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Why Exactly Do Companies Outsource Tasks?


Wondering why companies are constantly engaging outsourcing as a business tool? The reasons are not far-fetched and are worth all the efforts. Outsourcing is an old business tool. It has been used in decades past to accomplish great feats in big corporations. Till date, certain outstanding benefits accrue to businesses that leverage outsourcing to carry out business functions.

For the following reasons and more, companies will continuously outsource business tasks;

Access to World-Class Talents

This reason and benefit tends to be one of the recent additions to the reasons companies are increasingly using outsourcing solution. In time past, the major focus was cost-saving. But right now, many companies go beyond their immediate location to find the best possible talents and skills for the task in question. For instance, India and Philippines tend to be the most popular offshore hubs for highly skillful programmers and customer service reps.

The best part is that companies even save much more when they hire these world-class experts from other countries compared to hiring their onshore counterparts. Thankfully, the internet and the world wide web have eliminated distance barrier in accessing the best talents from around the world. Philippine is the best call center outsourcing center for many U.S. based companies. It’s so seamless that the persons on the other end do not know they are not speaking with a U.S. based customer rep.

Affordable and Quick Way to Fill a Skill Set Gap

Another newer development in the benefits that companies seek with outsourcing is the possibility of filling a skill-set gap. Companies no longer have to wait for months trying to find a suitable person for a vacant position. In fact, over time, companies have discovered it is more sensible and highly cost-saving to use outsourcing to quickly fill a vacant position. This is especially true for business functions that are short-term oriented.

For instance, it’s faster, cheaper and more effective to hire a web developer through outsourcing platform. At the completion of the project, you can quickly cancel the contract, hence there won’t be any need to continue paying salary. If you have a need for such expertise in future, you can hire different a web designer and disband the contract again when the project is completed.

Other Benefits

The old but evergreen reason companies outsource is to save cost. When employees use their own space, equipment’s and utilities to complete a task for a company on outsourcing basis, the company saves huge costs on those facilities. One of the aspects that outsourcing helps a company to save huge cost is in the area of overhead costs.

Also, a company gains competitive advantage by using outsourcing to accomplish tasks faster.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.

One Response to “Why Exactly Do Companies Outsource Tasks?”

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