What is Outsourcing? Best Services, Types and its Process

Outsourcing is a prevalent practice that businesses use to help them focus on their core competencies and enhance their productivity.

June 10, 2024


10 mins

Shara Zareen

Shara Zareen

What is Outsourcing? Best Services, Types and its Process


What is Outsourcing?

When an organization hires another company to help complete specific tasks without compromising its core operations, it is called outsourcing. Instead of handling certain business functions or processes internally, tasks are outsourced to external service providers. These tasks can range from routine and non-core activities to specialized functions.

Outsourcing organizations like SquadStack provide telecalling services to businesses across various industries, including e-commerce, brokerage, and education. These services assist them in achieving their organizational goals, enhancing productivity, and benefiting from focusing on their core tasks.

Boost your Outreach with SquadStack's Outsourcing Services

Meaning of Outsourcing in Business

Let us take the example of a small business that witnessed a sudden increase in its sales. The business needed help to cope with customer service and handle increased demands. Therefore, it decided to outsource an external company to provide customer support on its behalf. Outsourcing allows businesses to work smoothly without worrying about their non-core functions.

Best Lead Management Software for Telecalling Teams

Why Your Business Needs Outsourcing Services?

An outsourcing company has become a prevalent business requirement. With countless advantages like risk mitigation and 24/7 services, these outsourcing companies provide specialized services to other companies based on a formal agreement. Let us understand the key reasons for assigning business processes to an external vendor.

Cost Saving: Third-party service providers are known for providing skilled agents at an affordable cost. Moreover, it significantly reduces management bandwidth by eliminating hiring and training responsibilities.

Reduced Risks: To mitigate legal and operational risks, external vendors train their agents, which helps them adapt to market fluctuations and ensure they are well-versed in regulatory compliance. Regulatory compliance refers to the laws, regulations, and guidelines set by the Government or other regulatory bodies to govern the business’s operations. The cost of hiring trained telecalling agents is very high. However, SquadStack significantly reduces this cost by offering telecallers work-from-home opportunities, thus eliminating overhead costs.

Access to Specialized Functions and Services: External vendors possess specialized knowledge in specific domains. Outsourcing allows companies to access the unique skills of external experts and reduce the risk of errors. It enables businesses to stay updated on the ever-changing industry trends and advancements with access to the latest technologies and tools.

SquadStack can seamlessly integrate with standard CRMs and offer custom in-house CRM integration. We increase connectivity rates by providing omnichannel outreach and avoid spamming by checking for DND and duplicate numbers.

Increased Efficiency and Productivity: Outsourcing enables businesses to focus on core activities, increasing productivity and efficiency. The large pool of agents from around the globe is skilled in various domains. They help fulfill each task efficiently, enable around-the-clock operation for increased productivity, and reduce the risk of talent shortage.

What is SquadStack’s Agent Management Platform?

Outsourcing Strategies

Advantages & Disadvantages of Outsourcing

Outsourcing has various advantages and disadvantages. Outsourcing eases the tension of overhead costs and manages risks, but on the other hand, there are always data and brand security concerns.

Let us look at some arguments that can help you make a well-informed decision when outsourcing a part of your business.

Benefits of Outsourcing

Disadvantages of Outsourcing

  • External vendors care for all the non-core functions, allowing companies to focus on high-priority business-related tasks. 
  • Companies might lose control of their outsourced function if expectations and requirements are not thoroughly discussed during the onset of outsourcing. 
  • Trained and specialized professionals are readily available for specific tasks and projects. 
  • Differences in work culture and standards could raise quality concerns. Moreover, the company's reputation will be at stake. 
  • Flexible working hours lead to faster task completion. 
  • Delegating business processes to a vendor with geographical and cultural differences can make communication challenging. 
  • Outsourcing helps businesses establish their presence in the global market without physical offices in various locations.
  • Sharing sensitive business information with external bodies raises data security risks and increases the chances of breaches, especially if strict protection rules are not followed.

