What is Outsourcing?
Outsourcing is a concept people get enthused about. Some business prefers it; others avoid it. It seems as though nothing can galvanize business people in the office than to out-task some services for the growth of the brand.
Companies use various types of outsourcing like; within their own country (onshore), to a nearby country or with the same time zone (nearshore), or to a more distant country (offshore). Businesses often like to outsource services to nearshore and offshore markets to save costs.
A Usual Phenomena
Outsourcing is a business's working pattern in which services or job functions are hired out to a third-party- a stalwart outsourcing company or a freelancer. Normally small groups or companies outsource their payroll processing, accounting, delivery, and many other vital roles — often because they lack choice. In contrast, many large companies opt to outsource to save on further costs. In response, industries have come forward to serve businesses’ outsourcing calls. But still, many businesses miss the benefits of outsourcing in these times.
Although some people will be at odds against it until they get knocked on the head, outsourcing can play a vital role in growth for virtually every business today.
Outsourcing can indeed save money, but that’s not the only good excuse to do it. Smart outsourcing can yield many extended benefits. It has also become a trendy tool for diverse companies around the world because of the subsequent benefits:
Keep reading the trendy benefits below:
I. Business Process Automation /BPA
There always be room for improvement with outsourcing for the companies. One of which is having Business Process Automation (BPA) to reduce manual labor and stimulate outputs.
BPA is a great tool to have in hand when it comes to discharging simple, monotonous tasks that employees are casual with or frenzied to perform for the business. With the fusion of AI (Artificial Intelligence), you can efficiently perform assignments without the need to add up extra staff in your company.
Robotic Process Automation or RPA is, however, the main branch of the automation process. As there are no real robots involved – just software code that stays on user machines or company assigned servers.
Robotic automation has been made to manage front-end work with existing employees meddling in to finalize the project. This human-machine alliance is optimal to boost competence & to embed the best ROI on every outsourcing money spent.
II. Outsourcing Boosts Productivity
The outsourced talent can allow us to balance the business output with ease. With the new projects pop up or brands undergo a sudden rush in demand – outsourcing can provide the track needed to keep pace in the industry.
Outsourcing allows you to hold on-demand” talent resulting in the rapid achievement of tasks without recruiting full-time employees.
It provides the significance of releasing the outsourced workforce once the rush is over with no strings attached.
Should the need for extra help hover again in the future, the same rules apply? You can open up to the same expertise as often as needed to keep operations sailing smoothly. In a word, outsourcing yields a fruitful, reliable workforce ready when you need it.
To become cost-savvy in terms of outsourcing may not be the only reason but it’s surely a major factor. Businesses in these times embrace outsourcing as a means to better control cost over the outsourced function.
Since it turns fixed costs into variable costs, provide a capital resource for investment, and cut off high expenditures in the early stages of your business.
Outsourcing leverage the professionals to get their work done at a very low cost and in a much more efficient way. There is no doubt a huge difference in the wage patterns of the developed and the under-developed companies of the world.
Why we shared this thought with you? Because the workers from the developed countries charged a high price for the tasks whereas employees in the developing countries perform same at a base rate and the difference varies to up to 60%.
In consequence, offshore outsourcing allows companies to get superior services at a low operational cost.
IV. Outsourcing Reduced Risks
Risk assessment and analysis is some of the most important factors in any business project. Every business and business capital must witness a certain amount of risk within their trading campaign.
Logically, market status, competition, financial conditions, state regulations and technologies can change with unexpected effects. Outsourcing the business tasks to the field specialist can become lucrative for you.
As they are trained to detect and manage the risk your business is under which makes them convenient to nourish your brand and make it strong as per your expectations.
V. Outsource Business 24/7
Unquestionably, if your business functions 24/7 then it should cost you a good sum, right?
Nevertheless, it’s quite important for the growth of your business that it shows up 24 hours a day. This probably encircled you by extra shifts of employees and will go big on your business budget.
So how can outsource shift the banners for your business in this regard?
Well, take a sigh of relief! You can vouchsafe services by outsourcing around the clock at a fraction of the cost.
Let’s say if your business is located in the west and you aim to outsource a project to some developing country. So your BPO vendor can keep on functioning in alien hours even when your in-house employees have punched out.
Besides, if your outsourced partners have rooted in a country with cheap salaries, you’ll save a small fortune! This will bring in amazing outcomes for your business as you cater 24×7 to the customers’ needs and concerns.
VI. Tech-Driven Model
Many of the business experts praise the outsourcing of information technology functions and other tasks to earn easy passage to new technologies.
