There are many factors you must consider before you choose to outsource your business operations. You must weigh the outsourcing pros and cons in order to make an informed decision. Though the main reason for outsourcing your business may be to save money, you may find yourself incurring other expenses not in your budget. Outsourcing refers to the process of sub contracting business operations to a 3rd party contractor. A great example of this business approach is outsourcing human resource. Therefore, before choosing to outsource a portion of your business, you must be aware of the advantages and the disadvantages.

Outsourcing has made it possible for companies to acquire highly skilled labor at good prices. This pro has aided the small businesses to grow at a much faster rate. Workers’ wage rates in the developing nations are much lower than in the developed countries. This fact is an outsourcing pro and con depending on which side of the coin you choose to look at. In the developing nations the workers are not unionized and therefore the wage rates hardly improve in these nations. It’s a great pro to the companies that choose to outsource abroad due to this factor.

Another pro for the companies that choose to outsource abroad is that they are not charged any form of federal or state tax for the employees they choose to hire. This is also an outsourcing pro and con. It’s a pro for the company because the operational costs are greatly reduced and a con because the companies are able to take advantage of this fact. The developing nations have no work assistance programs set in place and so the wage rates of their workers continue to be low.

Another pro to consider is that outsourcing your business allows companies to reduce the operational costs significantly as compared to if you they chose to carry out the operations themselves. There are no training costs incurred by the companies. The reduced salary also plays a key role in the reduction of the operational costs. The outsourcing pro and con of this is that the companies reduce their costs of operations and do not need to incur other costs such as equipment purchase and maintenance. The con is that the outsourced company incurs all these costs and still pays there workers low salaries.

The small business enterprises take advantage of the fact that outsourcing allows them access the latest technology available. They are able to afford these services as compared to if they chose to acquire the technology themselves. Another plus for these companies is that they are able to acquire employees that work on site 24 hours a day.
Daven Michaels Author of the book Outsource This!

E-mail outsourcing has been highly criticized and has also been highly acclaimed. E-mail outsourcing involves the use of the internet to enable the delivery of business process outsourcing. This approach takes advantage of the Application Service Provider (ASP) delivery model. Due to the growth in demand for email services which has grown exponentially, this has caused a continued strain to the IT experts who now find it difficult to meet these demands due to their limited resources. The following outsourcing pros and cons explain the functions of this approach.

The outsourcing pros and cons weigh against each other and vary according to the critics or those that highly applauded this approach. One of the many advantages of outsourcing enterprise email is that it frees up the IT resources. The IT department is allowed to focus on other projects but the major downside of hosted email is that you lose control of this function. Since you’ve outsourced, that particular company has the complete control and hold of all the data. It is important to therefore note that if you choose to use this approach, you must be ready to set compliancy rules and regulations and the security issues with the outsourced agency.

Another explained outsourcing pro and con is that that this approach allows centralization of all functions. It’s a great plus because it is more cost effective for the company since servers are no longer required in each office location. All email resources can be found in one data center. The con of this is that there may be conflict created in the functionality of the premise-based gear that relies heavily on expensive office equipment and the cloud-based service which improve the agility and eliminate the IT equipment costs.

Email outsourcing has allowed various organizations whose core competencies do not include IT services to have the opportunity to provide these services to their clients. Though this has been made possible security of incoming and outgoing email is not guaranteed. Viruses have been acquired through this approach. Machines are infected daily because of this. Another upside of this approach is that it makes it easier to monitor traffic across different users, domains and networks. Threats can be easily detected.
Though there are many outsourcing pros and cons, once a company decides to outsource its email, it becomes relatively simpler to focus on key areas of the business such as team collaboration, VOIP, web audio, enterprise instant messaging and video conferencing. All these additions make the communication gateway easily accessible to the staff in the company.

In summary, the pros of using this approach include: the costs met are fixed based on the number of users; it frees up the IT staff to tackle other issues; it adds layers of security to the emails; and it allows consistency with the trend to outsource non-core business operations. The major con of using this approach is that a 3rd party is entrusted to operate critical email operations and there are various security issues that affect sensitive data due to the involvement of a 3rd party.

Daven Michaels Author of the book Outsource This!

When a process outsourcing company enters into a contract with a service provider, it has set its own objectives on what is to be achieved at the end of the process. There is, however, no guarantee that all or any of the goals will be achieved. Due to some shortcomings, the company may feel that it is not getting what it bargained for and want to terminate the contract before the contract expirers.