What are Various Types of Outsourcing Services in Businesses?

There are four commonly used outsourcing services. Each one delegates different parts of the business process to an external vendor. Let us explore their unique features and distinguished services to better understand the distinct types of business delegation.

Outsourcing Services
Image: Delegate Your Business Processes to an Outsourcing Vendor

Business Process Outsourcing

When a company utilizes the assistance of an external vendor to carry out specific non-core tasks, it is known as BPO or Business Process Outsourcing. BPO services can include customer support, human resources, finance, accounting, and other administrative tasks.

Check out SquadStack vs. Your Traditional BPO

Knowledge Process Outsourcing

Knowledge Process Outsourcing(KPO) is a specialized form of contacting services that require significant domain expertise and a deep understanding of specific industries or knowledge domains. Common functions of KPO include market research, data analysis, legal services, and financial analysis.

Information Technology Outsourcing

ITO delegates services related to information technology, such as software development, technical support, infrastructure management, and network services.

Manufacturing Outsourcing

In this type of outsourcing, an external manufacturer is hired to produce components or complete products. Various stages are involved in this process, including design, production planning, quality control, and distribution.

Commonly Used Outsourcing Models

Outsourcing models refer to companies' approaches to delegating specific business tasks to an external service provider. The three primary models are

  • Offshore Outsourcing: In this model, non-core or specialized activities are assigned to an external service provider in a different country. Organizations often opt for this model as offshore destinations offer lower labor and operational costs. Offshore outsourcing provides access to a global talent pool and enables businesses to acquire specialized skills.
  • Nearshore Outsourcing: A business practice wherein the client company contracts a third-party service provider from a nearby or neighboring country. The closeness between the client company and the outsourced vendor facilitates convenient communication and collaboration. Nearshore outsourcing reduces the risks associated with language and cultural differences.
  • Onshore Outsourcing: This is also known as Domestic outsourcing. Unlike the other models, the contracting company and the service provider are in the same country. Onshore contracting might involve slightly higher labor costs, but it is advantageous regarding time zone synchronization and facilitates easier collaboration due to reduced language and cultural differences.

Click here to learn the benefits of call center outsourcing.

Outsourcing Models
Image: Different Outsourcing Models Serve Different Business Needs

Steps To Follow Before Outsourcing Sales Functions

Companies outsource various functions such as human resources, sales operations, telecalling, and customer support. However, a company must follow the below steps to outsource a process or function.

  • Evaluate the need for outsourcing within the company's operations, determining whether external expertise can augment efficiency and effectiveness.
  • Choose a suitable vendor or external agency based on compatibility with organizational goals, technological capabilities, and industry reputation.
  • Negotiate and finalize the outsourcing agreement, encompassing detailed discussions on pricing models, service level agreements (SLAs), and delineation of responsibilities for both parties.
  • Facilitate the transition phase by ensuring a seamless transfer of knowledge and resources between the client company and the selected service provider through comprehensive documentation sharing and training initiatives, laying the groundwork for a successful outsourcing partnership.

Leverage SquadStack’s Plug-and-Play telecalling solution and set up a virtual call center in just 15 minutes. Click here to know more.

Plug-and-Play, SquadStack's Telecalling Solution
Image: Plug-and-Play, SquadStack's Telecalling Solution

How to Choose the Right Outsourcing Services Partner?

Choosing the right partner requires careful consideration and evaluation. Before searching for the right vendor, understand and define your needs, expectations, and objectives. Do proper research to identify potential partners. Apart from the reputation and industry experience of the service provider, listed below are a few more factors you must consider while selecting your outsourcing partner.

  • Check the cost-benefit to ensure that your partner provides quality services at a reasonable price and helps you save money.
  • Client testimonials. These are social proofs, demonstrating the partner’s capabilities and trustworthiness.
  • You must consider the time zone and location differences because they are crucial for effective communication and collaboration.
  • Understand the partner’s data security measures, as nobody would want their sensitive information to be misused.
  • Check if the vendor has professional experts.

