5 Undeniable Reasons Why Businesses Should Start Outsourcing

Now more than ever, a lot of business owners are struggling to achieve their business goals and will take on the burdens and more responsibilities themselves. Finding help while maintaining process optimization and profitability is a complicated process with detailed steps – which is why many are considering or have already switched to outsourcing.

Outsourcing is the most sensible solution to numerous business problems. Whatever these problems or objectives may be, below are some of the most common reasons why companies are turning to outsourcing, and in particular, outsourcing offshore. 

1. Cutting Down Cost

Cost saving is the biggest reason companies outsource! With the market getting more and more competitive and saturated in this digital era, businesses are looking for ways to cut down operating costs while also maintaining their business values.

With the option of outsourcing, business owners now have multiple regions across the globe that provide highly skilled talent but at a fraction of the cost! This combined with the convenience of digital access, it’s not hard to understand why outsourcing is shaping up to be a key part of most business strategies moving forward.

2. New Venture with Minimal Cost Risks

Outsourcing enables businesses to experiment and expand, building on newer strategies without any of the high-risk costs associated with in-house programs. Areas such as sales, service, or even a new product release can now be facilitated without the rising costs of resources or infrastructure.

3. Maximizing Your Time

Money is not the only resource that is freed up when business owners turn to outsourcing. With a lot of the duties and responsibilities shifted elsewhere, there is more time on your plate that can be invested in focusing on aspects of your business that were being neglected before!

When non-core functions of the business such as payroll, finance, and accounting, lead generation, customer experience, back office, etc. are being managed by someone else working for your business through outsourcing, the business’ key resources are maximized. This time can efficiently be used to focus on building and developing partnerships and increasing sales.

Even outsourcing the smaller tasks of a certain business can save you an exponential amount of time – for instance, things like social media management, content creation, email marketing, and invoicing. The process is fast, simple, and cost-effective!

4. Tap into a Global Pool of Experts

Businesses are now choosing to outsource offshore, because they recognize the advantage of low labor costs, without it affecting their own business’ progress and value. Most third-world countries like the Philippines, India, and Pakistan provide an enormous human and knowledge capital. Did you know that Pakistan is the 3rd largest provider of digital labor in the world?

Currently, over 600,000 IT professionals are available to provide outstanding IT service in the country, turning it into a global outsourcing powerhouse! From software development to nanotechnology and cybersecurity to cloud computing, Pakistan has a stronghold on high-end technological frameworks that are recognized worldwide.

Outsourcing truly has opened up a greater talent pool of educated and experienced staff who is not only readily available within short time frames, but provide the best at a fraction of the cost!

5. Drive Efficiency and Higher Performance

Outsource service providers are experts in quality and delivery. The right outsourcing partner will help businesses map out their processes and analyze the sort of outsource model that would suit them best; ensuring that the customer is at the center of all the processes involved!

So to Summarize:

The reason companies and businesses outsource aren’t for a single reason, but rather several. It all depends on the company’s context and actual priorities and needs. Some of the most common motives, however, are usually the following ones:

• Reduction in Operation Costs
• Improving the Business’s Focus
• Delegating Tasks
• Sharing Risks with a Partner
• Liberating Inner Sources for New Strategies
• Increasing Efficiency
• Enhancing Service Quality

What Companies Outsource?

Now that we’ve discussed why outsourcing, especially offshore, is the best and most effective strategy for businesses long term, here are some businesses that have benefited from this practice. So you don’t take our word for it, but you can take theirs!

Huge franchises like Alibaba, Skype, Slack and even WhatsApp all profited from outsourcing their non-core functions. This not only enabled them to be more effective but they also grew faster and saved more money.

Outsourcing recently became popular in the 90s, when cost-saving became a cornerstone in several companies and some of the most common outsourcing firms offer financial services, pharmaceuticals manufacturing, retail, IT, software testing, and web development services.

Even Google!

What’s now a common household name, started out as a simple search engine but has since then evolved and become a massive organization. From offering hardware and software services to advertising, Google has employees distributed all around the world! It is a company with exceptional business practices and policies and it is one of the major companies that outsource and in fact, has been outsourcing their non-core functions, like admin and IT work, for years.

Google also understands that with its enormous size, it cannot do it all. To that end, they have been outsourcing development work and even email support; also offering phone support with a staff that is stationed all around the world! The more Google expands, the bigger the need is to outsource! Their outsource team of individuals seamlessly blends into their in-house support team, and are responsible for providing clients with an improved response time – all at a reasonable cost!

All these combined together make Google a perfect example to illustrate the reasons for outsourcing!

When thinking about other companies that outsource, WhatsApp is another good example of outsourcing, as it has been doing it from the very beginning! In 2012, WhatsApp was only a small organization with only 30 full-time employees and five part-timers. The company understood that if they wanted to grow, it was essential to keep the costs down and for them, Russia was the answer! They sourced development resources from Russia for only a small fraction of what they would have had to pay in the United States. It is now being used globally by millions!