Wednesday, 16 August 2017

When Should You Take Advantage of Outsourcing?

The BPO industry in the Philippines is going strong, with a workforce amounting to at least 1.3 million. By 2018, it’s likely that outsourcing will become our country’s greatest source of revenue, overtaking even the remittances from overseas Filipino workers (OFWs).

Clients include both local and international companies. More and more businesses worldwide are turning to outsourcing, and it isn’t confined by geography anymore. Offshoring is taking off–it has become common for, say, a US company to delegate some of its processes to a BPO in the Philippines.

You might be wondering if it’s time to take advantage of outsourcing yourself. Refusing to outsource may compromise the competitiveness and agility of your company–do you want to bog down your in-house staff with tasks that can be handed over, anyway? On the other hand, outsource too much, and you risk leaving your data all over the place and diluting your company’s branding.

Choose what to outsource

Outsourcing can be useful for any company–even startups–as long as you’re strategic about what you outsource. First off, think about what you’re offering, what your ultimate product is.

If you own an Italian restaurant, then your customers value your food the most. They’re going to complain if the taste of their pasta suddenly changes. Because food is at the heart of your restaurant, then you shouldn’t outsource it. Rather, hire your chefs and train them to create pasta that’s uniquely yours.

Your restaurant laundry, though, is a completely different matter. Customers will hardly notice if you hand over your rags and uniforms to a laundry service rather than washing them in-house (assuming, of course, that they’re clean either way).

You can say the same about your taxes and payroll. All of these are essential to running your restaurant, but your customers won’t care about how exactly you do them. It’s generally safe, then, to outsource them.

Consider if it’s only short-term

Another guideline is to ask: is this only short-term or cyclical? If none of your in-house staff can do it conveniently, then you can outsource.

Take, for example, a software company that needs an official video. It has a small team of designers, but none of the designers have experience with videography. Outsourcing the video would be more practical, compared to having them learn it when it’s only a one-time thing.

And no need to fret about lack of skill when you take it outside–there are plenty of BPO companies, freelancers, and digital agencies out there with top-notch services.

Invest your resources wisely 

The greatest benefit of outsourcing strategically is that your resources are freed up. With the increased manpower, you get more done in less time, and your in-house staff can hone in on their tasks.

When considering whether to outsource or go the DIY route and hire your own employee, do a cost-benefit analysis. Having a new employee means you’ll be paying more than that employee’s salary every month–add benefits, insurance, and taxes to that. You might also need additional space, which translates to increased rent. If the value that the employee will potentially contribute exceeds the costs, then go ahead; if not, it might be better to outsource.

Around one in seven businesses in the Philippines is already turning to outsourcing. Do it smart, and you’ll be making a wise investment towards a leaner, more efficient company. 


Sprout Solutions is an HR (human resources) and payroll software company in the Philippines that powers HR for companies like Rappler, Xurpas, Shakey’s, and Century Pacific.

Click here to see the testimonials of our happy customers.

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source https://sprout.ph/blog/when-should-you-take-advantage-outsourcing/

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