Outsourcing: a viable solution for tech businesses

Outsourcing has helped many businesses globally to reduce costs, improve efficiencies and grow sustainably. Want to learn how outsourcing could help your business leverage these benefits?

In here you will find out everything you need to know about the benefits of outsourcing, examples of how organizations within your industry have used outsourcing successfully, why the Philippines is a top outsourcing location, why outsourcing is a viable business solution and commonly outsourced roles.

Outsourcing: a viable business solution

The global market size of outsourced services is expected to reach $512.4 Billion by 2030, with the leading driver for this growth being the 59% share of businesses that turn to outsourcing to reduce costs.

Businesses can use outsourcing to help navigate sudden increases in demand, market changes and to deliver on organizational goals. Outsourcing is a low-cost recruitment strategy that produces the same output level as hiring locally, allowing businesses to scale and grow as they see fit.

The Philippines outsourcing industry

With over 1.44 million people working within the outsourcing sector in the Philippines, it is no wonder businesses around the world are turning to the Philippines as the premium outsourcing location.

This growth can be attributed to the Philippines literacy rate ranking of ‘High’ according to the annual EF English Proficiency Index. Placing 2nd out of 24 Asian countries, English is a way of verbal and written instructions across the country’s educational systems and institutions.

Outsourcing is also heavily favored by the Philippine government. It is recognized as an avenue for economic growth and as a result the government supports outsourcing providers with additional infrastructure to successfully run their operations.

Businesses can also tap into a global talent pool by outsourcing to the Philippines, accessing skills necessary for roles that may not be locally available.

Benefits of outsourcing

Business Process Outsourcing companies (BPOs) generally operate from within developing economies. This provides several benefits to businesses looking to outsource their repetitive, time-consuming and transactional business processes. These include:

Cost reduction

Outsourcing can save your organization money by having day-to-day tasks completed in a lower-cost economy, such as the Philippines, where employment costs are up to 70% less.

 

Hiring new staff is an expensive process. Many overhead costs come alongside hiring a new offshore team. The right outsourcing provider can take care of these costs such as recruitment, human resources, new office equipment, superannuation, payroll tax, workers compensation, IT and overall management supervision.

 

Apart from the engagement costs, you would only be sacrificing your time to train your new employees, which is a long-term investment for your business.

Increased business efficiency

Outsourcing allows you to allocate time-consuming and repetitive tasks to an offshore employee instead of your onshore team. That way, your local team can focus on what they do best and what motivates them, while your offshore team appreciates the opportunity to support your business. This combination improves productivity across the board. In the long run, outsourcing also helps increase efficiency and job satisfaction for employees.

 

Outsourcing can also enhance customer satisfaction by improving the quality of your customer interactions, increasing your availability to customers and providing your customers access to expert services at their convenience.

 

Businesses can set up a 24/7 customer support line to allow their onshore team to focus their energy on nurturing relationships while your outsourced team expertly handles customer service queries.

Business growth and scalability

One of the many reasons organizations struggle to grow is a lack of funds to invest in additional resources to support growth objectives.

 

When faced with a sudden increase in demand or influx of client requests across different business functions, often businesses don’t have the time to recruit a new employee to leverage potential growth opportunities. Efficient outsourcing providers can have your outsourced team set up in as little as 6 to 8 weeks.

 

By hiring an offshore team, you will free up funds that can be used to reinvest back into the growth of your business. With the additional support of an offshore team, you can increase the capacity for your organization to take on more work.