BLOGS

Why companies outsource?

Release Date: March 11, 2021

Ever wonder why the Philippines became second to the most popular outsourcing countries?
We even gained the title of “BPO Capital in the World” after the BPO industry enters the Philippines. As they say, it’s probably because of our hospitality towards foreign and our talent in adapting to the different cultures, especially with the Western countries. But, wait! There’s more!

So, what is Outsourcing anyway? According to Investopedia, “Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company’s own employees and staff. Outsourcing is a practice usually undertaken by companies as a cost-cutting measure.” Basically, to Oursource is to give the job to someone else (a skilled professional) outside of the company.

Again, let’s put Call Center companies as an example. One of the main reasons why companies choose to hire in the Philippines or perhaps in another Asian country, because the salary is inexpensive. US or other Western companies save at least 60 to 75% for the monthly salary of an employee from the Philippines. See the BIG, VERY BIG difference?

Well, for most part, it’s about the savings of a company when doing an outsource because it is indeed cutting company expenditures, but there are other reasons and benefits in doing outsourcing.

Why should you Outsource?

It saves you labor, operational, training and overhead costs. Therefore, instead of you spending time, effort and money preparing everything from hiring to deployment, from workspaces, equipment to supplies, why not outsource? All you have to do is to calculate the cost for their service, in short, their salary or professional fee.

Gives you more time to focus on core business operation/process/task. Let’s take CSR’s work again as an example, back-office tasks such as answering to chats, emails or phone calls or data encoding perhaps, if you do all these work on top of all the major tasks that you need to perform or complete, wouldn’t it make your other task get left behind? Let someone else do all the trivial tasks and you yourself get a lot of your time to the more important tasks. Okay, don’t get me wrong here again. Trivial doesn’t necessarily mean that they are not important, they are still a part of the company’s operations and it’s still important, but it eats up time just answering an email. So, yeah just outsource and let them do these tasks.

Specialize functions and services. If you need for example, an IT expert that can perform different tasks related to IT software and hardware, or perhaps a hiring manager to handle tasks about employment. There are outsourcing providers that are able to provide you with Professionals that have vast experience and are highly skilled in their chosen professions. Therefore, the work intended for 3 to 5 persons within your company, can be delegated to that 1 outsourcing provider that will perform the tasks you request to do because they are experts of the said field.

Shares risk to another company. When you outsource, you share the risk to another company since they will assume the responsibility for completing the functions/tasks that have been assigned to them. Of course, as professionals, you can also expect that the outsourcing company will follow your company’s standards in performing the assigned tasks, you can even expect for a better outcome or result from their work as they will do their best to perform well for a continuous and harmonious relationship with your company.

Functions that you can outsource:

Accounting
Marketing
Legal Services
Sales
Customer Service
Manufacturing
Human Resource
Research and Development
IT Management
Web Design and App Development
Shipping and Logistics
And etc.,

It all depends on your business and what functions you wish to delegate or need help with, you just need to find a reliable outsourcing provider or company that caters to your specific business needs.

Easycom Japan Philippines Inc., offers cost-effective service to support your business management, customer support, IT management, Web and App development and etc. Let’s talk and let us know what functions you need support and expertise with!

Contact Us | Easycom Japan Philippines Inc. (easycom-japan-phils.com)

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