The internet changed completely the way we work and interact. Do you need a software program ? No need to build your own software development department, you can outsource the job!
What is outsourcing ? Many of the individuals or companies that provide outsourcing services are able to do the work for considerably less money, as they don’t have to provide benefits to their workers, and have fewer overhead expenses to worry about, especially if they are based in a non-Western country, such as India, China or where I am based, here in the Philippines. Outsourcing also allows companies to focus on other business issues while having the details taken care of by outside experts. A perfect example would be knowing that telemarketing is the best way to get the word out in regards to a new product or service you’re launching (either locally, nationally or internationally), but admitting that it’s not really your forte. You can hire an outsourcing company that provides these services, whilst you concentrate on getting ready for the influx of inquiries as a result of the campaign.
Outsourcing can be a good option when the functions of your back office are complicated in nature and the size of your company prevents you from accomplishing them at a consistent and reasonable cost. The overhead costs of performing a particular back office function can be extremely high. Consider outsourcing those functions that can be easily moved. Example: A small doctor’s office wants to accept a variety of insurance plans. One part-time person can’t keep up with all the different providers and rules so the task is outsourced to a firm that specializes in medical billing, often at a cost that’s less than what it would have required hiring additional, skilled personnel or train existing personnel.
One of the primary reasons why a business may want to outsource a task is when it requires skilled expertise. To allow you to focus on your core mission in providing a high quality product and service to your customer offshoring the task to people who can perform it better makes sense. Workload increases with additional non-core functions and the quality of your core activities suffers as your business grows. Outsourcing in such scenario to a third party plays an important role by allowing your key resources to focus on primary business tasks.
The most obvious and visible benefit relates to the cost savings that outsourcing brings about. You can get your job done at a lower cost and at better quality as well. Due to the difference in wages between western countries and Asia, the same kind of work that is done over there can be done in India at a fraction of the cost. There is a cost savings of around 60% by outsourcing your work to India. Plus, the quality of the services provided is high thereby ensuring that low-cost does not mean low-quality.
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Source: https://codecoda.com/en