How SquadStack is Helping Customers Across Industries

Several companies from diverse industries have outsourced Squadstack to fulfill their sales requirements. Our services have helped organizations optimize their telecalling operations, ensuring high-quality customer interactions while focusing on their core business activities. Through these partnerships, Squadstack demonstrates its commitment to delivering exceptional telecalling services and meeting the evolving needs of its clientele in today's competitive market environment. Let’s look at our successful outsourcing examples.

Click here to learn more about our success stories

Upstox Increased Its Activation Rate By 40%

Upstox, founded by Ravi Kumar, Kavitha Subramanian, and Shrini Viswanath, has emerged as a prominent investment platform in India, offering accessible online trading through both web and mobile platforms. However, the fintech brokerage industry had significant challenges, including selling to customers with limited financial knowledge and navigating through their applications. To address these issues and enhance its sales performance and customer engagement, Upstox sought a strategic solution.

Outsourcing Example: Upstox
Image: Upstox Increased its Activation Rate by 40% with the Help of SquadStack

Challenges Faced

Selling to customers with limited financial knowledge presents a significant obstacle in the fintech brokerage industry. The constantly evolving regulatory landscape adds complexity, requiring continuous adaptation to maintain quality and compliance.

SquadStack's Solution

Upstox partnered with SquadStack, their sales outsourcing partner, to address these challenges for a fully managed sales service. SquadStack's comprehensive solution included fully managed services, a team of on-demand sales experts, and AI-driven outreach. This approach facilitated rapid sales ramp-up, enhanced customer connectivity, and allowed the Upstox team to focus on critical tasks without the burden of managing a large sales team.


Through SquadStack's assistance, Upstox witnessed a 40% boost in activation rates on their platform, with a remarkable 55% activation rate achieved in a tailored campaign. SquadStack's sales experts played a pivotal role in Upstox's account opening campaigns, assisting customers in seamlessly opening Demat & Trading Accounts, with over 740 highly trained sales callers guiding leads through the process. Additionally, SquadStack's team helped in activation and reactivation campaigns, driving more revenue per user by encouraging existing customers to place their first order on the Upstox Pro App and reactivating dormant accounts. These results highlight the effectiveness of SquadStack's solutions in enhancing Upstox's sales performance and customer engagement.

Delhivery Improved Its Service And Operational Efficiency

Delhivery is a leading player in India's logistics industry, committed to creating a top-notch commerce operating system. Focusing on infrastructure, logistics, and technology, they aim to empower customers with flexible, cost-effective supply chain solutions.

Outsourcing Example: Delhivery
Image: SquadStack's Services Streamlined Business Operations for Delhivery


In the complex C2C business, even minor failures can lead to significant setbacks. Delhivery faces operational hurdles, particularly in managing customer-related delays, which prove challenging to filter out internally. Additionally, expanding and training the customer service team takes time and effort.

SquadStack's Solution

To address these challenges, Delhivery turned to SquadStack's outsourced model. SquadStack streamlined processes with custom workflows, simplifying operations without needing in-house technical solutions. This setup enhanced accountability, ensured consistent service quality, and provided a clear point of contact for improvements.


By partnering with SquadStack, Delhivery achieved results close to perfection, meeting their expectations for efficiency and effectiveness. The simplified process and enhanced accountability led to notable improvements in service quality and operational efficiency.

Moneyview’s Loan Application Submission Rate Increased By 40%

MoneyView, a fintech firm, specializes in providing personal lending services through its user-friendly app. It offers quick and flexible financing options with competitive interest rates and personalized solutions ranging from ₹5K to ₹5L.

Outsourcing Example: moneyview
Image: We Helped Moneyview Improve Their Loan Application Submission Rates by 25-40%


MoneyView needs help in scalability and security amidst its rapid growth. While outsourcing telecalling could alleviate some challenges, the necessity for reliable partners and data-driven solutions poses difficulties. Internal resource constraints also hinder focus on high-leverage activities and impede quick scaling.

