THE BENEFITS OF OUTSOURCING
The Benefits of Outsourcing
Business Process Outsourcing is a thriving industry. From start-up companies to major international firms, outsourcing from offshore provides several advantages and conveniences to companies of varying size and scale.
1. Cost efficiency. Cost-cutting is one of the primary reason why companies outsource. Companies benefit from acquiring quality services at lower costs. Most highly-qualified resources come from Asian countries, such as the Philippines, where labour costs are cheaper compared to western countries. Labour costs are cheaper because the cost of living is lower. A person can live comfortably with an average salary of $500 a month which is not so possible when living in most countries. Another great cost-cutting advantage of outsourcing is eliminating training and skill-up costs on certain projects. Companies can switch costs from these Human Resources activities into other vital business investment allocations.
2. Access to skill-specific experts. Companies do not always have appropriate staffs for certain tasks. Outsourcing gives companies the liberty to immediately hire experts in specific fields. Outsourced experts can do tasks with a higher level of productivity and better time-efficiency since they have the right tools, techniques, and specialisation. In addition to having external experts performing better than in-house employees, the latter can acquire new skill sets as they work alongside outsourced experts.
3. Immediate project kickoffs. Companies that need to start on new projects immediately do not usually have the luxury of time in training and allocating employees. Therefore, they could take advantage of the on-demand workforce from reputable outsourcing companies. They could instantly acquire appropriate employees that can jump in immediately regardless of time constraints. A good outsourcing firm could immediately allocate proper and flexible workers into the company at any given time. This is made possible because outsourcing companies continuously endeavour on having the immediately-available and on-call workforce to allocate on varying projects and tasks.
4. In-house efficiency. Outsourced staffs that work alongside in-house employees. This enables in-house employees to focus on the important or urgent tasks. This provides harmony on task workflow. Thus, making company operations course through with better productivity and efficiency.
5. Flexible Staffing. Companies can maintain and enjoy staffing flexibility as they take advantage of outsourcing. Sometimes, certain situations give uncertainties on business demands. Outsourcing irons out the need for continuity on staffing when requirements are low. This eliminates the need to maintain regular employees on the tasks that can be independently done by outsourced staffs. On the other hand, when the demands are higher, companies can always swiftly and conveniently hire an outsourced workforce.
6. Continuity of Operations. Inevitable situations experienced by in-house employees can cripple certain company operations. Outsourced staffs can always jump in to fill the gaps. They could be immediately allocated and work on vacated positions to ensure a continuous flow of operations.
7. Operate round-the-clock. Since work is done offshore, like in the Philippines, outsourced staffs work in a different time zone. They can complete deliverables during wee hours and deliver at the start of the day. This ensures continuous operations even on non-working hours.
8. Focus on the essentials. Since processes are handled externally, companies are not required to oversee operations. They can focus on core activities and essential tasks vital to company's sustainability and further progress.