Contact Info Contact Info
Tel:
(+632) 654 0001
Office:
WEB OUTSOURCING GATEWAY
Unit 3101 One Corporate Center, Julia
Vargas Avenue, Corner Meralco Avenue,
Ortigas Center, Pasig City, Philippines

Our Blog

22
Jul

WHY OUTSOURCE? 5 Things on how Outsourcing can Make you a Multimillionaire

Try to look over your business process. For sure, you wanted it to grow bigger, to become a pioneer, to make it a royal business. If so, expand.

How to do that? Try to outsource.

Outsourcing is a long-term, result-oriented relationship of a company with an external provider for activities that would otherwise have been performed in-house (Jacques, 2006, p19). On the other hand, Business Process Outsourcing is a subset of outsourcing that deals with contracting services of one or more business process to a third party provider.

Since there are lot of articles roaming around the net regarding outsourcing and a lot of companies have a success stories out of it, then there must be an explanation how outsourcing makes a multimillionaire company.

1. Healthier Piggy Banks. The first and most obvious advantage of outsourcing comes from the financial ground. Outsourcing hub like the Philippines has a lower operational costs including infrastructure and labor cost. Generally, if properly analysed and executed, this will have a great impact on company’s revenue thus produces total savings of 15%.

In terms of labor cost, like in the Philippines, salaries, excluding bonuses or other non-cash compensation, for junior technical resources are $4,400 to $6,700 per annum. Resources are relatively more expensive at the senior levels, but still modest by US standards. Senior software engineers with 10-20 years of experience can expect salaries of $12,000 to $24,000, which are about 20% to 25 percent of those in the US (Sourcing Line, 2014).

2. An entry to the Global Market. Since you are outsourcing at around the globe, you are elevating the company’s chance to enter the global arena. Intensified by a wide array of talents, a company can higher the capability of global competitiveness.

3. An exposure to pool of highly competitive work force. Companies that outsource have a tendency to get a workforce better than what is not readily available internally. On the other hand, providers in top outsourcing countries in the world provides a resourcing needs and a pool of talented and skilled labor force. In addition, more graduates were produced every year thus making more employees to grow especially in an outsourcing country. These are diligent, hard worker, observe business process practices, educated and well experienced workforce.

4. Gateway to superb quality. Since there is a rise in BPO in the world, which also helped many countries to grow and survive their economy, many worker are now opened to outsourcing job making them more familiar, professional, and expert to the field. One thing to add, these experts can offer quality products or services to customers directly.

5. Lesson learned: a team is the key. This makes you a multimillionaire even you have a small company. An account in this article at number 1 discussed about the cost reduction of outsourcing and that could be a lot bigger than what everybody expects.

What we wanted to point out to this number is the product of your service. The best key to be a millionaire (even not an outsourcing company) is your service itself. There is a huge difference between a successful and unsuccessful company out of outsourcing (some got stuck while some just stop). And that is excellent service. Service is not just for the customer, but also for your internals. Before focusing on the outside force, get to know the inside unit, the team, and the work force. Build relationship anywhere you outsource – from employees to clients, and get bigger money back. How? Create a team. Remember, Michael Jordan will not be an MVP…without a team.

CONCLUSION:

There are always gaps between success and failure. In terms of outsourcing, it is analysis for financial basis and grounds, investment to work outside the comfort zone, and the opportunity to a pool of talents, good management and a team for support.

Tags: , , , ,

  • anne

    I personally agree with your article. As someone who works for an IT Recruitment Agency that outsources talents for numerous companies all over the globe, i found your insights to be highly accurate given the wonderful working relationships we have built both with our employees and clients. Thanks for sharing this. Cheers!

  • http://www.weboutsourcing-gateway.com/ Web Outsourcing Gateway

    Thank you Anne.