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The Concept of Outsourcing


The world is changing rapidly and in order for businesses to survive they must change with it. The most recent change is the emergence of global outsourcing as a genuine and economically viable option for businesses.

The concept of outsourcing is not a new one. Prior to the Industrial Revolution, companies handled all their business processes by themselves. They did all the design, production, packaging, marketing, sales, distribution, accounting, tax, audit, and legal activities in-house. However, with the Industrial Revolution came the realisation that this was not the most efficient way of operating.

The emergence of external service providers paved the way for companies to outsource roles that were not a part of their core business. The result? Improved productivity and consequently, increased profit.

The face of outsourcing has changed in recent times. Because the world today has fewer boundaries between nations, businesses are now branching out globally in a bid to create strategic partnerships with foreign economies. The era of holding onto core activities has all but died.

Big businesses are now more profit-driven than ever. They no longer mind outsourcing their core activities overseas if it yields more profit for their company. It is now standard practice for big businesses to outsource to companies situated in countries outside of Australia with the Philippines quickly becoming one of the most popular outsourcing destinations.

PBO Global know that with the ability to access skilled and professional staff through overseas outsourcing, companies are no longer restricted to the local job market for recruitment. In addition, with the speed of innovation in technology and business processes, there is an increased need for companies to latch onto the latest processes in order to remain relevant and stay ahead of competition. It is often not possible to satisfy this need with local candidates. Therefore, global outsourcing provides the avenue for companies to hire highly experienced personnel quickly to fill these new roles.

More companies are looking towards overseas outsourcing for custom skill sets that may not be readily available in their localities. Business demands keep rising and so does the need to fill these demands. Outsourcing has spread to virtually all areas of business needs. Initially, outsourcing was mainly used for data entry and helpdesk functions, but today, the demand for professionals with advanced experience and qualifications in creative and technical functions, has been on the rise. These professionals include software engineers, web programmers, coders, graphic designers, user interface and user experience designers etc.

The development and growth in remote technology applications has also contributed to the growth of outsourcing. For some business functions, the need to establish physical structures to accommodate innovations is no longer necessary. Cloud computing and remote storage affords businesses the opportunity to fulfill these needs with less cost, and this cost-effective element of outsourcing has become a huge attraction to companies worldwide.

The need for outsourcing of custom roles will continue to grow with the expansion and diversification of efficient remote technologies. The availability of experienced professionals will also be a key to sustaining the outsourcing trend by businesses.

The world is changing. Businesses must change too. Global outsourcing is an economically smart way to do just that.

Where does a company start when wanting to outsource? What should they look for in an outsourcing company?
• The outsourcing company should deliver tailored solutions that create a customer-centric experience. Your organisation should benefit from the creativity and passion of the team.
• Whether it’s just a seat or an entire centre, the company should provide a turnkey solution with clear guidelines of how to operate. By providing these details they can ensure a smooth transition into your new outsourcing community.
• The outsourcing organisation should have  an IT solutions manager to work with you on your business setup. They should recognise that many small to medium businesses may not necessarily be ready for an outsourcing solution. The team should ensure that they provide clear and concise instructions and step you through the process, with timelines and expectations.
• Experience and skilled planning ensures the outsourcing organisation understands the need to deliver more to your customers, faster. An organisation should have an understanding of the capability of teams in the Philippines and should help you balance the load to deliver all your expectations.
• The security and network should provide you with a solution with limited downtime and maximum efficiencies.

If this article has created more questions than it provided answers. Great, I have done my job. Outsourcing into the future will be necessary to maintain the growth and competitive nature of your business. It should not be entered into lightly and you should seek out a trusted partner to support your enquiries.


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