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Professional Outsourcing

Definition

What is professional outsourcing?

Professional Outsourcing is the practice of contracting to individual specialists or professionals to handle multiple, small tasks without the intention of outsourcing an entire function. Another term for professional outsourcing is body shopping.

There are times when a business has its own processes well-established and streamlined that there are small tasks or projects that fall by the wayside due to resources already being allocated. 

In those cases, companies have the option to contract those small tasks and side-projects to professionals outside the organization who can work on the tasks independently. Successful tasks or projects that show great potential can then be re-integrated into the company or be further built out with an outsourced team.

Professional outsourcing services

In other cases, for immediate needs (quickly taking advantage of business opportunities, problems in fulfilling a current order) businesses will outsource to professionals on a short-to-medium-term basis. 

In both cases, there is a need for professionals who can handle a surge in workload without unduly stressing the internal resources of the company.

Outsource Accelerator provides you access to professional outsourcing companies from the Philippines starting from $6 per hour, where you can save up to 70% on staffing costs. We make it easier for clients to learn about, and engage with business process outsourcing.

Professional outsourcing services
Professional outsourcing services

Outsourced services definition

Outsourcing is the process of contracting a third party to execute services or manufacture goods that would otherwise be conducted in-house by the company’s own workers and personnel.

Outsourcing is a cost-cutting strategy used by businesses and influences a wide range of professions, from customer service to manufacturing to the back office.

Most commonly outsourced services

Here are some areas of your organization where outsourcing may help.

IT

IT solutions for your company are likely to be at the center of everything you do. After all, there are very few aspects of a business that aren’t filtered through IT in the modern environment.

As a result, you must make certain that it continues to work efficiently.  One of the best ways to guarantee that your IT is always at the highest possible quality is to be able to contact top IT providers.

That way, you can be confident that everything is working correctly without having to spend a lot of time and energy maintaining it.

Marketing

Marketing is one of the most important components of any company. However, especially in the digital era, marketing is frequently far more complicated than many business owners expect. Being able to outsource your marketing is highly useful as a result.

Understanding how to promote a firm in the current day requires a great deal of knowledge and skill, from SEO to B2B to social media. It’s something that third-party organizations can provide in ways that you might not be able to.

Accounting and bookkeeping

Every corporate organization needs this as a basic requirement. The process of documenting daily company activities helps the organization save money while also increasing efficiency and effectiveness.

It will also assist in reducing the workload of various companies, allowing the employer and employees to focus more on the firm’s core purpose.

When you don’t have an accountant, this function of accounting and bookkeeping can be outsourced to experts for better results.

Customer service

Customer service is a vital aspect of every business that contributes significantly to its success. Customers’ feedback is required by small and large businesses to maintain consumer satisfaction. 

Greater customer satisfaction retains and expands the client base, resulting in increased revenue. Every corporate organization’s only aim is to create a chain of good occurrences.

Companies do not take customer service lightly since it is the foundation of every business. It also determines how far companies have progressed. If you need a professional touch, this role can be outsourced to reputable customer care professionals.

Advantages of professional outsourcing

Outsourcing professional jobs have various benefits, including:

Significant cost reductions

Companies only have to pay for the services they acquire, they won’t have to pay extra for benefits and incentives since they are outsourced.

Reduces on overhead expenses

Companies don’t have to worry about overhead expenses like additional office space, office supplies, and computer sets when they recruit an outside business or a freelancer to perform professional services. 

Talent access on a global scale

Assume your workplace is in a remote town where you don’t have access to a top lawyer, accountant, or IT professional. As an employer, you have to recruit the best member of the team and give them the freedom to work from places they want to. It will also help increase their productivity.

Four reasons outsourcing could benefit your business

To understand why outsourcing could be a good idea for your company, businesses must first understand why other businesses do it.

Here are some of the reasons why companies outsource for their staffing needs.

Increase your growth rate

Companies that are growing frequently discover that they would benefit from having additional personnel, but cannot afford the costs of employing and sustaining more full-time employees. This limits the company’s development potential and reduces the progress it has achieved.

