Here’s a micro-summary of what you should know about outsourcing for your business.
Outsourcing, offshore staffing, ‘business process outsourcing (BPO)’ and remote work is now becoming commonplace. Businesses are finding that it can save them 70% on staffing costs! They are also finding that outsourcing allows them to focus on core business activities, while other people focus on the non-core stuff.
If you’re in business, it’s important that you at least understand what outsourcing is, and how it can transform your business.
Here’s a super brief summary of things you need to know about outsourcing. You can see the full guide here.
Outsourcing. What is it?
Outsourcing is basically: ‘Hiring staff. Offshore’. You can access highly qualified people for about a 70% discount. The outsourcing firm manages all the backend stuff, so you can concentrate on core activities.
Business Process Outsourcing and its advantages
There is a range of incredible advantages – with the main one being the 70% savings! But it’s also about the 3x amplification of your workforce and resources.
Depending on the stage of your business – startup, SMB, or Enterprise, the approach and benefits of offshore teams are different.
10 reasons why you need to outsource your business
- It reduces and controls the operating costs but increases revenues
- It helps you maximize the use of external resources
- It enables the company to gain access to world-class capabilities
- It can free up internal resources for other purposes
- It requires little to no initial capital investment
- It provides you easy access to trained or expert specialists
- It allows you to focus on the core competencies of your business
- It dramatically reduces the labor and training costs of employees – 60%-80%
- It gives You Instant Access to world-class skills
- It can ensure 100 per cent simplicity and security in the billing Process
What are the easy business areas you can outsource now?
- Administrative tasks
- Customer support
- Financial and accounting duties
- IT operations and management
- Creative services
- Human resources
- Sales and marketing
- Backoffice support
The different types of outsourcing that you need to know
- Professional outsourcing
- IT outsourcing
- Manufacturer outsourcing
- Process-specific outsourcing
- Business process outsourcing
- Project outsourcing
- Offshore outsourcing
Staff Leasing vs. Seat Leasing vs. BPO vs. B-O-T
There are different ways to structure outsourcing depending on where your business is now, and where it will be in the future. Seek to understand the different pricing structures, labor costs and growth options for your business.
Before you start outsourcing
- Identify the roles and responsibilities of your employees
- Identify your perfect outsourcing firm
- Do you need to consult or seek advice from field experts?
How are you going to outsource your business?
There are some important considerations before you start.
- Identify your initial budget or team requirement
- Check the political and business stability of the country and firm
- Set up your business expectations properly
- Know your business benchmark methodology and ratio calculations
- Get ready to prevent talent dilution
- Ensure that communication channels are in place
- Check for the infrastructure quality of the site
Is now the right time to start outsourcing?
Your business has different cycles and outsourcing can be applied in different ways at different times of a company’s life cycle.
Know when it’s the right time to outsource parts of your business, what to outsource, and when.
12 myths and misconceptions of outsourcing discussed
outsourcing lets you lose control of your business
- outsourcing only aims to cut your operational costs
- outsourcing guarantees lack of knowledge on the services
- Outsourcing is only limited to big businesses
- Outsourcing will let you lose the privacy of the company
- Outsourcing means offshoring: there is no difference
- Outsourcing delivers low-quality services and outputs
- Outsourcing weakens the economic status of the country
- Outsourcing adds up to the unemployment rate
- Outsourcing is not a long-term plan
- Outsourcing is only for established businesses
- Outsourcing is way too complicated for small businesses
- Outsourcing your sales force destroys company branding
The Philippines is the top outsourcing destination
- Outsourcing is the single biggest industry in the Philippines contributing 12% to the GDP. Understand how it all began
- Then versus now: see how the Philippines is at the forefront of industry innovation
- How are the outsourcing skill sets in the Philippines different?
- Understand the top firms in the industry and the main players
8 reasons why you need to outsource to the Philippines
- The Philippines is a native English-speaking country. It is the official language with a population of 110m people.
- Labour costs are up to 80% cheaper than most western countries
- You can hire flexible, skilled, and world-class employees
- Filipinos ensure high-quality and excellent services
- Filipinos can adjust to any time zone and working schedule
- You can focus on handling the core competencies of your business
- You can afford to pay the best salaries and hire the best people
- Incredible government support
Real-life success stories – outsourcing benefits everyone
For businesses, outsourcing generates more growth, higher margins, increased profitability, and the opportunity to concentrate on core activities and expand!
For onshore employees, contrary to misconceptions, outsourcing can offer more security and more opportunity to thrive. Outsourcing can increase profitability and resources. This means that the onshore employees have more secure employment, and they can generally focus more on core tasks and roles of higher value-add to the company.
For offshore outsourced employees, outsourcing is an economic godsend. The salaries might look low compared to the Western counterparts, but they are relatively highly paid jobs for that country and offer enjoyable, safe and engaging careers.
The most powerful business tool
Outsourcing works. Businesses are finding that offshore staffing is now becoming an essential feature within an efficient organization. As a business owner, it’s important to understand how outsourcing can transform your business – or your competitors. You can read the full Ultimate Guide to Outsourcing, or book a call and speak to an outsourcing expert today.