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Pros and Cons of Outsourcing Non-core Tasks to Your Business

Without a doubt, outsourcing offers an effective scheme to companies today, more so for the ones trying to improve their service while hoping to spend less on labor costs. However, despite being a popular choice a few doubt its efficiency, thus triggering debates. Yet, what’s useful to one may not be helpful to another. Below are the pros and cons of outsourcing non-core business processes.

The Pros and Cons of Outsourcing 

Advantages of Outsourcing 

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Below are a few of the reasons you should source your tasks to an onshore or offshore service firm.

1. Low-Cost Service 

Cost is one of the main reasons and maybe the most influential factor why firms farm out their non-core tasks to outsourcing companies and pros. With this business practice easing costs, firms will save much money.

Here are some non-core tasks and functions that are more expensive when done in-house:

  • Back-office operations
  • Management and administration
  • Human resources

This scheme also cuts operating and overhead costs, leading to more profit and savings but with few considerations. 

2. Focus on Core Tasks 

In outsourcing, you can focus more on your main functions and keep an eye on the work efficiency and output. With a third-party firm or pro doing tasks you don’t know, you’ll have the chance to concentrate on and do well in your abilities.

3. No New Hires 

If you can’t do a certain task, hiring an extra in-house worker might not be a wise choice because you must give them training and resources. On the other hand, when you outsource it, your hired staff will serve as your remote worker, helping you save time, money, and effort on onboarding.

4. Access to a Pool of Field Experts 

If you outsource to an outside party, you’ll gain access to a greater level of “global skills,” something your big rivals enjoy. With a pro handling your project, the staff can work right away (with no worry for training, tools, and resources), and you’ll get quality outputs.

5. Economy Booster 

Outsourcing adds to the economic growth of a country. In fact, it opens opportunities for many job seekers, freelance workers, and even full-time employees. In the same way, it allows access to specialized skills and modern technology needed by firms.

Disadvantages of Outsourcing 

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However, just like any other business strategy, outsourcing has its drawbacks, too.

1. Lessened / Loss of Control or Authority 

The biggest worry you can have when you farm out your business tasks is losing full control of outsourced functions. Likewise, this means you’re placing a part of your business on someone else’s accountability.

2. Low-Quality Service 

An outsourcing firm can’t be sure to give you a perfect output or meet your expectations. In such a case, the business’ reputation may suffer, resulting in a loss of clients, sales, and profit.

3. Loss of Job Opportunities in Home Countries 

Since outsourcing involves sending work overseas, it can mean loss of jobs in the client’s home country. In turn, this fuels, if not worsens, the growth in unemployment.

4. Risk Exposure 

Security issues are threats that outsourcing can bring to either or both contracting parties. In fact, confidential details, sensitive data, and intellectual property may threaten the deal because unforeseen factors can expose them to risk.

5. Communication Problems 

Other problems you may have when you outsource to a third-party service firm are mismatched time zone, language barrier, and cultural differences. These small yet crucial factors often affect the practice because poor communication results in poor quality of output.

Services You Can Outsource and Why Do It 

To give you an idea of the business services you can outsource and why you should do it, check out the list below.

Virtual Assistance

Are you loaded with overwhelming yet repetitive tasks? On days like this, a virtual assistant (VA) can be your most reliable companion. From email management and customer support to live chat and administrative tasks, you don’t need to worry because a VA can take these loads off your shoulder.

Graphic Design

Experts tagged visual branding as one of the biggest outsourcing trends of 2017. They also expected it to keep its pace in the coming years as people yearn for more visual contents. If you think your brand just needs a little facelift, an outsourced graphic designer will be better than hiring and maintaining a full-time employee.

Content Creation

Business management and content writing can take tons of your time. But since you need to do both, outsourcing skilled writers can keep your content updated while you focus on growing and managing your business. You can count on them from articles and blogs to web pages and proposals. They can also help keep grammar lapses and trolls at bay.

Web Design and Development

If web design and programming make your head hurts, worry no more about building or managing your website. Whether it’s web design, management, or web development, you can always find outsourcing services that will meet your various needs.

