Outsourcing Non-Core Service Functions in Field Service
Field service organizations have taken significant steps to transform themselves into agile and digital-first operations over the past several years, and those transformations are ongoing. As part of their efforts, many organizations have chosen to outsource some aspects of their business.
Sometimes, field service teams will outsource core operations to trusted contractors and technology firms. However, field service teams can free up considerable resources by outsourcing non-core functions as well.
According to Field Service News, "The majority of service companies (over three quarters according to research by The Service Council) are already outsourcing at least some of their field service operations. In fact, the same research also shows that when engaged, third parties usually undertake about a third of assignments on average."
Potential Non-Core Services for Outsourcing
Non-core services are any functions that are necessary for business but that aren’t directly related to the products or services provided by a company. In a field service organization, non-core activities could be construed as back-office activities, payroll, answering customer inquiries, and more.
Here are a few of the non-core functions field service organizations are outsourcing.
HR and Payroll
It’s common for companies of all types to outsource at least some aspects of their HR and payroll operations. Third-party HR organizations specialize in offering employees a range of insurance options, easy payments, fast documentation, and digital interfaces that empower employees with more control over their benefits.
Shifting the HR and payroll functions to a third party is an excellent way to free up back-office staff, so they can focus on other critical activities.
Data Entry and Processing
Data entry is becoming obsolete thanks to advancements in automation, data technology, and AI. However, some manual processes may still be required as part of the organization’s data operations. These manual processes can be outsourced so that internal staff isn’t burdened by them.
Other data-related activities, such as data collection, data mining, data cleansing, and transaction processing can also be outsourced. If these tasks are automated or handled digitally, they can even be handled in a third-party cloud environment or datacenter.
IT and Cybersecurity
IT and cybersecurity are now necessary functions for most businesses. Unfortunately, even some major companies don’t have the internal capabilities to manage their IT and cybersecurity needs on their own. This has turned outsourced IT services into a rising global industry—spending on information technology services worldwide is expected to reach $1.29 trillion in 2022.
Even if you have your own IT staff, you may wish to augment your internal capabilities with managed IT services.
Customer Service and Call Center Activities
Outsourcing customer service is perhaps one of the most common forms of outsourcing in field service. Call centers are expensive to maintain internally. Outsourcing call center activities to a third party is an ideal way to save on costs while staying true to the company’s service commitments.
Increasingly, field service organizations are also using automated and digital-first services to replace some aspects of this function.
The Benefits of Outsourcing Non-Core Functions in Field Service
There are multiple benefits to outsourcing non-core functions in field service. It frees up your company’s resources while keeping your core field service operations in-house. Outsourcing also allows the business to scale as needed during times of high activity.
This makes outsourcing a viable option for organizations that need more capacity quickly, are transforming their internal operations, or are entering new markets and require assistance.
To learn more about how field service organizations are outsourcing non-core services to stay agile, don’t miss the next Field Service conference event, happening at the JW Marriott in Palm Springs, CA from April 26th to April 28th, 2022.
Download the agenda today.