How outsourcing saves money

Labor is one of the biggest operating expenses for most businesses, with the likes of recruitment, training, wages and annual leave accounting for as much as 70% of total costs in some organizations. Hiring more people also typically requires additional infrastructure such as office space, furniture and IT equipment and, in turn, many organizations find themselves struggling to balance the cost of staffing with the potential sales or revenue they may generate.

Outsourcing allows businesses to ease such financial pressures, with studies finding cost reduction is the number one reason1 businesses choose to outsource.


With the cost of living in the Philippines much lower than in Western countries, partnering with a quality outsourcing provider can save businesses up to 70% on employment costs for the same level of talent and output quality. In the battle to maintain pace with competitors, outsourcing is a simple but highly effective way to make savings in one area and reinvest them where profits can be maximized such as product research, marketing or increased production.

Outsourcing also allows executives and managers to avoid many of the administrative burdens associated with staffing, with providers taking responsibility for the likes of recruitment, training, performance management and overall supervision. Such benefits are a major reason why the global outsourcing market is set to rise to almost $436 billion by 20282.

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Reduce costs while increasing productivity

Organizations are constantly searching for ways to realize their potential and that was the case for a leading Australian firm that adopted an offshoring strategy in a bid to grow profits, improve quality and increase efficiency.

Having invested heavily in onshore talent for key business areas, the company partnered with MicroSourcing in mid-2014 and initially recruited three accountants and one data analyst. The offshore team has now grown to 18 Philippines-based staff who are playing a vital role in helping their onshore colleagues achieve success.

This includes helping deliver productivity increases of 34%, reductions in associated administrative costs of 50% and consistently high customer satisfaction ratings on the back of fast, accurate and efficient service.


Get in contact today and have your offshore team up and running in as little as six weeks.