Table of contents
In this article, you will learn:
- The pros and cons of business process automation
- What outsourcing is and when it is worth implementing in your company
- Factors to consider when choosing between outsourcing and automation
- Cybersecurity considerations in the context of outsourcing and automation
Every entrepreneur wants their company to grow rapidly, generate increasing profits, and offer the best possible working conditions to their specialists—all while keeping the customer in mind. However, there comes a time when business slows down, and to get back on track, a change in internal processes is needed. There are many ways to improve enterprise operations, leading to long-term savings and benefits. In this article, we will present two of them: automation and outsourcing.
Pros and cons of business process automation
Business process automation brings many benefits and challenges to companies, although the latter usually relate to the implementation process itself as a new initiative within the organization. Automation is primarily associated with increased productivity and process efficiency because it allows for the delegation of monotonous, repetitive tasks, as well as those prone to human error. Process automation technology thus brings cost savings by eliminating the risk of errors and accelerating manual tasks. These advantages later translate into high-level business and financial benefits, as they increase customer satisfaction through improved quality and faster service delivery. In the long term, automation allows for savings despite initial higher implementation costs, which is one of the drawbacks—or reasons why organizations delay the decision to change. We can automate processes in many ways, but one of the most optimal is RPA (Robotic Process Automation). This technology is non-invasive and addresses the biggest challenge of implementing automation in an organization: modifying existing systems (such as ERP—Enterprise Resource Planning) and processes, and convincing staff to embrace change. The flexibility of RPA makes it easier to educate employees and provide them with the knowledge necessary to work effectively with robots. Well-prepared team members will not fear this technology but will instead benefit greatly from automation. They will be able to focus on creative tasks, while previously performed activities will run on their own, or nearly so, 24/7. We describe specific examples of the benefits of implemented RPA projects in this article. Automation and Robotic Process Automation are implemented in various ways because every enterprise has different automation capabilities, business needs, and systems. Therefore, it is worth reviewing at least a few case studies before deciding what such a process might look like in your company.Main benefits of outsourcing services
Outsourcing does not have a single-word equivalent in Polish. We can say it is simply commissioning a service to an external party, such as another company or subcontractor. Organizations usually decide on this step when they do not want to commit to hiring additional internal specialists, which is often much more expensive than third-party services—up to 60%. Outsourcing also requires relatively little effort (aside from the process of analyzing and selecting the best company that can offer the most benefits for our business). The main benefits of outsourcing services are:- Financial savings—we do not have to invest in new employees (i.e., recruitment, salaries, benefits), infrastructure, or technology, as the outsourcing company should provide all of this;
- Faster action—outsourced experts are able to deliver ready-made solutions faster than if we were to develop them internally;
- Better efficiency, knowledge, and experience in a package—as mentioned above, specialists working for the hired company should already possess extensive experience and knowledge, so they work more efficiently;
- We can focus on business-critical issues and invest in further development, leaving certain activities in the hands of the right people.
Is it worth automating processes? Or is it better to use outsourcing?
When the moment comes to consider how to optimize our operations and business processes, the next step is to decide: automation or outsourcing? Which of these options will better serve our goals? It is important to remember that both approaches are effective—cost-cutting, error elimination, and productivity growth are benefits we listed in the descriptions of both automation and outsourcing. It is crucial that if we choose either option but approach the change in our organization half-heartedly and do not carefully analyze the current situation along with future plans, even the best technology or experts from another company will not be able to fully realize the potential of the changes. Taking all this into account, the first step should always be an in-depth analysis of the business we run, all processes, systems, dependencies, and risks that are sometimes not visible at first glance. Then we will be able to determine whether the best solution for us is automation, outsourcing… or perhaps, in different departments and for different processes, both?Data security in the context of automation and outsourcing
One of the most important issues when introducing any type of business change is ensuring the company’s cybersecurity and data security. One must not forget about detailed and regular employee education on this topic, as the human factor is the weakest link in even the most stable and secure organizations. When automating processes and using systems such as ERP or CRM, we must remember about updates—without them, we will lose not only money on later, more expensive licenses but also the ability to flexibly modify options or access new functionalities. That is when security gaps usually appear. It should be realized that in the world of cybersecurity, things are constantly changing; new legal regulations, new technologies, and tools are emerging. If we do not keep up with updates, we will eventually expose our system, which will cease to be protected. In the case of outsourcing, cybersecurity and data security should be one of the key elements when signing a contract. When we start working with another company that will provide services for us, it will usually learn about things that should remain within the organization. It is possible that it will also have access to our internal systems. Therefore, it is good to carefully analyze a potential partner in terms of the security standards they follow and remember about an NDA (Non-disclosure agreement). Then we have greater certainty that even if an external specialist learns about something important, they will not be able to leak that information under penalty. Let us also remember to prepare a risk management plan and choose a partner who is experienced and able to prove their expertise by providing references. Such individuals should also have separate accounts in our systems and adapt to the organization’s prevailing cybersecurity rules—know them and consciously follow them.What factors should be considered when deciding between automation and outsourcing?
There are several factors that should always be considered simultaneously when deciding on automation and/or outsourcing. These are:- Processes: how many we have and how many people are involved in subsequent stages, how often they change, and how standardized and stable they are.
- Organization: how standardized our business is, whether we have different activities in different departments, and whether we use the same tools and processes.
- People: how technically advanced they are, and how well they know the processes and individual tasks.
- Technologies: how complex the technology we use is, and what our short- and long-term plans for its modernization are.
