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Successful Offshoring to The Philippines

Why Outsourcing is Good for the Business

by Offshoring Expert | Outsourcing
Outsourcing your business unit can help increase the performance of your core processes.

We are living in a very interdependent world. The world trade has reached great heights and businesses are taking full advantage of that. It is true that this interdependency has caused a lot of financial complexities but it has also shown great results for businesses. 

Outsourcing has a lot of positive effects on business. It’s not just about the cost but also the productivity it contributes to an establishment.

Benefits of Outsourcing in a Business

  • Cost Efficient

One of the things to guarantee the business’ continuous operations is to build a sustainable activity that will cover the cost of the company’s operating expenses. For businesses whose goals are to increase profit and decrease labour costs, outsourcing is a great solution to achieve that goal. Outsourcing is known to offer lower labour costs and businesses taking advantage can reap benefits as they lower expenses for the workforce and maybe allocate it towards other profit-generating activities.

  • Improves Productivity

Outsourcing your business unit can help increase the performance of your core processes. It encourages employees to be more productive especially if there is a healthy competition between teams producing the same outcome. This will push employees to work harder and improve the quality and quantity of their output. 

Another way to improve productivity is to transfer repetitive and clerical tasks of your salespeople to your outsource team, providing time and room for your sales professional to perform more profit-making activities.

Team Delegation
  • Delegation

Your outsource team can be built up in several ways. One of the ways to start your team is by starting with the help of third-party providers. There are companies that offer seat-leasing positions to help you build your own start-up outsourcing business in countries like the Philippines. Such companies minimise your risk and allow you to focus on creating processes that will further improve the company’s financial stability and reputation.

  • Round the Clock Operations

One of the best things about outsourcing your business is that you get to run your business 24/7, if necessary. Say your base company is located in Brisbane, Australia and you have multiple outsourcing companies located in different cities in the Philippines handling clerical work and customer service support roles, it is possible that you can run your customer service role 24/7. How? Since there are countries where manual labour is cheaper, you’ll be able to afford 2 or more employees for the price of 1 local employee and have them work on rotational shifts.

  • Tax Benefits

Different countries have different business laws. The way you do business in your own country might not be acceptable in another. Before outsourcing, learn and understand the business laws of that specific country. 

Many businesses tend to start their outsource units because of the advantageous tax laws applied to the business of that specific country. You may have to pay 30% tax in your country while the tax rate implemented on your outsourcing business unit might be 5%. Outsourcing helps you enjoy such privileges that benefit different aspects of your company.

Diverse Employees
  • Diverse Human Capital

Another reason that outsourcing is good for your business is that it offers diverse human resources. Research has shown that the nature of the business does not play a significant role in the success of the business, a diverse workforce does. Having staff with different perspectives and levels of knowledge regarding various areas of the business helps the company increase its productivity. In addition to that, it helps the business create a more diversified culture that can help their employees build stronger professional relationships. 

These factors show that outsourcing is not just good but absolutely great for your business. Outsourcing can help your business reach new heights of success which will eventually yield you higher profits. Just close your eyes and think about how outsourcing will benefit you. 

There will be many professionals that will talk about how outsourcing will only be a disadvantage to your company, and that’s perfectly normal. The goal is to guarantee that your business is ready for its outsourcing venture and you have the time and resources to guarantee that you will make it work. 

Outsourcing is a venture; many people forget that. It needs to be nourished and taken care of until the day that it can run on its own. Keep in mind that the many outsourcing successes that continue to dominate the internet are achieved by owners who worked hard to improve their processes.