Why Do Companies Outsource?

Jun 19, 2019

A Company’s Success Can Rely on Outsourcing

Businesses have been outsourcing since these recent decades and even more have ventured as time passes. Studies show that outsourcing amounted to $88.9 billion globally in 2017 and in 2016, 78% of businesses all over the world felt positive with their relationships to their outsourced company. So Why do companies outsource?

 

When an entrepreneur establishes her company, she wants nothing less than the best for it. She wants it to prosper, to develop and she finds ways to do it. Outsourcing is one key an entrepreneur can keep up with her businesses’ progress. Here are the reasons why companies prefer to outsource.

 

Cost Reduction

Of course, every company wants to keep their profit as high as possible. They do that by cutting off expenses as much as possible. 59% of the reason why companies outsource is cost reduction and it is effective since companies often hire from countries with lower labor wages such as Philippines, India, China and others. More so, when you outsource from these countries, you not only save a lot from labor, you also helped those you outsource since the amount is still relatively high for them.

 

Enables Focus on Core Business

This reason applies mostly for startups. When you’ve got a business running, there’s a lot of things to do but you need to focus on your main tasks for the business. To keep yourself on track of your major tasks, often go for part timers, experienced freelancers or small agencies to help you out.

 

Solves Capacity Issues

The bigger the company, the more customer it has. And the more its consumer, the more the queries it has to attend to. No matter how big a company is, it may not have enough employment to attend to its customers’ concerns thus they run to BPO (Business Process Outsourcing) agencies. Most agencies who attend to these services are call center companies. They handle calls from their clients’ customers and takes care of their concerns for them.

 

Enhance Service Quality

Every company that wants to progress regularly upgrades its services. To upgrade service means trying something new. To lessen the risks of failure, companies outsource. They work with experienced freelancers or agencies with greater and broader experiences to contribute to the improvement of the company’s service quality.



Critical to Business Needs

There are times when a company or a business encounters a situation where none of it’s employees can have it taken care of. For example, An entrepreneur is starting up a toy business. Logistics, employment and everything else are set however it doesn’t have branding, packaging design, and logo. Neither the owner nor it’s employers know how to design and they need great branding and graphics to sell. That’s when they turn to graphic designers. They can be freelancers or an entire agency, they can definitely help with the designs.

 

In case several situations come to your company and you may not be able to address them internally, never hesitate to outsource experts because a company’s success can always rely on outsourcing. They can always help you out.

 

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