Benefits of Outsourcing
The 21 st century saw a revolution in the business world. Technology made it easy for businesses to expand and achieve their goals. Globalisation has had a very positive effect on all organisations. Yes, the competition has increased tenfold but you can’t deny the benefits globalisation brought the world.
With technological advancements and the increasing trend of globalisation, communication between individuals and businesses from different parts of the world has become easy. This ease of communication made it easy for organisations to establish business units in other parts of the world. This is called outsourcing.
Outsourcing has become a very important aspect of a business. Nowadays, it’s become a norm to establish extended business units in other parts of the world to enjoy benefits they couldn’t reap in their home countries.
5 MAIN BENEFITS OF OUTSOURCING
Importing certain raw materials can cost you more than an end product. Instead of importing raw materials from a foreign country, set-up a factory there and create a process of which materials to produce and outsource. The next step is to assemble and finish the process to get the end-product, eventually reducing the overall cost of your business. The same goes for service staff. Countries like the Philippines is known to be a great destination for business process outsourcing and outsourcing. This is because the labour cost in this particular country is less expensive than local employment costs. In addition to that, Filipino professionals speak well to fluent English, an ideal requirement for customer support staff.
More Professional Staff
We can take an example of a business process outsourcing here as well. People in countries like the Philippines have been working in outsourced call centres for years. Their years of experience and developed skills get them ahead of other professionals working in the same field.
A company looking into hiring more support to deliver better customer services can hire experienced professionals from countries like the Philippines. Aside from lower employment costs, they have more and more available professionals with exemplary skills and experience in various fields.
There is no denying that some countries are technologically more advanced than others. Outsourcing can help you take advantage of that technology. For example, a company focused on the allocation of their resources to work on things all related to space might want to check foreign lands with the same resources. America, Russia and China are at the forefront of the space race. Space organisations can also look into lesser-known countries that companies like NASA support.
Another example is the IT industry. Many companies have much greater and advanced tech and setting up extensions of the organisation in that area can place the organisation in a much better and advanced space compared to its competitors.
Outsourcing gives you access to larger markets. Fact is not everyone in your home country will appreciate your products or services and purchase them. In the world of open global trade, limiting your organisation’s offer to a single country is equal to limiting your business potential. You need to access other markets where people may be open to trying your products or services.
A bigger market means a bigger audience to introduce your commodities to. This is why businesses tend to send their products to European markets, China, or India. With the help of an outsourcing and outsourcing company, your organisation will have the ability to market these offerings in a more personal way. Catering to about millions to billions of individuals will require dedicated personnel who will handle marketing-related affairs to guarantee that the company meets its goals.
Outsourcing lets you hedge different types of business risks. The stock market may be going down in your country, or there may be a political turmoil or a natural disaster. No matter the reason, outsourcing can help you hedge against all sorts of risks. Suppose you have a business in Country A and an outsource business unit in Country B and another outsource business unit in Country C. Now even if there is a turmoil in country A, the business units in Country B and C will be able to provide leverage and financial stability to the entire company. The same way if anything happens in country B or C, the headquarters in Country A will still stay safe and financially stable. This is one of the most important benefits of outsourcing and outsourcing to your business.
Outsourcing offers more benefits to organisations. These are just some of the major benefits that establishments can enjoy through outsourcing. If you are stuck at a single place in your company and can’t seem to find a solution, the solution might be lying in outsourcing certain divisions of your business. You are bound to see the results you desire. Outsourcing a business unit can actually increase productivity for the entire company.