Top 6 Mistakes to Avoid When Working with a Business Process Outsourcing Company


Are you considering outsourcing some of your business processes? If so, beware of common mistakes that can lead to problems down the road. In this blog post, we'll share the top 6 outsourcing mistakes facing wealth management firms and independent financial advisors. From failing to thoroughly vet providers to not having a clear plan in place, these errors can cause big headaches and money. So read on to learn how to avoid the most common mistakes when outsourcing your business processes.


  1. Working with an outsourcing provider that is not familiar with your business model. Do your research and make sure you're partnering with a company that specializes in working with businesses just like yours and has a proven track record of success in your industry. While outsourcing admin tasks may seem like a general competency of all outsourcing providers, we know the needs of a wealth management firm are vastly different than the needs of a law firm. Not all business process outsourcing providers are equal.

  2. Not clearly defining your goals and objectives. What do you want to get out of outsourcing your business processes? Do you want more time to spend with clients? Are you planning on growing and need to ramp up operations? Reduce staff? Contingency plan if a key employee leaves? There are many reasons to look to outsourcing and having clear goals and objectives will help ensure the new partnership is a success.

  3. Underestimating the cost savings and other benefits of BPO. Don't just focus on the bottom line; make sure you're considering all the potential benefits of outsourcing, including improved efficiency, reduced processing time, and better customer service. What is the true return you can expect to see if you shift tasks to an outsourcing provider? And how will you quantify this return over the first 3 months, 6, months, 12 months to ensure the decision was a correct decision? Your new outsourcing provider should agree with you upfront on how you will measure the success of the relationship.

  4. Failing to properly assess your needs. Not all wealth management firms and independent financial advisors operate in the same manner. Take the time to speak with the outsourcing vendor to do a thorough assessment of your current business operation. If the outsourcing vendor does not have a discovery process in place to help determine what is working, what is not working, and what can be improved, then you probably want to keep looking for a provider.

  5. Lack of communication. Make sure you have a solid communication plan in place, outlining who will be responsible for what and how often everyone will come together for reviews. This could mean leveraging communication and task software such as Jira, Trello, Slack, standing weekly calls, and more. Make certain the business process outsourcing provider can demonstrate how they communicate with clients and be sure the process is one that you can adopt.

  6. Get references from current clients. Looking for and selecting a new service provider can take some time. Before you commit to any provider, make sure you get references from other businesses that have used their services. Check out online reviews and see what others are saying about the company's work ethic, professionalism, and customer service. If everything looks good, then go ahead and schedule a meeting with the provider to discuss your needs. By doing your research upfront, you'll save yourself from costly mistakes further down the line.

Choosing the right business process outsourcing provider leads to significant strategic advantages for financial advisors by freeing up time and resources that can be used elsewhere in the business. This allows for more specialization and a greater focus on core competencies, which in turn leads to increased efficiency and better customer service. However, the implementation of a BPO solution should not be taken lightly; there are many risks that need to be considered. Planning for the risks associated with outsourcing will allow you to avoid common mistakes and reap the rewards associated with outsourcing.


Contact us to learn how business outsourcing service works and how we have helped wealth management firms and independent financial advisors just like you for more than 12 years: advisors@allbackoffice.com or (919) 741-6104