BPO or business process outsourcing is a business strategy that has been adopted by large and small business alike. Usually this is done when a company contracts some of its business activities to another company to save valuable resources. Over the course of many years companies invest significant resources in various business areas to gain a competitive advantages and in many cases they struggle to find the right talent to scale the business. Offshoring offers a faster pathway with more control and more specialization at your fingertips, with reduced strain on internal resources giving business a distinct competitive advantage in their market niche.
In any business industry, there are three vital areas of business processes that can be effectively offshored. They are divided into:
A. Critical but Non-Core Business Processes
These are defined as important business processes that are not a part of the companies core business that are often outsourced by a company or business owner. This segment is best left to the discretion of the business owner as to which aspect they need outsourced.
B. Core Business Processes
These are business processes that are of huge importance to a business and they are competitively significant.
C. Non-Critical/Non-Core Business Processes
These are tasks and roles which can be performed poorly without any impact on the company. For an ordinary company, these include cleaning, catering and security.
Why Should You Outsource?
Imagine organizing a company event, a huge undertaking at the best of times with countless, overwhelming tasks at hand. And no respite from your already full workload. The clock is ticking, and with limited resources and your bandwidth already full it is almost impossible to finish everything on your own. Offloading some of the tasks to another team will free up your bandwidth and by spreading out the load you are carrying it will ensure that all of the tasks are completed and the event goes off without a hitch . The same concept applies when you offload a portion of your company’s service or support work to your offshore team. Everyone’s load becomes lighter because it’s shared by more people. The old adage “Many hands make light work” comes to life when you consider offshoring as a solution, with increased bandwidth, comes increased productivity, which in turn becomes increased output, and increased time for your core staff to focus on your company’s core business, which then turns into increased revenue.
Who Doesn’t Want Savings?
One of the primary factors that first attracted multinational companies to outsource work is savings. Businesses which offshore on average report savings of 60% percent in staffing and associated operational costs. In some cases with more specialized roles, these savings are even higher. Some of the major outsourcing hubs include the Philippines, Thailand, Indonesia, India, and Pakistan. For a relatively low cost, businesses are able to leverage these large talent pools to give a healthy boost to their bottom end. Offshoring allows businesses access to highly talented, Highly educated & qualified staff with quality results, increasing productivity, and keeping companies profitable. It also does away with the tedious and expensive in-house recruitment processes.
Apart from costs, the advantages of offshoring include:
- Direct access to a huge pool of knowledgeable and skilled talent. The Philippines is a leading outsourcing destination that offers a huge pool of skilled and competent talent. The labor costs rates are much significantly lower when compared to local counterparts in more developed nations, when you do a like-for-like comparison with the same skill set and degree. Filipino workers are also known for their excellent written and verbal English speakers, have excellent customer service skills and, cognitive problem-solving abilities.
- 24 hours a day access. For a global business, it is important that company has access to support 24 hours a day, seven days a week. This is necessary to support operations all across the world.
- Full attention to core business tasks. As you offload non-core business processes to a competent offshore staff, your domestic team will have increased bandwidth to fully focus on tasks that have a direct impact on the growth and expansion of your customer base. With more time to explore more opportunities, lower strain on domestic resources and the ability to scale as required a company can attain sustainable (and rapid) expansion.
If you’re considering outsourcing your Recruitment, Accounting, IT Tech Support, and other Back of house work abroad, make Staff Domain your first choice. The company is based in Manila, Philippines and offers bespoke business solutions to a wide range of industries. Book a FREE consultation today!