SquadStack's Solution

To address these challenges, SquadStack implemented tailored solutions. They improved loan application submission rates by 25-40%, surpassing internal benchmarks, resulting in a 40% increase in loan applications. Additionally, SquadStack provided an intuitive dashboard for data-driven customer insights, enhancing user experience and refining marketing messaging. The dashboard also facilitated comprehensive campaign monitoring and system-driven calling, improving lead connectivity by 154%.


With SquadStack's assistance, MoneyView experienced significant improvements in loan application rates, customer insights, campaign monitoring, and lead connectivity. Additionally, SquadStack ensured enterprise-grade data security measures, providing assurance and compliance with regulatory standards.

Medfin’s Collaboration With Squadstack Led To More Appointment Bookings

Established in 2017 by Arjun Kumar, Sidharth Gurjar, and Arun Kumar, Medfin specializes in efficient daycare surgery, offering patients access to cutting-edge medical tools, top surgeons, and faster recovery at reasonable rates. They advocate for accessible healthcare across India, aiding patients with financial tracking, insurance, and hospital paperwork to prioritize their well-being.

Medfin Collaborated with SquadStack to Increase Their Connectivity and Appointment Bookings
Image: Medfin Collaborated with SquadStack to Increase Their Connectivity and Appointment Bookings


Finding a trustworthy and well-trained telecalling team in the healthcare sector proves challenging. Medfin required a partner capable of adapting to their lead flow and business needs, providing highly vetted and knowledgeable telecallers to manage appointment calls and medical details efficiently. Flexibility in scaling operations according to business requirements and ensuring quality analytics posed additional challenges.

SquadStack's Solution

Medfin sought a solution from SquadStack, leveraging their fully managed and continuously monitored telecalling team to enhance connectivity and appointment bookings. SquadStack's offering included accurate data capture and an intuitive analytics dashboard, giving Medfin transparency and control over their campaigns. Furthermore, SquadStack's highly screened and CEFR-certified telecallers, trained through a multi-step program, equipped Medfin with a qualified team to meet their sales objectives.


By partnering with SquadStack, Medfin experienced increased connectivity and appointment bookings, supported by accurate data capture and comprehensive analytics. SquadStack's highly trained telecallers contributed to Medfin's success by effectively managing appointment calls and medical details, enhancing overall campaign performance and outcomes.

SquadStack's Partnership Resulted In Aakash BYJU's Reaching 15 lakh Leads In A Week

Established by J.C Chaudhry in 1988, Aakash Educational Services (AESL) began as a private coaching center and has since grown into a prominent tutoring organization, operating over 300 centers across various cities in India. Alongside AESL, Chaudhry has founded several brands, including Aakash IIT-JEE, Aakash Foundation, Aakash iTutor, and Aakash Live, and developed ANTHE, the Aakash National Talent Hunt Exam.

SquadStack's Partnership Resulted In Aakash BYJU's Reaching 15 lakh Leads In A Week
Image: SquadStack's Partnership Resulted In Aakash BYJU's Reaching 15 lakh Leads In A Week


Aakash BYJU's faced the challenge of reaching 15 lakh students within a week for the ANTHE exam, as many registered students failed to appear for the exam for various reasons. Additionally, deploying a large in-house telecalling team for this one-time project would disrupt ongoing operations and pose time constraints for hiring, training, and managing thousands of telecallers.

SquadStack's Solution

To address these challenges, SquadStack provided Aakash BYJU's with an on-demand telecalling team, allowing them to reach 15 lakh leads within a week without the hassle of recruiting, training, and managing an in-house team. SquadStack implemented omnichannel communication, reaching out to leads via calls and WhatsApp, and rapidly scaled up by hiring and training over 3000 telecallers within a few days. Their analytics dashboard offered complete campaign visibility, enhancing accountability and transparency.


