The Importance of Outsourcing: An Overview

What is BPO outsourcing?

BPO stands for business process outsourcing − BPO is a particular form of outsourcing. With this type of outsourcing, the non-core tasks are handled by a third party, or outsourcing company. This external partner can be based either in the same country or in a different country from the business. The sort of non-primary tasks of the VA cover back-office work such as data entry, personal services, customer services, research, or even more skilled tasks such as graphic design or software development.

The advantages of outsourcing in transforming a business

Outsourcing can be a game-changer for many businesses. Just look at Google. This company, worth over $2 trillion, has much of its success associated with outsourcing its business processes and several other functions to external providers. Yet, Google’s core work is conducted in-house. Moreover, in terms of outsourcing staffing the formula differs from traditional employment. The workforce is normally located offshore, therefore can be varied, and in some cases multicultural. When businesses outsource tasks they gain a flexible, high quality workforce that can be scaled to match the needs of the company. Additionally, the workflow is more precise and shorter. This all leads to increased efficiency.

The core reasons for outsourcing:

Cost savings

Besides a flexible workforce, the main reason businesses outsource is lower costs, therefore savings they can benefit by. As Lee Kuan Yew, the former prime minister of Singapore once remarked, “If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business.” Businesses will always seek ways of outperforming their competition, thus dominating the market. Using outsourcing makes sense since it’s the most cost-effective staffing solution. The normal fees associated with hiring an onsite employee would demand taxation, compliance fees, legal and recruitment fees, office management and healthcare benefits. However, this list can be more extensive depending on the country and the business themselves. Yet, outsourcing is up to 70% less. Not only is outsourcing 70% cheaper, but they also remove all of the complexities and costs of employment – legal, recruitment, compliance, taxation, healthcare and office management – to name a few. Outsourcing offers a supremely flexible approach to employment.

Great people

When a business outsources, it is not limited to hiring people that they can afford locally. Most of these will not have the skills the business requires. But sourcing out means access to high-quality candidates. The only difference between them and a local candidate is location. More so, in many cases an outsourcing company will handle the virtual assistants’ payroll and admin. These include screening of candidates, and doing regular check-ins.

The ability to scale with ease

Especially for startup companies that want to move fast, outsourcing allows them to onboard but also off board staff fast. Besides the agile ability they gain, they can also take on projects, which they would otherwise have had to decline due to capacity concerns. The result is more income, and faster growth, particularly over and above the competitors.

Change your life, and that of your team 

Companies can gain increased contracts, higher profits, faster growth, but also more time and increased productivity. This as the virtual assistants can take over the arduous tasks, so that the onsite staff can focus on their core tasks. What this means, is better use of resources, since a VA can do the same repetitive tasks, but at a lower cost. The onsite team will also have more time to spend with their loved ones and this will boost their wellness. If you boost wellness, you not only maintain these employees for longer but they will be more willing to work harder at the business.

The lives of the virtual assistants will also boom

When you hire remote assistants to undertake tasks, you are giving them employment and a livelihood. You will therefore help them to upskill themselves, as they will be working with an international company. This experience will be invaluable for their future career path. Also, although the VA salaries may appear low, once converted to their currency the income will be high paying local opportunities.