Further, outsourcing work is a great method to ensure that your firm maintains consistent development while keeping the core of your team focused on internal duties because it is less expensive than building an in-house staff. 

Maintain your adaptability

Companies can’t demand the same level of employees throughout the year. However,  outsourcing allows you to be more flexible. Without the financial commitment of recruiting in-house employees – which might take years to pay off –  your company can staff up ahead of a peak season. 

Companies can switch back to an all-in-house staff after you’ve made it through a busy season. Further, businesses can scale their outsourcing needs with the help of an established outsourcing agency.

Maintain company focus

Outsourcing allows focusing on your company’s most key internal responsibilities. There are two advantages to outsourcing customer service. 

To begin, you give continuous customer service to your clients. Second, you free up your internal team members to focus on their jobs, allowing your company to function more smoothly and improve your return on investment.

Outsourcing businesses are a useful tool, and the image they portray is beneficial. You can expect professional outsourcing companies to represent your company with the greatest level of quality. 

Small businesses are frequently unable to deliver large-scale customer service. This part of your business might be outsourced to offer your firm a more professional appearance.

Improved brand loyalty 

A well-trained customer service team, supported by professional management, will provide your customers with the kind of service that will keep them coming back. 

Further, your clients will feel cared for and valued as a result of the professional services provided by an outsourcing company.

Outsourcing FAQ

What is Fully Managed Outsourcing?

What is fully managed outsourcing?

Fully Managed Outsourcing is one of the many services offered online by various outsourcing companies. It is a kind of laser-focused management that takes over the business process and tracking of the organization’s KPI metrics, training and development of employees, and quality assurance for the client. When routine tasks and jobs are outsourced, the company will have more time to focus on the more essential aspects of the business.

Fully managed service

Working with a fully managed outsourcing can be beneficial to any specific organization. Despite working offshore, Business Process Outsourcing (BPO) companies can still provide a fully managed service to their clients. They ensure the best operational structure, competitive pricing structure, proven processes, and guaranteed results with their operational overseers. They can build a team and hierarchy; they do well-prepared implementation and alignment; and are also aligned to their high-quality mission, objectives, and culture. This kind of partnership promises a deliverable-based solution that can hit KPIs, targets, and metrics. Lastly, they can ensure continuous improvement as you go along with your business.

Outsource Accelerator provides you access to the best outsourcing companies in the Philippines, where you can save up to 70% on staffing cost. We have over 3,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with fully managed outsourcing.

Offshore outsourcing definition

About offshore outsourcing Offshore outsourcing definition About offshore outsourcing Benefits of offshore staffing Offshore outsourcing examples Offshore vs onshore outsourcing Offshore outsourcing pros and cons Pros of offshore outsourcing Cons of offshore outsourcing Offshore outsourcing Philippines Types of offshore outsourcing  Offshore outsourcing definition

Offshore outsourcing, also referred to as business process outsourcing (BPO),  is the process of having work done for your business using qualified staffing solutions from countries with lower labor costs.

Commonly, IT, sales, and administrative roles are carried out for businesses across the world from countries such as the Philippines and India.

Companies can benefit from accessing other countries that have more resources for people with specialized skills. At the same time, they get quality work at a fraction of the costs.

Like nearshore outsourcing, companies prefer having minor tasks outsourced to a service provider so that the in-house team could focus on the core business functions. One perk of offshore outsourcing for businesses is that they do not need to think about the overhead expenses when they hire domestically.

Overall, the company could benefit from lower human resources costs, equal or higher-quality outputs, and higher profits.

Benefits of offshore staffing

The world is becoming increasingly globalized. Technology, software, and communications improvements now enable easy access to a globalized workforce. This has many advantages, but the primary benefits of offshore staffing are that:

You can significantly cut costs (typically saving 60%-80%) Access large pools of highly qualified and highly capable staff Source staff from across the globe instead of being limited by the local population

The benefits of offshore staffing impact small, medium, and large enterprises across the globe.  These businesses can access more affordable resources to help streamline and grow their business.  This is a win-win for all parties involved.