Digital Marketing

As technology progresses and the needs of people escalate, amplifying your online presence becomes crucial. While hiring in-house digital marketers can be beneficial, they can also be expensive and hard to find for startup and small businesses. So, if you want expert services without the extra fees, outsourcing them can be the best option.

While you can find these most outsourced services online, getting services from long-running firms, like Outsource-Philippines, lessens the risks that come with outsourcing.

Learning the pros and cons of outsourcing is vital to those who have just started their business. This system can be valuable but likewise risky, too. As mentioned above, views on outsourcing vary from one person to another. In a greater sense, too, its effects vary, depending on the client’s field itself and the purpose of hiring an outsourcing service.

You must assess the possible results. With a click, you can turn to web-based resources to get more knowledge on the pros and cons of outsourcing. Want to outsource your tasks? Work with Outsource-Philippines, a firm that offers outsourcing services.

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Outsourcing Examples of What Companies Usually Outsource

Amidst these trying times, outsourcing is still the rage right now. It might not appear to be the best time, but it is still wise to outsource work to save money and time on projects that will boost your business. Still can’t fully grasp the scope of this trend? Check out these simple outsourcing examples so you can start to consider things you may want to have performed outside your company.

5 Real-World Outsourcing Examples

These days, you can outsource just about anything. From customer support, IT, manufacturing to human resources, you can almost outsource any task now.

But should you also ride the wave of offshoring, or should you stick to doing your projects in-house? The answer mainly depends on your needs at the time. Consider it as a good business strategy and a tool to use when you need it. Check out these real-world outsourcing examples to help you explore your options.

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1. IT Outsourcing

Whether for a new app, IT system maintenance, or any tech-related task, business owners are now outsourcing these IT needs to outside firms. Why? Well, for some, it’s a cheap way to ensure their servers keep running and emails keep being delivered without the headache of managing—and paying for—an entire department.

2. Project-Based Outsourcing

As you run and grow your business, you’ll run into projects that come in all shapes and sizes. For instance, you might want to launch an ad campaign, but don’t have an in-house creative staff to get it off the ground. Rather than starting an entire team for seldom projects like this, outsourcing it would be much wiser. You can save time and money and leave the daunting tasks to the hands of real experts.

3. Manufacturing Outsourcing

This one is maybe the most common and widely used form of outsourcing. Car, clothing, and electronics firms often farm out the production of their products because it is usually cheaper to make things overseas. Since not all companies can always upgrade their process and equipment, outsourcing the task can help them deliver their products and compete in the market.

4. Professional-Level Outsourcing

This form of outsourcing greatly reduces overhead costs, since it lets companies gain access to high-quality resources while paying only for the services used. Though IT also falls under this section, other services to outsource include sales, HR, accounting, payroll, and legal counseling.

5. Process-Specific Outsourcing

This type refers to the outsourcing of a specific process or procedure. It is now becoming a great choice for firms because it allows them to focus on the core areas of the service. The most popular examples are small food businesses outsourcing delivery service from courier firms.

Examples of Companies that Outsourced Services to Grow

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1. Alibaba

Alibaba.com started as a small internet company and has grown into one of the world’s largest internet global e-commerce sites known to many as “China’s eBay.” But before they grew like that, founder Jack Ma says he outsourced many of their projects. As he outsourced development to web developers in the US, only then did he see his business take off.

2. WhatsApp

In 2012, WhatsApp started with only 30 full-time and 5 part-time workers. It has grown to be one of the most popular chat apps before Facebook bought it two years later. However, they didn’t experience this growth relying only on their 35-person team. They outsourced developers in Russia to keep their operating costs down. And as the business grew, WhatsApp hired and relocated these offshore pros to the US.

3. Basecamp

Before they became one of the most popular project management tools, Basecamp was just a 4-man team. As they started to grow, founder Jason Fried admitted that while they were delivering a good product for the money, their internal processes were a mess. To move the app development forward and free up time for their team at home to focus, they started outsourcing work to remote developers. This helped them improve their product, organize the team, focus on business priorities, and make necessary changes.

4. Google

Contrary to what others think, Google has been hiring remote staff for years now. They outsource virtual assistants, IT pros, developers, and more. They even outsource email support for AdWords and there is no discrimination on who they hire. Google works hard to take care of all its in-house and remote workers and provide them the perks they deserve.