With SquadStack's assistance, Aakash BYJU's reached their target of 15 lakh leads within a week, saving time, resources, and money. The omnichannel outreach ensured leads were accounted for, and the rapid scaling facilitated the seamless execution of the project. Additionally, the analytics dashboard provided by SquadStack increased accountability and transparency throughout the campaign.

Looking For Best Call Center Outsourcing Service Provider

SquadStack has revolutionized telecalling by combining human expertise with innovative technology to deliver outstanding results. With over eight years of business experience and robust infrastructure in multiple locations across India, SquadStack is the definition of innovation and reliability. We have been trusted by leading businesses expanding in sectors like brokerage, lending, healthcare, logistics, etc.

Integration of Expertise and Technology

SquadStack's success comes from its ability to combine human expertise with advanced solutions. SquadStack has 10,000+ mobile agents in tier 1, 2, and 3 cities to provide flexibility, scalability, and connectivity. SquadStack leverages an AI-driven system for lead management, call strategy, and call analysis to provide businesses with insight and efficiency.

Pan-India Availability and Flexible Deployment Model

SquadStack's pan-India availability and flexibility of deployment model reflect its commitment to accessibility and flexibility. Whether you work from home or in the office, SquadStack allows customers to customize their outsourcing strategy to meet their unique needs. SquadStack's comprehensive service ensures efficient and effective operations from Delhi NCR to Mumbai.

Integrated Technology Solutions for Improved Performance

SquadStack's key differentiator is its use of technology to provide solutions. Unlike traditional BPO systems that rely on disparate tools, SquadStack offers an end-to-end ecosystem with a call center, CRM platform, campaign management tools, and analytics dashboards. This integration enables operational efficiency, improved efficiency, and transparency, making SquadStack a leader in the outsourcing industry.

As a result, SquadStack's combination of expertise, technology, and flexibility makes it the leading outsourcing partner for businesses looking to improve their operations business and drive growth. SquadStack is committed to innovation, transparency, and value, enabling customers to succeed confidently in today's complex business environment.

Image: Reasons to Choose SquadStack's Outsourcing Services‍
Image: Reasons to Choose SquadStack's Outsourcing Services

Key Takeaways

  • Outsourcing enables businesses to focus on core operations by delegating non-core functions to specialized external providers like SquadStack.
  • Benefits include cost savings, risk reduction, scalability, access to specialized skills, and increased efficiency.
  • Different outsourcing services cater to various business needs, including BPO, KPO, ITO, and Manufacturing.
  • Selecting the right partner involves cost-benefit analysis, reputation, expertise, data security measures, and location.
  • SquadStack stands out as a leader in call center outsourcing, offering scalability, flexibility, specialized functions, increased efficiency, and integrated technology solutions for improved performance and growth.
Outsourcing needs? Connect with Experts

What is the meaning of outsourcing?


Outsourcing is the practice of contracting tasks, services, or operations to external vendors or third-party providers, often to reduce costs, access specialized skills, or improve efficiency and flexibility.

What is BPO (Business Process Outsourcing)?


BPO is a narrower concept of outsourcing wherein a third-party service provider is contracted for business processes like customer support, HR, and finance.

What is an outsourcing company?


An outsourcing company is a company that provides its expertise to an organization in need.

How does the company ensure data security when outsourcing services?


Data security is a top concern in service procurement, especially when data is sensitive. Reviewing measures such as encryption agreements, confidentiality agreements, compliance with business standards (e.g., GDPR, HIPAA), and complete audits of incoming outsourcing partners voluntarily solve this problem.

What are the key benefits of customer service outsourcing?


Outsourcing offers numerous benefits, including cost savings, access to specialized skills, increased efficiency, flexibility in resource allocation, and the ability to focus on core business functions. It allows companies to leverage external expertise, scale operations quickly, and adapt to market changes swiftly, fostering competitiveness and growth.

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