Offshore outsourcing example

Companies turn to offshore outsourcing for cost savings, cheaper wages, and better quality work. Just like nearshore outsourcing, companies prefer having minor tasks outsourced so that the in-house team could focus on the vital functions of the business.

One popular example of offshore outsourcing is customer service through call center companies. These BPO companies offer quality customer service at a much cheaper rate than hiring locally.

Offshore vs onshore outsourcing

The opposite of offshore outsourcing is onshore outsourcing, which is the practice of outsourcing your business functions and non-core teams to a third-party supplier in the same country where the business operates. It is also commonly referred to as “domestic outsourcing.”

Unlike offshore outsourcing, the business does not save as much on employment costs – which is the main reason why businesses turn to outsourcing in the first place.

Since the outsourcing provider is in the same location, both companies will have the same cost of living and labor laws applied. However, with onshore outsourcing, you wouldn’t have to deal with cultural and time-zone differences.

Offshore outsourcing pros and cons

Companies can turn to offshore outsourcing for almost every business role – whether they’re in need of customer service teams, virtual assistants, bookkeepers, graphic designers, IT consultants, and more.

Further, before diving into the world of offshore outsourcing, it’s best to be informed of its pros and cons.

Pros of offshore outsourcing Substantial savings Access to a flexible, diverse, versatile, and proficient offshore team Experienced and competent team leaders will guide your remote team Diminished operational costs and fewer legal responsibilities (because your outsourcing provider will take care of everything) Cons of offshore outsourcing Occasional delivery delays Time zone, language, and cultural barrier Possible disclosure of confidential information Possible cyber security risks Offshore outsourcing in the Philippines

The Philippines is the leading offshore outsourcing destination in the world. With 1.3 million BPO workers and counting, large corporations and even small to medium-sized enterprises all over the world trust that their Filipino workers and remote teams can provide excellent outputs, customer service, or IT assistance at a cost-effective price.

Outsource Accelerator provides you with the best customer service outsourcing companies in the Philippines, where you can save up to 70% on staffing costs. We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2500+ BPOs… all designed to make it easier for clients to learn about, and engage with, outsourcing.

Types of offshore outsourcing

Here are some types of offshore outsourcing, as listed by Rezaid:

Production offshoring

The actual movement of the physical manufacturing process overseas, generally at a significantly cheaper cost in terms of personnel and materials, is known as production offshoring.

Front-office and back-office processes and functions are the two primary types of offshored processes and functions. Customer service, inbound and outbound telemarketing, virtual assistants, and technical assistance are all examples of offshore.

HR and recruiting, accounting and bookkeeping, mobile and web development, and design and graphics are other examples of production offshoring.

System services offshoring

Information technology (IT) will be a key subject to get right given the multiplicity of procedures and minute-by-minute activities of any corporate operation.

In the 1990s, a huge amount of communication infrastructure allowed nations like India, which has a big pool of English speakers and a technically skilled workforce, to lead the sector by luring companies like HP, IBM, Microsoft, Oracle Corporation, Intel, and Cisco.

Innovation and software offshoring

In computer science and software development services, Asian countries lead the world. High-tech product companies, including those in Silicon Valley, have begun to offshore innovation work to Colombia, Belarus, South Africa, Mexico, and Ukraine.

Using these countries’ highly trained labor pools results in considerable cost savings and faster production cycles.

Reshoring

Reshoring, also known as back shoring or inshoring, is the opposite of offshoring. Companies like Google, Facebook, and Amazon have been criticized in Europe for allegedly concealing income and avoiding taxes. They reportedly did this by booking non-US earnings from major advertisers through its Dublin branch in low-tax havens like the Republic of Ireland.

As a result, it started in January 2018 that it would book those earnings and pay the taxes on those profits in the countries where they were generated.

Want to learn more about outsourcing? Check out the Inside Outsourcing book as well as the Inside Outsourcing book review today!

