Outsourcing is hiring an independent or third party company, for example, an offshore outsourcing firm in the Philippines, to manage some of your company’s tasks. These tasks are usually not part of the core or main business tasks. For example, a small business that specializes in publicity and events may want to hire an accounting service provider for its accounting tasks. Or a huge company that manufactures cars may consider hiring a search engine marketing service provider for its online marketing campaign. Outsourcing is usually a strategic solution for companies. It is aimed at lowering overhead costs, while getting the jobs or tasks done. But there are also other advantages of outsourcing that some companies want to leverage such as the chance to increase capacity or productivity and gain access to skills and technology that are not currently not available onshore or in-house.
Here are some reasons why companies should outsource.
(1) Increase revenue: For a business to stay in business, it must profit, and that relies on upon the amount of work it can produce.
(2)Stay lean: Companies today are doing more with less and operating with a lean staff to save money on overhead.Outsourcing empowers organizations to build profitability without bringing about the extra costs.
(3)Deliver faster and improve satisfaction: In a quick paced society, everybody needs their necessities met very quickly. Most organizations can't oblige implausible desires, deadlines or delivery dates without anyone else's input. Outsourcing empowers organizations to expand efficiency, streamline forms and give speedier and more reliable deliverable.
Growing long-term, positive working associations with customers are the way to success.Outsourcing superfluous exercises permit organizations to invest more time with their customers, give extraordinary service and exceed their expectations.
(4) Get competitive: It's hard for little organizations to compete with bigger ones since they have less in-house assets.