5. TransferWise

TransferWise is one of the most successful global money transfer services that use remote staff for business growth. They are known for hiring Ukrainian and Estonian developers and product engineers, not because of cost savings, but due to their talent. They hire the right people, regardless of where they live, and then empower them to do the best job.

6. Skype

Skype has revolutionized the way companies do business. It has made communicating with remote workers easier for firms around the globe. But before all this, Skype also outsourced the back-end development of the app to three Estonian developers. While they initially outsourced the development, Skype also brought them in as partners the same way WhatsApp did.

7. Slack

Slack is an online collaboration tool launched in 2013 by four talented people. But before officially launching the product, they relied on beta testing from an outsourced design firm. By doing this, Slack was able to get important feedback that helped them create, not just the tool, but a personality. This helped them launch a product that has outdone the market several times.

In a Nutshell

When it comes to growing your business, outsourcing examples abound because you can rely on expert teams to get the tasks done without the need to hire in-house staff. It is cheaper, yields productivity, keeps office costs down, and gives you access to a global market of talent and expertise.

Ready to dive into the world of outsourcing? Outsource-Philippines offers a wide range of outsourcing services that you can hire depending on your business needs. Leave a message or call us for any inquiries or to request a quote. Our toll-free phone numbers are listed at the end of this page.

Sources: Time Doctor | Careerminds | Quora

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Answering “What Is BPO?” and Other Frequently Asked Questions

Business process outsourcing (BPO) has been around for over 20 years. Yet, many professionals and business owners are still not familiar enough about this thriving industry. To help you understand what is BPO, we have compiled and answered the most frequently asked questions.

What is BPO?

BPO involves contracting third-party vendors to provide specific business functions. Although at first BPO solely applied to manufacturing entities, it now applies to the outsourcing of services as well.

Who do you outsource to?

Usually, companies and firms outsource to third-party firms in foreign countries with lower labor rates to save costs. But now you can outsource as an individual or professional either to firms in your own country, or to independent freelancers as opposed to companies.

What are the main types of BPO services?

There are two main types of BPO services: the back office and the front office. Back office services include jobs with no customer interaction such as billing, maintaining records, and accounting.

Front office services, on the other hand, include customer-facing jobs like customer service, sales, and tech support.

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How do offshoring, nearshoring, and onshoring differ from each other?

The range of BPO options a business has depends on whether it contracts its operations within or outside the borders of its home country.

“Offshore outsourcing” or “offshoring” happens when a company partners with a BPO firm from another country where there are tax savings and lower labor costs. A US company using an offshore BPO vendor in the Philippines is an example of this setup.

“Nearshore outsourcing” or “nearshoring” happens when a company outsources a business function to a BPO firm from neighboring countries. Using the same scenario, a US company partnering with a BPO vendor based in Canada is considered nearshoring.

“Onshore outsourcing” or “onshoring” happens when a company hires a BPO vendor within its home country, even if they are in different cities or states.

What are the advantages of BPO?

  • Flexibility

Outsourcing non-core business functions allows your company to be far more flexible. Firstly, you don’t have to invest in fixed assets and can convert them to variable costs. It also increases your flexibility as far as managing your resources is concerned, and helps you adapt faster to industry changes.

  • Cost-Effective

Outsourcing some of your business processes can be very cost-effective. You can save from investing in fixed assets and fixed costs. You can also redirect these funds for your core business functions.

  • Speed

BPO firms significantly increase the speed of your business processes. They offer fast response time, thus giving you more time to focus on the core functions of your business. This division of tasks speeds up the whole process which proves vital in business functions such as customer service.

  • Skilled Manpower

Hiring a BPO firm also means outsourcing the expertise and exemplary services of its manpower. So, if you outsource your accounting tasks, rest assured that only expert CPAs and bookkeepers will handle your financial statements.

What are the disadvantages of BPO?

  • Communication Problems

Communication problems between your company and the outsourcing firm may happen due to various reasons which may include language barriers. Misunderstandings and missed messages can happen, too. Both of you may also follow a different set of standards that may cause a conflict of ideas.

