Outsourcing, otherwise known as business process outsourcing (BPO), means hiring an external individual or company to cater to your business activities on your behalf. This can be done domestically or internationally. Outsourcing has recently become a common practice adopted by small and medium-scale businesses to have some degree of leverage on services and skills they find difficult to develop in-house. The reason for this complication could be because of financial restriction or in other cases, manpower limitations. It can also be a combination of the two. What outsourcing offers is an opportunity to grow your business irrespective of any limiting condition. Outsourcing might help you enjoy continuous business growth without making any major investments. That is if you get the hang of it.
Outsourcing is, however, subject to controversies in many countries and the stance of the argument is that it is one of the factors that cause job loss. This is loud in the manufacturing sector. The ones in support argue that it creates some incentive for their business to allocate resources most effectively. That is, it helps them maintain the free-market nature of business and economies on a global scale.
Fundamentally, outsourcing allows you to focus your business on core competencies. It also ensures that you cut some cost and overall, improve efficiency. All these are very much hassle-free. And, over the last decade, business owners have realized that there are diverse reasons many companies outsource certain jobs. The most prominent reason, however, is to save money.
How Does Outsourcing Work?
Outsourcing begins with lower costs. Many outsourcing companies boast of the required competence and capability to do the work and cut some cost because they have to work with the available resources in their country, where they are more accessible and cheaper. As a result, they have fewer overhead expenses to feel concerned about. The Swiss Quality is a globally responsible consulting firm which provides top-notch outsourcing service across different industries. With our team of renowned consultants and professionals, we deliver accurate processes to manage complex businesses, especially the ones you are not much competent with. That’s all you would ever need. This is such that you can concentrate on other pressing issues, especially your core business areas. We can represent as an outside expert.
Take, for instance, you have found from the analysis that telemarketing is a proven way to bring your business to the limelight concerning a new product or service you are about to launch. But you do not have the required strength and resources to make it happen. A crucial decision here would be to hire an outsourcing company that provides such a service so you can focus on getting ready to manage the tons of inquiries you would get in the long run.
Hence, what The Swiss Quality does is handle the outsourced work. We boast of world-class capabilities that cut across diverse technological strength. We focus on the ones you cannot afford to invest in as a growing company.
Further, if you look to expand, outsourcing is one of the cost-effective means to build business foundations in other nations of the world. These tasks range from bookkeeping to sales, marketing, accounting, development, promotions, design and manufacturing, administrative and back-office help, web development, and customer service, among others.
Categories of Outsourcing
These days, many freelancers or outsourcing providers often fall into one of the following categories regarding the services they provide their clients. Some offer one or more of these:
- Inbound customer service
- Outbound telemarketing
- SEO and Online Marketing
- Back Office/Admin Support
- Virtual Assistant Services
- Accounting and HR Management
- Marketing and Sales Support
- Web Design and Development
As a business owner, you can consider outsourcing as a means of giving away some of your business responsibilities to a more competent and independent entity. This is to ease your business life. Many times though, other than being able to transfer these tasks to a more experienced person or company than yourself, money is saved in the process against hiring local personnel to do the same job. You can cut as much as 60% with that.
Therefore, regardless of your business area, your interest in outsourcing means you are deliberate about expanding your business.
More so, with the emergence of globalization, outsourcing has become one of the most widely embraced business strategies used to deliver outstanding service to consumers within the manufacturing sector and the rest.
Since companies outsource to reduce their overhead in developing a product, and in return, increase their profit margins, outsourcing is a pure business decision. The amount of work done in a country or place of the world is not equally paid elsewhere. The reason for that could be because of the different state and federal taxes, and the economic standpoint of such a country. This makes decision-making economic-bound.
Criticism of Outsourcing
Though seemingly considered a perfect business strategy, outsourcing has some cons. Signing contracts with companies take a lot of time and even a lot of effort from the firm’s legal team. Likewise, security threats are bound to happen if another party gains access to the company’s confidential information, and the party suffers a data breach in the long run. Additionally, you are likely to experience some sort of misinformation or lack of information because of outsourcing. This would consequently birth delay in completing the projects.
To deal with these concerns, The Swiss Quality resonates with the fact that people outsource for the following reasons. This is as established by Deloitte, 2016:
- Reduce or control costs- 59%
- Focus on core functions- 57%
- Solve capacity issues- 47%
- Improve Service- 31%
- Gain access to expert talent and knowledge- 28%
- Manage business environment- 17%
- Accelerate organizational transformation- 17%
Having established that outsourcing is a means of reducing the workload of the staff of a company, and giving their core activities more time for optimal performance, there is no better time than now to join the train and let out your incompetent or unskilled labour to a competent and reliable vendor. Choose The Swiss Quality!