While terminating the contract, the process outsourcing company should not go directly into cutting ties with the provider since it might fail; a lot of factors need to be considered. First, look at the provider’s economic status since the contract is being terminated before the end of the agreed period. Bear in mind that premature termination of the contract might leave a provider stranded financially since it had invested a lot of money in the outsourced task. The service provider might also decide to seek legal redress for the breach of contract which might not go well for the company.

A process outsourcing company should further notify the service provider well in advance of its intention to terminate the contract. Make sure you have already prepared the termination fee as agreed upon prior to partnering, however this can be complicated if there was nothing of this sort agreed upon. Never rush into terminating a contract with the service provider if it will be the ultimate loser, as the company may take stringent action which may harm your business in the future.

Always have a budgeted transitional plan in place because moving from one provider to another or to an in-house programme. This is always expensive to a process outsourcing company. The company will in the long run realize that outsourcing is cheaper than transitioning since the latter comes with its own challenges that might require more money and time. An intelligent company will always have a plan B as an alternative in case the current contract crumbles before it is fully implemented. Again, never terminate a contract when you are not sure who will take over the process.

The process outsourcing company should at all times have a good communication plan so that the termination of a contract does not develop into a shameful circus. The provider might prefer using the media to pin down the company over breach of contract thus the need to have an in-house communication plan. The company must also be flexible to accommodate the interests of the provider. For example, if the provider asks for some time to source for another client give him a short extension which will develop into a win-win situation.

Daven Michaels Author of the book Outsource This!

Outsourcing customer service is a means of providing quality services to clients in a bid to lower costs and increase efficiency. This is mainly done by big companies that are desperate to boost their productivity. Companies that are experiencing speedy growth and an expanded customer base are usually tempted to turn to this. As they grow big, the customer services they handle increase, hence outsourcing becomes an alternative way of handling them regardless of the pros and cons of outsourcing.

Despite outsourcing being a way of cutting costs, some unexpected losses that are not initially anticipated by the company may arise. This is why one has to be wary of the pros and cons of outsourcing. On the positive side, outsourcing customer service exposes the company to cheap labor this goes down well with the company since it will result in cost cutting.

Payment aside, outsourced labor is far cheaper than when the company performs this task internally. This brings down the operating costs, as it offers an opportunity for the negotiation of lower salaries for employees from the hired company. Other pros and cons of outsourcing is that the company gains access to the latest technology in the market which it has not yet acquired. The nature of the work performed by outsourcing companies allows it to be conversant with the latest technology; hence this technological expertise will be brought in to your company.

Outsourcing shields the company from incurring extra overheads in training its employees. As such, it is cheaper to hire employees through the outsourced company than train its own and later incur expenses through paying their salaries. Also among the pros and cons of outsourcing, the company is able to record improved growth since workers get a chance to work in shifts that fit their schedule. Nobody feels oppressed. The company is also able to concentrate on its main activities after outsourcing other jobs to a qualified service provider.

The negative impacts of outsourcing include employees  feeling insecure once some jobs begin being outsourced. This may result in lowered morale among the workers affecting the company’s productivity. Others may even opt to leave. When the outsourced workers do a shoddy job, customers start losing faith in the company and may turn their back on its services. There is also the risk of leaking out customer information since it’s not under the control of the management but “outsiders”. The management may also lose total control of the company since it is under another party hence the need to consider both the pros and cons of outsourcing.

Daven Michaels Author of the book Outsource This!

When you are looking to hire an SEO outsourcing company, the country where it is located is an increasingly important consideration. The Philippines is emerging as a premiere destination for outsourced SEO and even non-SEO services. The number of SEO companies based in the Philippines has grown exponentially. The Philippines has nowadays outranked numerous other Asian countries that were traditionally leaders in outsourced services. This mainly because of a focus on service delivery, quality and professionalism.

The Philippines has thus provided a foundation for the SEO outsourcing company based there to provide service that is less risky and more reliable than those companies in other parts of Asia. That said, no country is free of con artists and scam business persons. Therefore, the basic principles of thoroughly scrutinizing a company before committing to it is important if a business is to get an SEO outsourcing services provider in the Philippines that is worth their time. The good thing is that the Philippines has proven to be one of the safest outsourcing destinations in Asia.

Another reason that has made the Philippines a great place for an SEO outsourcing company is that its culture is more similar to the west than other Asian countries. A good part of the culture and the work ethic portrays what one would see in the west. Little wonder The Philippines has been ranked 2nd only to India when it comes to providing outsourcing solutions. The Philippines also has a diverse and technically skilled population that would make it easy for companies there to choose from many skilled SEO experts. The large literate population (It is estimated that over 80% of the labor market is literate) also means businesses in the Philippines are better able to meet the demands of multiple clients and at a low cost. Recent research has show that Philippines SEO outsourcing companies rank highest in terms of quality of the SEO services they provide.

