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Understanding the Advantages of Outsourcing

Daven Michaels, 123Employee, Outsourcing in the Philippines, Offshore Outsourcing Services, Call Center Services, BPO Services Company, Call Center Services philippines, Philippine Call Center Services, Business Process Outsourcing Services, Outsourcing CompanyTo an ordinary person, outsourcing a business would seem like a waste of company resources and an additional complication for running a business. This makes sense because after all, why should a company send business abroad when it can be done right at home with a better guarantee for a much higher quality of work? But in the eyes of a businessman, the advantages of outsourcing serve as a modern day bonus for improving one’s business. Outsourcing offers a business the opportunity to transfer important but non-core sectors of business administration on BPO providers that specialize on the needs of the business. This will then provide a company enough time to focus their attention on key areas of the business that will bring more profit and revenue.

The most attractive thing about outsourcing is its cost effective factor. Workforce and IT services within Europe and U.S.  are not that affordable as compared to the same services offered by key outsourcing destinations particularly in Asia. In effect, the advantages of outsourcing are more focused on the inexpensive option of operating a business which can be provided by BPOs at a much lower rate. The inexpensive but productive mass labor force can get the job done at half the price it will cost companies when they decide to have it done onshore.

Annually, a lot of well educated people graduate from the universities with various degrees on different fields. These graduates speak better and more formal English as compared to native English speakers which make it an advantage for businesses who want to break down the communication barrier. The sudden increase of BPOs in the last decade has given these professionals the opportunity to earn higher than what they can earn being employed in local companies. Being part of a BPO provider also offers them with the chance to stay close to home and earn almost as much as they would if they choose to go abroad and look for a job. A BPO employee can earn as much as $500 a month plus other incentives and benefits. Although this may seem to be just a small amount for Americans or Europeans, the conversion rate is huge in countries like Philippines and India. In the end, both parties are faced with a win-win situation and the job gets done with utmost observance on quality.

There is also a sure guarantee when it comes to the quality and productivity of BPOs. Since all candidates are comprehensively trained and with the prospect of earning more than what they can earn locally, they are expected to give the best they can. BPO providers assure their clients that the job is sure to meet the target and will be delivered on time as agreed upon by both parties. The bottom line will be a thriving business on both ends. Client companies will have a cost effective way of getting their non-core tasks completed while BPO providers develop an earning opportunity for the local labor force.

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

8 Responses to “Understanding the Advantages of Outsourcing”

  1. Hilary Hao says:

    Thanks for this insightful guide. I actually run a law firm in the heart of New York and business has been good. I have always believed in the outsourcing philosophy and ready to give it a try. This write-up sure came at the right time. Thanks a bunch. H

  2. Jeff Anderson says:

    Great article Daven. I think the 9th point about staff training is most critical going by the rate the internet changes every day; no one would want staff wasting time on obsolete technology. Your guide is quite useful for me. Thanks. Jeff

  3. True, one of the main reasons why business-minded people choose to outsource is because they’re inexpensive compared to hiring one in their own area. Outsourcing is also specially useful when hiring massive labor force whenever you need them. One thing that I don’t agree about this is your statement that these graduates speak better English compared to native English speakers. At least, generally but not all are better… :)

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