Fostering business growth is the ultimate reason for engaging Philippines outsource companies. Companies in decades past and presently are increasingly using offshore outsourcing in particular to expand their business territories and to gain global fame. The benefits of outsourcing are the reasons behind the growth of an organization using outsourcing strategy.
Here, we will look at the major benefits of outsourcing that foster business growth.
Cost Saving Benefit; cost saving benefit is the number one in the list of outsourcing advantages. It is the major driving force behind the increasing use of this business strategy. Cost saving fosters business growth significantly. By paying only 20% to hire offshore workers, against the 80% that would have been used to employ workers in-country, a company saves a massive portion (about 60%) on labor cost. Subsequently, the fund is ploughed back into business expansion, ultimately resulting in significant business growth.
Reduced Time to Market; due to speed delivery that comes with outsourcing, a company that increasingly uses outsourcing is able to enter the market faster than its competitors. Of course, the first to enter the market will definitely claim a larger share of the market. On the long run, reduced time to market helps to foster business growth and expansion.
Enhanced Capacity for Innovation; as a company takes advantage of new and latest technology using Philippines outsource services, enhanced innovation is achieved. Subsequently, products and services are enhanced and the company is able to compete favorably with similar businesses. The end product would be business growth and expansion. A business that increasingly uses outsourcing to employ newest technology in its business functions will ultimately become an authority in the industry.
Access to World-class Talents; one of the best ways to access renowned experts in different fields of business is through outsourcing. Ordinarily, most companies are not able to afford such world-class talents. In time past, only the ‘big name’ corporations could budget for such high level expertise. But today, even the small and medium-scale businesses can employ world-class talents through outsourcing. Ultimately, the quality services rendered will help in fostering business growth.
Risk sharing; one of the best ways to manage potential business risk is to outsource. Directly or indirectly, the outsourcing service provider takes a share of potential risks associated with the outsourced business functions. Subsequently, any loss is shared between the outsourced company and the vendor. In fact, sometimes, the vendor takes full responsibility of unforeseen losses that may come up from the outsourced business function. Ultimately, relief from the weight of potential loss helps to move a business forward.
Indeed, outsourcing is a catalyst for change to any organization that uses it increasingly. Luckily, world-class offshore services such as Philippines outsource services are getting cheaper and more flexible.
Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com