The government in the Philippines has also created labor laws that permit foreign businesses to employ services at low rates. The foreign companies that choose to establish a partial or fully owned subsidiary or joint venture in the Philippines are provided with several incentives to encourage them to continue to invest in the Philippines. It is safe to say that the future is bright as the SEO outsourcing company based in the Philippines is concerned.

Daven Michaels Author of the book Outsource This!

Business Process Outsourcing is the delegation of some business processes such as human resource to a third party contractor or service provider. Many companies nowadays outsource large segments of their product and service supply chain. Due to the rapid growth in sub contracting, the BPO industry has expanded to include various types of services BPO a company can opt for. Of these, data entry is one of the most popular types of outsourcing. Data entry outsourcing has to a great extent been made possible with availability of high speed fibre optic cables in the developing world as well as internet access. The following are some of the most important types of data entry services BPO.

First, data processing. This involves all types of data processing services such as form processing, check processing, insurance processing, survey processing and image processing. The repetitive tasks involved in data processing outsourcing helps a business to lower its costs and get rid of time consuming processes. Data conversion is another type of BPO service. Here the provider takes raw data and converts it into different outputs depending on the requirements and formats the client prefers. For instance, there is PDF conversion, Document conversion, XML conversion, Document digitizing and RTF Conversion. The BPO service provider may convert from tables into databases or convert information from one system into a format that can be read by another system.

Numeric data entry is another data entry services BPO that has seen growth. The processes covered here include telecom billing and medical billing. Given the nature of the data, accuracy is the most important thing. Just a seemingly simple mistake can cause a negative ripple effect on the company’s reputation and its relationship with clients.

Another type of data entry is online data entry. Here, the services BPO provider is expected to provide the information exclusively through the internet. Strictly speaking, this is not a type of data entry but a means of entering data. Its counter method is offline data entry. Another type of data entry that can also be considered simply as a means of entering data is Optical Character Recognition (OCR). OCR uses technology to convert printed documents, filled forms and in some cases hand written text into a digital data that can be manipulated in the same way as computer entered data. Other types of data entry services BPO is the creation of e-Books.

Daven Michaels Author of the book Outsource This!

Business process outsourcing is where a business hands over the execution of a given task to a third party. When looking at services BPO, many people will quickly think of IT outsourcing. And while it is true that IT outsourcing is the most common form of outsourcing, there are many other processes that businesses can and do outsource to a third party.

Companies may relocate a portion of their business process to another institution located either within or outside their home county. Often services BPO are considered by a business because of the direct cost savings. Outsourcing makes it possible for a business to lower its production costs thanks to the lower wage rates offered by the outsourced companies and thanks to their access to cheap but skilled labor. However, some companies may choose to relocate their facilities to another country where the cost of direct operation may be high but where there are numerous tax advantages. The business may access these tax advantages by either one of several ways. It could be by employing a large number of persons within that country or simply by owning or renting a business premise in that country.

Services BPO have been discussed at great length mainly around the impact outsourcing of services has on economies of the world. It has been argued that when companies outsource, they deny employment opportunities to citizens in their country and thus affect the purchasing power of the people in that country. Though the products and services are offered at significantly lower prices, the number of consumers willing and able to buy these products and services may experience a substantial decrease.

There is a counter argument on services BPO. That is, it has greatly stimulated and spurred economic growth in developing countries. This is because it brings about more job opportunities which in turn increases the number of people in the middle class in that country thus raising the overall standards of living. Of course when this takes place for a long time, the wages of the persons in the developing country start to go up and may eventually make outsourcing to that country seem increasingly unattractive. An example of this is in India where as more companies have outsourced their services there, the booming economy has seen the wages of employees start to shoot up and approach a similar level as wages in developed countries.

Daven Michaels Author of the book Outsource This!

When a company decides to outsource, it contracts most of its non-profit making activities and less important activities to specialists in that field. It is done in two main ways; information technology outsourcing and business process outsourcing which differ depending on the services offered by the outsourcing company. For outsourcing to be deemed successful companies must have requisite strategies in place that can ensure they sail through the entire outsourcing period since stalling  is a sign of failure.