What is Build-Operate-Transfer (BOT)?

What is Build-Operate-Transfer?

Build-Operate-Transfer is an arrangement found in the outsourcing industry and across other sectors in a technical sense, is a type of concession arrangement wherein ‘Entity A’ delegates the right to build and operate a particular project ‘Entity B’ within a certain period. 

This timeframe allows Entity B to recuperate their investment and profits while Entity A gets a more established business after the turnover.

The BOT setup is typical for government projects such as infrastructure. A common example would be the construction of expressways where the government gives the right to build and operate the expressway in favor of a private business. 

In return, the private entity shall finance the project and enjoy the revenues they can derive within the contract frame. After the given period, the private entity shall be obliged to transfer the ownership back to the government.

How Build-Operate-Transfer contracts work?

A private business is granted a concession by a government to finance, develop, and run a project under a build-operate-transfer (BOT) contract. Once the corporation has recouped its investment, the government assumes management of the project and runs it for a set amount of time.

In general, BOT contractors are organizations founded for a specific project and only for that reason. A single offtake purchaser often provides all of a contractor's revenue during the project period, when the project is being operated.

This may be a state-run or government-owned business.

Build-Operate-Transfer in outsourcing

A Build-Operate-Transfer arrangement enables entities with limited capital and financing to implement their projects with the help of another entity who is willing to start the project.

This type of outsourcing gives way to a broader range of resources and talent, which could contribute to a better and well-thought-out project - read our full BOT article for more information.

A BOT arrangement can take on many forms, but in its simplest and most common form, it is the mutual understanding that a BPO will help build a team and operations for a client and that one day, the client might take that team out on their own and incorporate, or become a 'captive'.

Outsource Accelerator can help set up your BOT arrangement with the outsourcing supplier to ensure that the best terms and prices are provided for your business.

What is What is business process outsourcing?

What is Business Process Outsourcing BPO?

Business Process Outsourcing (BPO) is the delegation of business processes to an external service provider to a nearby or farther location. BPO uses various technology-enabled services to optimize the delivery of services.

Some of the usual outsourced business functions are the following.

Payroll Accounting Human resources Customer service Sales Marketing

In the case of content providers, these could mean hiring writers, remote editors, or virtual assistants.

BPO speeds up processes and enhances efficiency. Companies that outsource some of their business processes use their time on core services and competencies.

With this shift in focus, companies improve their current processes which may result in improved customer satisfaction. BPO helps companies divert their resources to more critical business strategies.

Often, companies find it impractical to hire a full-time position in-house because of the cost associated with doing so. Outsourcing services can also help them save costs and resources in hiring suitable employees.

How does Business Process Outsourcing work?

Business process outsourcing happens when a business taps a third-party service provider to operate some of its internal processes. Such ‘processes’ include customer service, accounting and finance, or sales.

It is different from hiring an agency to do specific tasks, as the outsourcing provider (BPO) is more concerned with the ongoing production of labour-intensive tasks, instead of the higher-level strategy and guidance.

Now, business process outsourcing has broadened and is more akin to staff augmentation, or staff leasing.

What are the benefits of business process outsourcing?

There are many benefits to outsourcing, as well as some downsides and risks. The common benefits include:

Cost savings

Companies can enjoy savings of up to 70% by leveraging the salaries and costs in countries such as the Philippines and India.

Global market

Businesses get to access a bigger pool of talent that can fit their requirements. They can have better options in hiring employees since they are not limited to what is available in their home countries.

Global presence

At the same time, business process outsourcing opens clients to global trade opportunities. They can establish their global presence and expand more easily to other locations since they already have operations in the area.

Flexible workforce

BPO reduces internal local compliance obligations including providing additional office spaces to employees. Instead, organizations can hold their business operations on a remote setup, most usually having their teams in an office provided by the BPO firm.

Leverage skill

Companies cannot always do everything on their own. BPO enables them to leverage the skills of other specialist companies on more complex tasks such as accounting and IT.

