What Is Outsourcing and How Does It Work?

Posted on July 19, 2013

Another name for outsourcing is Business Process Outsourcing. BPO refers to the process of hiring the services of another company/ individual, either internationally or domestically to manage a few business functions for you. In the recent past, outsourcing has evolved into being a common practice that enables small, medium and large businesses to get access to skills and services that they would otherwise find hard to achieve either because of manpower or financial restrictions. Outsourcing can help your business grow as and when required, without you having to make any major investment.

Low cost is the biggest advantage of outsourcing

Offshoring allows your business to shift your focus back onto your core business tasks, while helping you cut down on costs and improve your efficiency at the same time. Over the last two decades, companies, both big and small have realized that there are many advantages of outsourcing various kinds of work, but the biggest and most prominent benefit is that you can save money. Individuals and companies that offer outsourcing services out of India, China or The Philippines are able to do the same work for less, as they have few overhead expenses to worry about and also don’t have to provide benefits to their employees.

Outsourcing provides access to skills sets that you don’t have

With outsourcing, your company can completely focus on main business activities, while having the other details taken care of by an external company. For example, if you are launching a new service or product, then the best way to advertise it is through telemarketing. But you have no clue about telemarketing. What do you do? You simply outsource to an outsourcing company that provides telemarketing services, while you focus on answering the inquires from prospective customers.

Use your professionals for building up your business

With a few non-core, labor intensive and time consuming tasks out your hands, you can use your in-house professionals for more critical and broader issues within your organization. You will soon realize that this will bring in better productivity and improve your overall efficiency level.

Get access to new technology and world-class capabilities

Outsourcing companies are usually streamlined and have access to new technology and world-class capabilities – something that growing companies cannot afford to do or invest in on their own. Outsourcing is also great if your company is looking for new avenues and wishes to expand, as offshoring is a low-cost method of building foundations in other nations.

Outsourcing options are limitless!

The business tasks that can be outsourced are unlimited – bookkeeping, sales and marketing, accounting, web design and development, customer services, manufacturing, advertising, back-office work, administrative tasks, etc. Almost every imaginable service can be successfully outsourced.  Most outsourcing service providers fall into one or more of the following categories:

Get a competitive edge with outsourcing!

With outsourcing, you can easily give away one or more of your business tasks to be managed by an external company, thereby making your life a lot easier. Not only will your tasks be carried out by someone with the right know-how, but you can also save money, as compared to hiring someone locally to do the same work. Outsourcing can sometimes help you save as much as 60%. No matter what the service you are thinking about outsourcing, the bottom line is that outsourcing will give you the power to expand your business, while reducing cost at the same time.

We, at Flatworld Solutions are happy to answer any of your outsourcing queries – So please feel free to comment below. We love to hear from you!

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