Why Outsource – 7 Answers to the ‘Big Question’

Ep 011 Derek Gallimore

Today, Derek and Arnold will talk about why companies should outsource. They shared their insights and first-hand knowledge regarding outsourcing and focused on seven reasons  why companies should consider outsourcing to the Philippines.


  • Outsourcing is sometimes called offshoring but it is well known by the term BPO.
  • First, According to Cal Newport, “any work that can be done by someone that can be trained to do that job in a week or two should not be done by you”. This is mainly about creating a more efficient and productive way of doing things.
  • Second, if you choose to outsource, staffing and labour costs are a lot cheaper. You can cut salaries up to 50%
  • Third, 24/7 coverage for a cheaper cost resulting to quicker response rate when it comes to answering customer queries.
  • Fourth, it provides the owner additional skillsets that might be quite difficult to develop by themselves.
  • Fifth, The Philippines also has access to specialist’s skillsets. Good examples are VA’s and contact centers. Freelancers are also increasing in number these days, like in Upwork and Freelancer.
  • Sixth is that if you have a company servicing the UK then you are stuck in the UK. Having said that, servicing the US at the same time would be a crazy leap. Whereas, if you develop a significant operational hub in the Philippines then it’s not big a step if you create another executing hub in the US. It is almost a stepping stone towards internationalization of your business.
  • Seventh, Outsourcing forces you, as a business owner, to go through a maturation of your company processes.

Key Points

  • Outsourcing, not only cuts a company’s staffing cost by more than 50% it also gives companies the opportunity to reallocate their savings to more important functions of their company.
  • Outsourcing allows companies to gain the upper hand from their competitors. Since they can enjoy 24/7 coverage for a cheaper cost resulting in quicker response rate when it comes to answering customer queries.
  • Outsourcing allows company owners to learn new skills that they normally would have the difficulty developing on their own.


  • outsourceaccelerator.com/podcast/episode11


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