Focus

Lastly, BPO enables organizations to focus on their core business functions. This is since most of their non-core business operations are done with the help of a reliable service provider.

Business process outsourcing examples

The business process outsourcing sector is a vast industry, generating over $200bn annually, and employing millions of people worldwide.

BPO can be seen in different forms and contexts, from hiring single staff to getting an offshore team. Some examples of BPO include:

Big enterprise

Facebook and Uber outsource many of their operational functions, including content moderation for Facebook, and customer service for Uber

Medium-size businesses

A medium business with 50-500 staff might outsource the labour-intensive accounting and finance functions to a team in the Philippines.

Small business and entrepreneur

It is common for small business owners to have a Virtual Assistant (VA) working for them full time and remotely from the Philippines.

What are the different types of BPO?

The type of business process outsourcing can be characterised by their specialisation, location, and size.

Generalist or specialist BPOs

Business process outsourcing is in the human resources and professional services sector. However, their services extend across all industries. The majority of BPOs are generalists, in that they offer a full range of professional services.

Meanwhile, some specialise in certain verticals such as the following.

Legal process outsourcing

Legal process outsourcing deals more with delegating legal processes and compliances to legal firms in another area.

Knowledge process outsourcing

Meanwhile, knowledge process outsourcing enables companies to outsource knowledge-related work including research and development, innovation, and creatives.

Location

Business process outsourcing typically operates from developing nations such as the Philippines, India, and Colombia. They typically have cheaper cost-of-living and bigger populations. Different locations offer different advantages.

Size of BPO

The bigger BPOs employ more than 250,000 people. They are huge, global operations. Medium-sized BPOs range from 500-5,000 staff and offer a full range of services. The smaller BPOs might have 1-500 people.

Functions of business process outsourcing

Collectively, business process outsourcing provides any kind of staffing solution. Common functions of BPO include:

Finance and accounting

Outsourced finance and accounting services help businesses manage their books, monitor cash flow, and keep up with corporate income tax compliances without fuss.

Healthcare

Healthcare outsourcing, meanwhile, organizes various back- and front-end functions done for the healthcare and insurance industries.

Creative and content

Creative services outsourcing covers everything from post-production of Hollywood movies to newspaper and website content.

Tech, IT and development

IT outsourcing involves delegating network management, web and app development, and cybersecurity protection to IT firms in different countries.

Sales & customer support

Some BPO providers specialize in sales and customer support for pre- and post-sales transactions. This helps companies meet the expectations and demands of their customers, keeping them satisfied even after their purchase.

Marketing

BPOs and marketing firms can help in ongoing marketing, communication and branding activities for their clients. This helps them attract more suitable leads in a cost-efficient way.

Talent and HR

Businesses can delegate HR, recruitment and compliance to professional employer organizations to maximize recruitment and workforce management.

Administration

Generalist BPOs help organizations accomplish general business administration and operational activities. This includes data entry, appointment setting, and other related functions.

Supply chain management

Lastly, e-commerce stores benefit from outsourcing supply chain management to manage warehouse and delivery processes.

Top BPO companies in the world’s top outsourcing hubs

A wide range of business process outsourcing companies in different parts of the world provide utmost services to their Western and local clients. Many of them even earned recognition by award-giving bodies due to their performance in both their roles and their level of care for the employees.

Check out the top BPO companies in several outsourcing destinations below.

Top BPO companies in the Philippines Top Indian BPO companies Top South African BPO companies Business Process Outsourcing (BPO) services

With the rise of new offshore outsourcing locations, companies can have better options in terms of location and services they can delegate. However, finding a suitable BPO company can be a daunting task to be done on their own.

Good thing advisory services such as Outsource Accelerator is there to help them.

Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2,500+ BPOs from different locations.

Outsource Accelerator's offerings make it easier for clients to learn about, and engage with, business process outsourcing companies worldwide.

Want to learn more about outsourcing? Check out the Inside Outsourcing book as well as the Inside Outsourcing book review today!

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About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 3,000+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.