Outsourcing is a big recent buzzword in the business world, as more quality and cost conscious companies all around the world are turning to destinations such as India and The Philippines for outsourcing their own non-core company procedures. Therefore, just what is outsourcing and what would be the advantages of having an offshore business partner do your job for you?
This article looks at the advantages of outsourcing and the value proposition provided by various Australian outsourcing companies.
What is outsourcing?
Outsourcing involves entrusting some business procedures to specialised businesses located overseas and that are external to your own business. Any business process that may be performed from an offshore place could be outsourced. This includes acts such as transaction processing, payroll and purchase and stock management to name a couple. Additionally, you will find a great deal of call centre services which are being outsourced as well. The existence of new technology and the internet has facilitated high levels of business outsourcing recently.
Advantages of outsourcing your business processes
There are many advantages of business process outsourcing to destinations across the world. A number of them are:
The most evident and observable advantage relates to the monetary savings that outsourcing brings about. It’s possible to get your job done in a lower price and at better quality too. Because of gap in salary between western nations and developing nations, the identical sort of work that’s achieved over there may be completed in India at a fraction of the price tag. It is evident that cost savings can be as high as 60% when outsourcing to places such as India. There are also quality standards in place, ensuring that services are high quality yet low cost.
When working with an outsourcing partner that specialises in a particular field, they bring years od experience and expertise into their work and have complex resources in place to carry out work. Hence, they are able to do the task better using their expertise and economies of scale. This also contributes to a growth in efficiency and productivity in the procedure thereby leading to the bottom of your business. As a business owner, there are many responsibilities that you may not be able to keep up with, tasks such as IT, web development and accounting may be better off with professionals.
Concentrate on core regions of business:
Outsourcing your business processes would spare your energies and allow you to concentrate on creating your brand, invest in research and development and continue on to supplying higher value added services. For example, your successful and busy laser skin clinic may have many employees that need to be monitored through payroll and remunerated correctly, but you may not have the personnel or office space for a human resources team. Therefore you can outsource payroll and save time and money to providing top laser treatment services to your customers.
Save on infrastructure and technology:
A great benefit of outsourcing is the elimination of the need for infrastructure and resource investment. The outsourcing partner is responsible for staffing and infrastructure needs therefore the client has no additional costs and tasks to worry about. No need for expensive large offices and software to manage business processes.
Accessibility to expert resources:
You don’t have to invest in training and recruiting expensive tools for your industry. Providers deal with their resourcing needs using their pool of highly skilled sources. Outsourcing companies often specialise in one area, such as accounting, where they have access to the best software and skills in the field, that you may not have the privilege of owning.
Time zone benefit:
Aside from the cost benefit, another much touted advantage must do with the time zone between your nation and the place you’re outsourcing to. Get your work done as you’re shut for the day and wake up to completed work waiting for you. This exceptional benefit provides you the advantage of round-the-clock company operations and better use of time.
Quicker and better services:
Ensure that your service offerings better using top quality deliverables and reduce the lead time it takes for your merchandise to achieve the marketplace. Make things happen faster in your business without the worry of spending time and resources doing miscellaneous activities. You can focus on your services and leave the back work to the experts.