  • Different Time Zones

Aside from the language issues, differing time zones can also be a downside in hiring a BPO firm. It is hard to communicate anytime you want. Emails may go back and forth, leaving all work pending until everything is sorted out. It is usually the outsourcing company that adjusts their shifts to match your office hours.

  • Loss of Control

Since you’re outsourcing tasks, you may lose control over the monitoring of how the outsourced staff performs the tasks in real time. But if you know and trust the BPO firm, this shouldn’t be a huge issue.

What are the services to outsource?

Common outsourcing tasks include human resource management, accounting, customer support and service, content writing, marketing, and web and graphic design.

Two female customer service agents showing what is BPO and its services

Who is Outsource-Philippines?

Outsource-Philippines is a BPO/KPO firm that offers virtual assistance, data entry, content writing, SEO, social media marketing, PPC, bookkeeping, customer service, and graphic design.

Still got questions on what is BPO? If there are questions that are not on this blog and for the full list of our outsourcing services, you can chat with us live or call +1 (805) 823-4145.

Philippines telemarketing lead generation office space

Outsourcing Philippines’ Telemarketing Lead Generation Services

In today’s fast-paced digital era, technology keeps on evolving. This has brought a lot of change in the world of business, mainly marketing. From influencer marketing to interactive contents, trends in acquiring potential customers have taken a great leap toward digital marketing. With all these changes, is Philippines telemarketing lead generation outsourcing still worth a try? Read on and know why we believe that it’s still one of the most effective ways to gather qualified leads.

7 Reasons to Give Philippines Telemarketing Lead Generation Services a Try

While you can generate leads using the latest trends, telemarketing is still best for qualifying leads that translate to increased sales. Cold calls and other outbound telemarketing campaigns are effective ways to reach a group of prospects and clients. They can convey a message, gather feedback, and determine your next step in real time.

So if you need an input in your next marketing strategy meaning, here are seven reasons why you should consider outsourcing services for telemarketing lead generation.

1. It provides a personal touch.

Compared to chatbots and AIs, most people still prefer talking to a human. Nothing beats a proficient telemarketer in listening and talking whether for customer service or product and service inquiries.

2. It’s almost real time.

Since it is a direct method, it also brings immediate response and direct Return of Investment (ROI) regardless of your goals and skill set.

3. It can gather crucial client and open market data.

Every single call is an open opportunity for you to learn. Depending on the data you need, you can easily gather the info you need to expand your knowledge and experience.

4. It can boost other campaigns.

When done right, it improves the efficiency of your other marketing efforts which include direct mail, SMS, and email marketing. Using telemarketing before these campaigns can help you weed out prospective clients from unrelated contacts. On the other hand, using it after can help you log feedback, capitalize on interest, and improve your response rates.

5. It is flexible.

You can use every valuable feedback you get from all your calls to make quick and effective changes on your plans. It can also help polish your tactics from time to time.

6. It works for both warm and cold lists.

Unlike other methods, you can use telemarketing for various purposes. You can obtain new clients, convert leads, close sales, or sell to existing clients.

7. It is measurable.

You can use the info you gather from the calls to measure the efficiency of your strategies. These include being able to determine how precise your contact info is, how efficient your sales team are, or how many people engage in your campaign efforts.

Philippines telemarketing lead generation services agent

How to Make It Work

1. Work hard on your audience.

If you want to start off on the right foot, just having a list won’t be enough. You also need to find the best source of fresh data and keep your database organized and up to date.

2. Prepare to make lots of calls.

Generating leads through telemarketing is more than just cold calling. Aside from having to deal with rejections, you also need to make at least 15 to 20 calls each hour to drive enough talks that convert to qualified leads.

3. Ask a lot of good questions.

A successful call lies on the questions that you throw. The good ones can urge your callee to speak to you and help you gather the info you need. It can also guide the talk toward their interests, thereby building rapport and trust.

Outsourcing the Best of the Philippines’ Telemarketing Lead Generation Services

Does everything sound tedious and overwhelming? Well, that’s the reason why we’re here! We provide the best of the Philippines’ telemarketing lead generation services. Unlike others with pre-recorded messages, we talk to your clients ourselves to provide a more personal approach. More than just presentations, our telemarketer services aim to build conversations that convert. Browse through our services and contact us to get a quote now!