Outsourcing can save your organization on time, resources and costs that can be better spent on fostering growth opportunities and ensuring business longevity.

How can outsourcing help you save on costs?

Reducing costs can help organizations improve cash flows, become more profitable and support business growth investments. So where can these cost savings come from?

One of the biggest costs in an organization is labor. Labor costs account for around 70% of total expenses and includes expenses in addition to employee salary such as benefits, payroll and other related taxes. Outsourcing has allowed many businesses to significantly lower these expenses without losing skills or impacting quality. The cost of outsourcing to hotspots such as the Philippines is much lower than wages in Western countries, making it possible to save up to 70% on employment costs for the same talent and quality of output.

Outsourcing can also help you save on real estate and infrastructure costs. Next cost: office space and infrastructure. The more employees an organization has, the more space and equipment it requires. Quality outsourcing providers have their own workspaces and can supply the necessary equipment to their client’s offshore staff.

The very act of recruiting new employees costs money. The average cost per hire of a single employee is around $23,860. Offshore providers are experts at cultivating and tapping into sizeable talent pools. Outsourcing providers can also scale hiring activity up and down quickly and efficiently to match the needs of their clients.

How can outsourcing help you save on time?

The average time to hire for a vacant position is 42 days, however, depending on the industry you operate in, it could vary from 14 days to two months. 

Recruitment involves the cooperation of multiple departments to effectively hire a candidate, not to mention the time required to onboard train new employees. What about the time taken to keep employees motivated and engaged? This timely cost can tap into your HR department to establish job advertisements, your senior management to approve salary packages and your accounting or finance department to set up and maintain employee records.


Outsourcing with the right provider can save you time by handling these tasks. This in turn, ‘gives back time’ to your team and your employees to focus on tasks that are more strategic or growth-focused. Outsourcing can also offer your business the opportunity to facilitate 24/7 operations.

How can outsourcing help you save on resources?

All organizations have a shared common goal: to foster a productive working environment.  An average of 41% of employees spend much of their time handling discretionary activities that offer little personal satisfaction. This directly eats into productivity when studies show that happier and more satisfied employees are 13% more productive than their counterparts.

Some studies say that the average employee is only productive for three hours a day, or an average of 12.5 hours per week. The biggest barriers to productivity were related to tasks such as managing emails (16%), administrative tasks (11%) and wasteful meetings (10%).

Outsourcing with the right outsourcing provider can save on resources by taking care of these repetitive and tedious tasks. It means your teams can focus their time on the tasks that matter to them, increasing staff productivity and positively impacting your bottom line.

The average monthly salary in the Philippines is hard to determine due to the lack of a national minimum wage. However, based on our experience in the industry, the average salary of a Filipino can be up to 70% less than Western counterparts.

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