Needless to say, it's always a good thing to have a fast-growing business. Your hard work is finally paying off and now it's time to expand to meet increasing demands. However, dealing with the growth can also easily get out of control. It’s important to have a growth plan in place and prepare in advance for the challenges ahead.
The first step that you could take is to be aware of the common mistakes that fast-growing businesses make and know how to avoid them through outsourcing. Recognizing what could go wrong makes planning easier.
Problem #1: Limiting Expenses by Keeping Everything In-house
When you are a growing business, you want to keep track of your company’s expenses and make sure that the money that goes out to third-party service providers are kept at a minimum. Because of this, businesses tend to hesitate to outsource some of their processes and choose to do everything by themselves. In reality, this is a lot more expensive and counterproductive.
How Outsourcing can Help: Do More with Less
Fast-growing businesses have limited financial resources which could put a strain on the growth potential of your business. Outsourcing enables you to increase capacity without having to invest in office space and infrastructure. It turns the usual capex items into opex, enabling your growth to be self-funding.
Problem #2: Multitasking
Fast-growing businesses have a lot on their plates, so it is inevitable for them to handle more than one task at once. Contrary to the intention of shooting two birds with one stone, multitasking actually hurts your productivity. Instead of giving your 100% to core operations, your attention is divided and therefore wasting 25-50% of your time on something you could have delegated.
How Outsourcing can Help: Focus on the Core Business
The owners and top management of fast-growing businesses need to focus on their core product or service offering and expanding their market share. Outsourcing can help top management stay focused by taking care of the infrastructure and overhead needs of your growing business. In the case of MicroSourcing, we enable our clients to focus on their core business by taking care of their office space and IT infrastructure requirements and by providing all the overhead and business support services they need to have a smoothly operating overseas operation.
Problem #3: Skills Mismatch
With limited financial and human resources available, local businesses tend to settle for what they can access and afford. Don’t settle for less; outsourcing opens up a wide range of flexible, specialized solutions that won’t break the bank.
How Outsourcing can Help: Access to Qualified Personnel
It can be difficult for a small but fast-growing business to attract the best talent in the marketplace. This could be due to the limited availability of talent in their own location or because the company is too small to attract the best people. Outsourcing companies can help by opening up a much larger talent pool to your business. In offshore locations, salaries will furthermore be much lower.
Going through the growing pains of a fast-growing business will be easier with an outsourcing partner. Contact us to learn how the managed operations model of outsourcing benefits businesses of all sizes.
by: Sidney Liquigan
Tuesday, August 21, 2018 | Comments (0)
Category: Outsourcing Research / Trends
Technology plays a big role in business operations. As it evolves, businesses also strive to evolve and adopt new technologies to stay relevant and competitive. Besides, technology is always advancing to improve everyday processes, so it's definitely a smart move for businesses to take advantage of these innovations.
But not all companies have or can afford a robust in-house IT department. An efficient and cost-effective way to have the support you need is to outsource IT. There are also many other great benefits that you can get from investing in IT outsourcing.
Lower IT Costs
The fixed IT costs of installing an IT infrastructure are a huge investment that can be at risk of going to waste if ever you decide to restructure. Having your own IT infrastructure is very expensive, plus the maintenance costs. And subsequently, you would need to hire IT specialists and pay for their overhead. IT outsourcing offers flexible options at varying costs, which you can customize according to your needs and budget. This service is also easily scalable, with no loss on your end, whenever you decide to either upgrade or scale down.
Seamless Technical Support
Outsourcing to professional IT service providers ensures that you receive comprehensive and secure hardware and software management solutions. They have all the resources and experienced specialists to provide you with an uninterrupted flow of service. Most IT service providers operate 24/7, enabling them to support your business around the clock.
Peace of Mind
Delegating the work to IT professionals gives you a peace of mind that complex tasks and issues are handled competently by qualified experts. Moreover, most IT outsourcing providers can work within mutually agreed service level agreements.
