Read more on the top advantages of outsourcing your business
Outsourcing—The term has been widely used especially with Business Process Outsourcing (BPO) companies growing like mushrooms in countries like the Philippines and India. But why do many companies invest in outsourcing?
There are many reasons why, and here are the top 5 benefits of offshore outsourcing:
- Save on costs
The biggest advantage of outsourcing is the cost. There are two reasons:
- Employing staff in countries like the Philippines means cheaper labor costs, because the cost of living is also considerably cheaper in developing countries. Thus, you can hire foreign staff for a fraction of a cost in your own country.
- Outsourcing can also convert your fixed in-house staff cost to variable costs. This means that you could pay only for the people you need for your project.
These reasons translate to one thing: You can control your budget more effectively when you outsource versus hiring dedicated in-house employees.
- Hire skilled staff
When a project requires skilled expertise that your in-house staff currently does not support, outsourcing may be the best move. The Philippines is home to many skilled developers, web designers, and many more with more affordable manpower costs. This is the major advantage of outsourcing: paying less without sacrificing the quality of work.
- Focus on your core business
Hiring skilled workers for a specific task that they are experts in reduces the workload of your in-house staff. Outsourced staff can take care of the skilled jobs and other back-office transactions that are critical to your business. This also means that you and your in-house staff can focus on the core activities of your business, which further leads to job efficiency and employee satisfaction.
- Increase hours of operation
Offshore outsourcing leverages the time difference between your company’s location and the location of the outsourced staff. This provides an advantage by utilizing the full 24 hours of the day for your company to be operational.
- Minimize risk
Giving the workload to more competent people by outsourcing reduces your risk of producing low quality products and services. It takes a great level of trust to outsource the critical tasks that need skills and expertise to freelancers and outsourced staff. Outsourcing agencies also have a reputation to uphold and therefore can assure you with great work quality.
There are several other reasons why outsourcing is a good investment and a smart idea for businesses needing skilled workers. You can also read more on the benefits of outsourcing in the Philippines in one of our earlier articles here.