Globalisation has only just begun and it shows no sign of halting anytime soon. Only businesses that are able to accept, embrace and adapt to this trend can survive. Competition is even more cutthroat and the demand for low-cost and high-yield strategies have been higher than ever.
Couple the competitive environment of the market with its erratic ebb and flow, one thing remains unchanged- the emergence of new business processes that have the potential of making businesses sustainable. One of the most cost-effective ways to generate higher yield is to reduce overhead cost using outsourcing.
What is Outsourcing?
Outsourcing involves internal business functions being handled by an external organization. Under it one will find a more specific category, offshore outsourcing,which is basically the same practice only that the external organization hired is in another country that is different from where the manufacturer or developer of the products or services are headquartered.
It shouldn’t be confused with offshoring, which involves a company moving itself entirely overseas, or establishing a foreign subsidiary to perform its functions in a foreign country.
The offshore outsourcing industry has never been more in demand as a fiercer global competition is on the rise. As overhead costs continue to surge, the influx of companies leaning on business outsourcing double or even triple annually.
In business, time equals money.Having everything processed internally may sound like a lot of savings, however, spending a lot of time on repetitive tasks can take away precious time from where it needs to be allocated (e.g. planning expansion strategies and boosting sales) which can end up in losses over time.
Streamlining your company’s in-house processes and ridding it of the mandatory but time-consuming tasks like bookkeeping, data entry, recruitment (payroll, timekeeping, among others), inventory, purchasing, etc. keeps the key players focused on the fundamental activities that has kept the company successful and growing.
Moreover, business outsourcing provides a more flexible option when it comes to talent management as opposed to hiring in-house.Aside from cost-effectiveness, as you won’t need to adhere to your home country’s government-mandated employee benefits and taxes, it also gives you access to specialized and expert talents that your company might need for a specific period only.This enables you to pay for an outstanding workforce that you might notneedafter some time.
Although some companies see the time-difference between their company and the outsourced company’s countries as a setback, it can actually leverage a company’s productivity.Since these outsourced tasks are done during the after-hours of the home company, it will be like having the company running on auto-pilot while you sleep.
Of course, there will be pros and cons when it comes to the decision of whether to outsource or not but the trick is to know exactly what work needs to be handed off to others and what type of person you need to handle the job.Coupled with an effective management strategy, outsourcing can have a huge pay-off in the long run.
Where to Outsource?
As the outsourcing industry grow even larger than before, several countries have long since claimed the larger chunks of the BPO pie. Not leaving the top ten lists of the best countries in the world to outsource are:China, India, and the Philippines.
China–You can consider this country as the underdog of the industry having been relatively new. However, being armed with the largest population, it will not take long before this country takes off a huge percentage of India’s shares in the global outsourcing industry.
India – This country has been a favorite go-to of those looking to outsource. With language not being a problem, plus the intelligent, efficient, and hard-working workforce that it has to offer, it’s no wonder why it had topped the list for years. And even as it’s sometimes overtaken by the country next in line, still, it’s safe to say that India will still get a grip of its spot for the upcoming years—which brings us to:
the Philippines – A head to head competitor of the India is the Philippines. Being English its second language, a reputation for one of the best work ethics, and with its highly skilled and talentedpeople, this country is beginning to take on the larger chunks of the industry’s global distribution. With the US as its top offshore client, it won’t take long before this country is hailed as the offshore capital of the world.
To Outsource or Not to Outsource?
The question is not if your business will outsource but when it will outsource. As Stephen Covey said, “Outsourcing is inevitable.” Your competitors are either planning or are already doing it. Can your business afford to be left behind? Can you still ignore the advantages and perks of an offshore team? Will you still allow revenue to be spent in unnecessary overhead expenses?
With a growing number of companies proving that outsourcing is successful, you may already have enough reasons to try.
A2B Outsourcing, one of the emerging Australian BPOs in Clark, Philippines offers a wide range of services for businesses curious about outsourcing. If you are a businessasking yourself the same questions about outsourcing, if you want to receive free offshoring advice or looking into developing your first offshore team, A2B Outsourcing’s flexible solutions for short, long term or trial-based outsourcing services can be a perfect fit. Check out what A2B Outsourcing can do for you!