Besides, businesses also need to anticipate the infrastructure cost when it comes to in-house services. Companies that tend to hire-out HR services might choose to do so because embracing a new payroll system is expensive.
The plan behind the outsourcing of customer services is to find the facile means of technology, important for the modern contact centres with splendid support services. The outsourced group has already contributed to the technology against the services you seek—and reps are also upskilled for it.
VII. Better Space and Resource Utilization
Outsourcing can provide you the business relief with the best space and resource utilization. You can use the free-up space for other core business activities rather than confine it to inventory supply storage.
The additional space can also be used to hold inventory for other projects that may seem dispersed due to space constraints.
For instance, by merging with the manufacturer that takes on inventory programs like JIT & Kanban, stock can be delivered when companies need them. Hence, you’ll be able to hold valuable space for the inventory storage which is kept casually for a long period of time.
At times, an entire assembly that is ready for production can be released, no need to store components altogether. Buyers can also simply order frequent goods, knowing they will arrive in time and well assembled.
Importance of Outsourcing- Building a Better Brand
Organizations nowadays live through a global business to take part in the international economy. To counter the success, they should extract the most out of every growth opportunity to boost brand visibility and reduce costs.
An experienced outsourcing provider will drive you through productivity challenges and streamline services, and further add new resources that may be required in-house. Industry heads like LaGrasigns can expedite your business process outsourcing (BPO) and robotic process automation.
Our pro experts can roll out and move fast while rendering the relief needed throughout every phase of the business journey.
Bonus Tip: LaGrasign’s personnel network adds a global workforce loaded with many talented peoples' who maintain strong technical, educational, and industry backgrounds.
Each contractor is vetted ahead of time and guided throughout their work. They bring custom-made skills under your nose and enable you to focus simply on the preferred task.
This postulation will allow you to get rid of hiring or training additional employees, thus empowering existing ones for higher-ROI outcomes. Balancing employee roles with their aptitudes improves engagement and makes for the best use of company talent.
If you’ve ever conceived of outsourcing as a primary source for business, there’s the best time of living it up. LaGrasigns offers versatile package plans based on usual case scenarios but also creates tailor-made solutions across unique brand needs.
Chase for us now; one of our exclusive business reps will serve you and help you get underway.
Don’t wait and drop the game! Your competitors are already capitalizing through outsourcing to succeed. Let’s get started by signing up for a free account, and our sales coordinator will drive you through the process.
The Best Outsourcing Companies Globally
IBM is a New York based IT company carrying out operations in 150+ countries of the world. They offer IT outsourcing and various high-grade BPO services across numerous industries.
The company has now been shifting its charm to fields like IoT, machine learning, & big data analytics.
Leading clients: PayPal, American Airlines, Amazon & Volkswagen
- Business and consulting services
- Procurement strategy
- Staff development
- Talent acquisition
Accenture is a global professional services company with holding headquartered in Dublin, Ireland. It has been fortunate to have an alliance with Google, Apple and Microsoft in the past. Most of Accenture’s clients are three-fourth of the Fortune 500 companies from the world.
The company has been a constant member of the Global Outsourcing 100 with over 10+ years of experience in the field.
Leading clients: World Bank, American Express, 90+ companies of the Fortune Global 100
- Healthcare service management
- HR services & functions
- Support and acquisition services
- E-commerce system and sales
Sciencesoft is an IT service group with outstanding custom software development. The company has its roots in the USA and feed to mid-sized and large businesses globally.
Sciencesoft is also known for its web application and mobile app development services everywhere in the world.
Leading Clients: Salesforce, Walmart, eBay, and Nestle.
- Software development
- IT strategy & management
- Crisis & Quality control
- IT help desk outsourcing
1. WHAT ARE SOME OUTSOURCING PITFALLS AND HOW DO I AVOID THEM?
Common pitfalls might include miscommunication, lack of attention, skill level issues, poor delivery, lack of creativity and security concerns. Many companies now have formed departments like the Vendor Management Office (VMO) to better communicate with their BPO providers.
2. WHEN IS THE RIGHT TIME TO OUTSOURCE?
Are you a core competency service? Or have you reached the edge in your growth trajectory where scaling support teams will pull out from your business mission? When it becomes vital to lift your growth strategy and reducing costs it’s a good time to outsource your business process, customer care, or tech support.
3. WILL I LOSE CONTROL OF QUALITY IF I OUTSOURCE?
You will certainly not lose quality control if your outsourcing group is well-trained in recruiting, hiring or training the outsourcing team. With the best management and quality control methods in place, an outsourced group will ensure that there must be a steady approach to KPI achievement without escaping customer satisfaction.