The beauty of outsourcing your non-core functions is that it lets you save up to 70% on labor costs without having to cause you to lose quality performance or product. Outsourcing in developing countries like the Philippines is even more ideal as they have lower tax and special areas wherein they offer tax holidays to encourage investors.
*Small scale businesses composes of a third of the total amount of businesses that outsource. More than likely, businesses that have less than 50 employees outsource their business needs that companies that have more than 50 employees.
*And according to research by Christine Umawahoro Kayumba on the Impact of Outsourcing on the Organizational Performance in Rwanda, she mentioned that:
“Many organizations have started using outsourcing strategy over the years but still many organizations didn’t realize the full benefit of it. Some have experienced low productivity, their they failed to attain expected cost-saving and their profitability has not been balanced or stable. “
That being said, it is true that most businesses that outsource really fail to realize the full potential of outsourcing some of their business needs. Most think that saving almost 70% of the costs is the most benefit they can get from outsourcing.
Utilizing 70% of savings from costs is often overlooked. Businesses think that simply cutting costs and maintaining quality operational tasks is what actually gives them the competitive edge they need against other businesses. There are ways on how you can effectively use the savings from outsourcing your non-core functions such as data entry to other more complicated tasks.
Increasing your focus on your core functions.
Aside from saving on costs, the main purpose of many businesses is to focus more on their core functions. Core competencies that will give your company the edge or the advantage in the local or global market like strengthening your brand and improving your service quality.
Expanding Business Scope
Yes, your savings from outsourcing can be used instead to expand your business expertise. And you can now offer a much wider and specialized service for your clients. For instance, if you are an insurance company that focuses on auto/car insurance, you can spread your reach on to Property and Casualty insurance too.
Improving your in-house team.
Providing training for your in-house team and increasing their incentives are some of the ways that will give you an edge against your competitors. Think of it as an investment too. A good outsourcing team can only do so much for you, however, an in-house team that has your back is a sure way to increase your competitive edge.
Upgrading your office quality.
Investing in a nice office will increase productivity and efficiency. An up to date hardware and software for your business is a great investment too. It will keep your in-house team on top of their game. As mentioned earlier, your offshoring outsourcing team can only do so much at their end. Inefficient office equipment can set you back and that of course, in turn, cost you much more.
These are some ways that you can utilize your 70% savings from costs by outsourcing your non-core functions. Particularly, outsourcing from the Philippines guarantees that you are provided with on par quality service. The Philippines is one of the top outsourcing countries for some years and the country is expected to stay at the top lists of countries ideal to outsource.
Virtual Colony is an outsourcing company that is located in one of the regional provinces for the country that is considered to be the next growth area. The Colony offers you a variety of outsourcing needs for back-office support to more complex tasks such as Insurance Underwriting.
*Sources