Most businesses find it difficult to comply with industry and other governing standards and put comprehensive quality control procedures in place. Outsourcing to specialized providers will ensure adherence to international standards for data security and quality control.
You can choose from different IT outsourcing models depending on what fits best with your company's processes and needs. A traditional IT outsourcing model is where you outsource all or large portions of your IT operations to a third-party provider. In this model, the external provider has full control of the functions and entails multi-year commitments. There is also the partial outsourcing where you can outsource individual IT processes. Compared to complete outsourcing, partial outsourcing is easier to roll back or assign different areas to different specialized providers. And then there's the managed operations model. This approach combines incorporating and outsourcing in a way that you get to outsource your IT operations but retain full control. MicroSourcing's managed operations model gives more direct control to the client company and keeps costs at an absolute minimum.
Aside from the employees, your company's data is your most important asset. It should be handled with care by well-equipped IT management providers. Take advantage of readily available resources by outsourcing your IT to offshore managed operations providers. Contact us to learn more.
by: Sidney Liquigan
Thursday, August 9, 2018 | Comments (0)
Category: Outsourcing Research / Trends
The Philippines has a fast-growing call center industry, which has shown consistent rapid growth since its start back in the 1990s. The demand is driven by foreign businesses choosing to outsource their customer support to the Philippines and by the continuous entry of foreign investors setting up call center companies in the Philippines.
According to the Information Technology and Business Process Association of the Philippines (IBPAP) the BPO industry generated $23 billion in revenues and employed around 1.5 million Filipinos in 2016. With voice-based services, or the call centers, as the main stars of the BPO industry, foreign investors from all over the world consider the Philippines as the top destination to establish their call center operations.
Offshore outsourcing generally provides great advantages to businesses. But why are foreign investors specifically attracted to the Philippine call center industry? Aside from the Filipinos' high proficiency in English and their strong affiliation to Western culture, here are the other five main reasons.
When you are offshoring your business operations, finding a strategic location is an important part of the process. The Philippines is an ideal location for investors to set up their operations because the country’s geographic position in the heart of Asia makes it easily accessible and serves as a point of entry to other locations on the continent.
Amidst the reported challenges of automation and artificial intelligence, outlooks towards the call center industry in the Philippines remain positive. A report by Dezan Shira & Associates saw the growth of the Philippine BPO industry to reach $40-55 billion in total income by 2020. By that year, the firm also projected that the industry would provide around 1.3-1.5 million jobs. The Philippines has overtaken India as the leading call center destination, with the call center industry expected to continue to be the largest contributor to the economic growth of the country.
Lower Operating Costs
Real estate developers continuously develop new BPO-specific office spaces all over the Philippines, keeping office rental rates reasonable and availability high. Operating costs in the Philippines are generally lower due to lower labor costs and lower rental and overhead costs. Setting up a managed operations business outside Metro Manila is just as attractive to investors – they get to spend much less and have the advantage of an equally highly-skilled workforce.
As a rapidly expanding industry, the Philippine government is also providing an increasing support to the call center industry to further invite investors. Existing government programs include tax holidays, tax exemptions, and simplified import and export procedures. Moreover, Senator Bam Aquino is also pushing for the retraining of call center employees and upgrading their skills to counter the threat of AI to over 1.4 million BPO jobs in the Philippines. Universities and training centers are also offering courses on customer service training and other programs for would-be BPO workers.
Offshoring opens various options and opportunities to investors and company owners that will best fit their requirements. In the Philippines, there is a middle ground between outsourcing and incorporating. MicroSourcing's managed operations model provides the best of both worlds. Through the managed operations model, foreign clients have a Philippine partner that will help establish, host, and manage their call center operations here. They get to enjoy the perks of outsourcing and at the same time, have full command over the level of control they want to take or turn over.
Contact us to learn more about the managed operations model and how we can help you set up your call center operations in the Philippines.