Companies tend to consider outsourcing simply because they find it more profitable. They consider outsourcing as a superior tool for their business. Some may see outsourcing merely as a trend, but it has improved significantly ever since it was formally considered as a business strategy in 1989 (Mullin, 1996). Outsourcing has boomed on an ever growing global stage. It became beneficial not only to SMEs, but even large businesses can benefit from this as well.
‘Outsourcing’ simply means shifting portions of business operations, tasks, or processes to a third party provider rather than performing them internally. As a business strategy, outsourcing is proven to reduce overall costs and increase efficiency.
What’s the Real Score?
There are numerous benefits of Business Process Outsourcing circulating the world wide web to justify convenience and advantages. Here are some of the obvious factors of outsourcing that entrepreneurs and business owners can profit from.
- Cost Advantages – outsourcing reduces operating costs. Same quality workforce at a lower cost.
- Improve Focus – essential to a company’s core business ideology. Leaders and managers can focus on the main mission when they are able to hire highly skilled experts from outsourcing to cover defined processes. Companies can then use internal sources to function for other purposes.
- Efficient and Better Service – BPO companies provide expert staff ensuring excellence and outstanding quality of work as a priority goal.
To Outsource or Not?
Outsourcing sounds simple but on the other hand, it is wide, broad and complex depending on the needs of the company. Outsourcing permits organisations to be more efficient and versatile while reducing cost. Adapting to major change and improvement, presents an enormous opportunity to see benefits of outsourcing across multiple decentralised economies. The Business Process Outsourcing industry has made a great contribution to Globalisation. It is accompanied by diversity and convergence. We see it as a huge opportunity to include new business partnerships with flexibility to deliver exceptional, world-class service. Julia Gillard, the former Prime Minister of Australia once said, “My guiding principle is that prosperity can be shared. We can create wealth together. The global economy is not a zero-sum game.”
Of course, business is a risk. From a newly opened small-scale business to an emerging multinational corporation, risks are always present. It’s just a matter of determining on which one is worth the squeeze.
So if you’re planning to start or grow a business, you might want to look at the possibility of entering the Business Process Outsourcing industry.