Outsourcing Definition and Everything You Need to Know About It

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Does your business experience project overflow? Do you think your company needs to boost its manpower? Then, your business is surely growing. A growing business like yours has tons of options when it comes to handling this kind of situation. Some companies hire more staff, and some extend employees’ workhours.

Still, this might not be the best move for firms, especially during COVID-19 pandemic. Hence, there’s one solution that could aid expanding businesses. It’s called outsourcing.

What is it? How does it work? Is it beneficial to your business? What services can you outsource? Where can you find an outsourcing partner? Read on and learn this business solution before investing in one.

What is the Definition of Outsourcing?

First recognized in 1989, outsourcing is a strategy wherein a business hires a party outside the company to provide services or goods. This aims to help said business complete the job tasks which were originally done by their own staff. In addition, this is referred to as business process outsourcing, more known as BPO. And when these firms hire a third party outside their own country, it’s called offshore outsourcing. According to industry experts, this industry is projected to reach a $405.6 billion market size by the year 2027. This means that more and more companies would opt to hire external providers to help their business achieve their targets.

Sure, the global pandemic has affected the world economy, and along with it the outsourcing industry. Yet, the Grand View Research revealed in 2019 how global BPO industry could reach up to $343.19 billion by 2025. This only means that the demand for outsourcing is increasing—globally.

Now, let’s zoom in on the Philippine outsourcing industry. The future of BPO jobs in this country is bright, even if threats arise. Foreign investors still clearly see the potential of these services. They say the Philippines is the next BPO destination even during an outbreak. Furthermore, this industry has shown tremendous resilience amidst the worldwide pandemic. Many think that BPO firms are call centers. This is partly true; in fact, there are BPO companies that solely provide call center services. Having that said; there’s a wide range of outsourcing services available too, some of which we will tackle in this blog.

outsourcing definition involves hiring outside entities to do your work on your behalf

Why Do Businesses Need Outsourcing?

Outsourcing is not exclusive to gigantic firms or Fortune 500 companies. In fact, start-up and medium-sized companies are now taking advantage of this business solution. Why? Piling tasks choose no one. As mentioned earlier, one solution for this is to hire staff, train them for their tasks, and get the job done. And aside from core business functions, firms also need to put effort into their admin and logistic tasks. In return, these piling tasks demand firms to hire more employees.

However, this option is not a practical choice for many small businesses. So, instead of training more internal staff to take on job functions outside their core business processes, firms hire outsourcing services. While this business scheme started decades ago, the rise of technology has allowed outsourcing to become more popular than ever.

Examples of Outsourcing Services

Apart from what some business owners know, there are various outsourcing services one can hire. Here are some of the in-demand services we at Outsource-Philippines also offer.

1. Virtual Assistant

From admin tasks and lead generation to appointment setting and online research and analysis, virtual assistant service can help you deliver your overflowing tasks effectively.

2. Data Entry Clerk

Do you need help with your data entry, cleaning, and mining? How about database management and scanning and OCR? Outsourcing companies can also provide these kinds of services to you.

3. Content Writer

It is vital to create copies that convert. BPO firms also provide website, SEO, and social media services; along with content writing for articles, blogs, brochures, and newsletters. They can craft high-quality presentations, talks, and even job application tools such as resumes, CVs, and cover letters.

4. Graphic Design

Designs can grab your market’s attention. Well, not only that—they can convert sales, too. Consider hiring a partner company to provide you with a logo, business card, postcard, brochure, and even PowerPoint theme design services.

5. SEO Specialist

Let your site be seen and rank in the search engine results by availing this service. Build an optimized website, increase traffic, and improve your presence with the help of an outsourced SEO specialist.

6. Social Media Marketer

Your social media presence can lead you to success. Enticing campaigns, and targeted strategies with in-depth market research can take you to places. Invest in a professional social media marketer through the help of an outsourcing company.

7. PPC Specialist

Convert, convert, convert. PPC specialists from outsourcing firms are trained to increase your business’ return on investment. Their advertising tactics aim to get the most out of your campaign budget.

8. Bookkeeper

Yes, bookkeeping services can be outsourced, too. These pros are trained to deliver error-free data, the fastest time possible. Since data are an important factor in business management, partnering with a bookkeeper can help you manage and your confidential data.

9. Customer Services Representatives

What separates one business from another? A great, reliable, and helpful CSR. Since customers are the backbone of a business, outsourcing CSRs can help bring the best experience to their customers.

Perks of Outsourcing Services

outsourcing services, when done right, can result to successful business for you

1. Focus on core processes

Over 57% of businesses outsource to focus their workforce on core functions. So, free your load and let your team focus on your core business functions with the help of outsourced staff. To address the increasing loads of work, many startup firms delegate internal staff to perform at least two different functions. However, if handled poorly, this scheme might affect their overall performance and might leave even greater damage.

2. Improve Efficiency

Start projects right away with the help of outsourcing firms. Choose a team that specializes in the service that you need to ensure the quality of their outputs. This way, you don’t have to spend more time and money to achieve your business goals. Besides, you don’t want to double-check every task you require them, right? So, partner with a firm that can deliver quality results on time.

3. Gain Access to Skilled Staff

No need to worry about the whole hiring process, since outsourcing companies have already done the tedious task for you. Each outsourcing firm has its own meticulous hiring process to provide the most qualified staff for your business needs. They also conduct regular training to arm their talent pool with the latest knowledge regarding their field of expertise.

4. Save Labor Costs

Hiring additional internal staff entails more operational costs. Aside from spending on staff hiring and training, you also need to set up a conducive workplace for them. This includes fast internet speed and their own work equipment. Apart from that, they also have the right to enjoy employee benefits such as healthcare coverage, vacation and sick leaves, and are subject to salary increase.

5. Provide 24/7 Services

Need to make your service line open round-the-clock? It’s best for you to hire offshore outsourcing services. Hire service firms from a different time zone to help you get the job done even if you’re done for the day. This tip doesn’t only save you labor costs; it also gives you more time to enjoy your day off.

Downsides of Outsourcing

Every pro comes with a con. One key issue with outsourcing is that firms run the risk of their confidential data exposed. Just like in bookkeeping services, the client needs to disclose important numbers and figures that are private. Moreover, providing info from the payroll and recruitment involves great risk for the company, too.

Another great risk is seeing eye to eye when it comes to client requirements and deliverables. Choosing the wrong outsourcing partner can even bring great loss to your business. Unreliable BPO firms can either miss the deadline, or deliver outputs that are of sub-standard quality.

Lastly, since you need to sign a contract with your chosen partner, there’s a high chance of a lack of flexibility issues. What does it mean? The contract could be too rigid to accommodate changes for the task. So, it’s best to look ahead and consider these things before signing a document.

Finding the Best Outsourcing Solutions in the Philippines

It’s high time to search for a good outsource service provider. However, this might take a while since there are lots of options now.

Here are some tips for you to consider before outsourcing your services:

  • Build a healthy relationship with the BPO company.
  • Set clear, achievable goals and objectives.
  • Strengthen data security compliance.
  • Solve management conflicts as soon as you can.
  • Connect with you partner company on a regular basis.

Expanding your company might involve growing your services and boosting your manpower. Hiring additional staff or extending work hours might not be the best move for you right now. But don’t let COVID-19 shut your plans! We’re here to introduce you to a business solution that can surely help your business grow.

We’re one of the pioneers in this field. We take our processes with great importance. From hiring to training, we ensure that our staff strictly adhere to our standards. Our pool of skilled staff has also lent their hand for startup and established firms to achieve their targets faster through our premier business solutions. Check our outsourcing services to know more or talk to us now!