and services lend themselves to turnaround times that can be measured in hours, real estate being one. However, as the general (think home buying) public expects shorter turnaround times, service providers will be forced to find tools to meet this demand. Outsourcing is such a tool. At String, we operate on a 24-hour schedule 365 days a year. With around-the-clock operations, our large team of real estate professionals can compress your turnaround time-frames from days to hours. Giving you the ability to meet or exceed increasingly shrinking time-frames that are likely unachievable by your competition.

Increased Focus on Customer Service   

The documentation needed to close a real estate transaction is extensive. Processing this documentation in house presents two draw backs, first there is the overhead expense of the staff required to process the documents and second, if you are using customer facing staff to process documents, it takes them away from servicing your customers.

Our clients who retain us for document preparation can free up their staffs’ time to focus on more critical task, specifically servicing customers. With more time to address the needs/demands of their customers, our clients can offer a superior customer experience to that offered by their competition. A valuable advantage considering that for business partners and customers alike, the quality of the customer service provided will determine whether customers return to you with future business.

Competitive Pricing

We’ve spoken frequently about the cost saving associated with outsourcing, specifically if the work is outsourced off shore, and the resulting benefit to your bottom line. However, cost savings can also translate into a reduction in the fees you charge. On average our clients realize a 50% savings on the work they outsource to us. For clients operating in price competitive markets, a 50% cost reduction that is transferred to their customers through reduced fees can create a competitive advantage that cannot be easily matched by competitors.

 A Stronger Work Product

The increase in regulation and oversite that our industry faces has been a frequent topic of our posts. Last week we talked about working with a business partner to manage quality control and assure regulations are met. On its own this makes good business sense, but it can also provide you with an advantage over your competition. By running your closing packages through a third-party review process, such as our quality control program, you can be assured that you are providing your customers with a complete and accurate closing package. For our clients, we take this one step further as our SSAE 16 and ISO 27001 certifications guarantee that we have in place the proper plans and procedures to protect the integrity of their data from start to finish.

Most discussions on the benefits of outsourcing focus on the internal cost and time savings that are realized through outsourcing. While these are undoubtedly key benefits, they are only one side of the outsourcing coin. If you are considering outsourcing, attention should also be given to how outsourcing can enhance your operations and, by doing so, generate competitive advantages for your organization.

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