And to forestall such failure from befalling the outsourcing company, it must approach the entire process with seriousness. First of all, it ought to be conversant with the information it puts across through its advertisement. It is a bad idea for a company to advertise for a job when it does not know what it is looking for. In this case, when a service provider bumps on a company’s “not so clear” advert, he or she may disregard it if the company doesn’t know what it advertised for.

The outsourcing company also needs to practically demonstrate, from a user’s point of view, how the service it is seeking will work. By not doing this the service provider might offer services that the company never wanted. It is therefore, important to note that whenever a company opts to outsource, clear specifications must be given to avoid any contradiction with the provider. Likewise, the service provider should regularly update the company on the progress being made because it is easier to fix problems at an early stage than when the work is complete.

Language is yet another factor that the outsourcing company must look at before engaging in outsourcing. The success of this process is largely dependent on how a company relates with its customers. When hiring a service provider, it is essential to know whether they are well acquainted with the local language of your customers because if they can’t communicate effectively then the company might end up losing all its customers.

Outsourcing is all about cost cutting. With this in mind, the outsourcing company should go for a provider whose work has been tested and proven over time. An experienced provider will do his work quickly and efficiently since it’s something he is used to. In contrast, settling for a rookie provider will cost the company because instead of doing the work the provider will be seeking to gain initial experience to boost his credentials.

Daven Michaels Author of the book Outsource This!

BPO is an acronym which stands for business process outsourcing. BPO services can be traced back to the 1800s when Americans used Scottish workers to build ships and wagons. Services bpo tools that are mainly used by large organizations to reduce costs and increase productivity. What does services bpo entail? It simply entails that a company chooses to outsource some of their services and concentrate on the core functions of the business. Such core services may include increase in the production capacity or expansion of the firms operations. The BPO industry is growing at a very high rate. The industry is expected to grow further over the next decade. That is why very many people are taking advantage of this industry by opening their very own BPO businesses. Below are a few tips that should help you in case you decide to open your own BPO business.

The first thing that you should do is conduct thorough market research. Research will help you in choosing the perfect business to open. It will also help you to avoid getting into a business that has no market. Other things to consider are the human resources. Another thing that you need to consider is the competition in the market. What are the implications of the competition, will your business be able to survive in the competition?

After that you should register your business with the relevant authorities. The requirements may differ from one place to another. The fees will also vary with the location of the BPO company. once you have registered the company, you should look for operating space. When looking for operating space, you should put in mind other requirements such as electricity needs. Finally you should apply for business from the companies that will need your services. This may take a little longer but patience pays. You should also come up with a portfolio that will act as a sign to your clients what you can do for them.

As you have seen it is very simple to open a services BPO company. With the industry ever growing, you should take advantage of opportunities that come with the growth of the industry. In the long run, you should maintain the quality of services you offer your clients. In so doing, you will attract more clients and maintain the existing clients.
 
Daven Michaels Author of the book Outsource This!

There are very many offshore seo outsourcing company. However you should choose the company that best suits your requirements. Offshore outsourcing is cheaper as compared to onshore outsourcing. That is why very many companies are now outsourcing SEO services to offshore seo outsourcing company. SEO companies seek to increase exposure of the particular website. If your website is well optimized it will definitely rank higher on the search engine results. There are very many advantages of outsourcing any services to offshore companies. Below are some of the merits of outsourcing SEO services to an offshore seo outsourcing company.

An Offshore seo outsourcing company charges much less for their services as compared to an onshore outsourcing company. as a result the company that is outsourcing the services saves costs and the money saved can be channeled to other important projects in the company. this is the main reason as to why very many companies outsource their SEO services to offshore companies. The labor costs in the country where the offshore outsourcing companies are located is very low as compared to the developed countries.

Another advantage of outsourcing the SEO services to an offshore seo outsourcing company is the fact that there are competent and qualified experts. If you want to outsource the SEO services to such companies, you can be assured that the quality of the services they provide is very high.

The governments of these countries also supports the growing outsourcing industry. For instance the outsourcing industry is expected to grow further over the next 10 years. Hence the governments of the countries where these companies are located does all they can to protect these companies. After all they get revenue from these companies in terms of taxes from the companies and from the people they employ.

However you should not go for any seo outsourcing company. before choosing an outsourcing company you should know a little more about that particular company. how many years have they been in business? Do they have positive reviews from their previous clients? These are the questions that you should ask yourself before choosing the seo outsourcing company to outsource to. It would be advisable to shortlist the companies and then pick the top three. From there you can eliminate the companies that don’t fit your criteria. In the end you will remain with one seo outsourcing company which should be the best to outsource to.
 
Daven Michaels Author of the book Outsource This!