Outsourcing has become the one-stop-shop for Businesses to save a ginormous amount of their valuable resources. Most small to medium enterprises nowadays have chosen to offshore some of their business tasks. Even bigger enterprises have also started to adopt this marketing trend.
Successful outsourcing will provide great benefits to your business as well as cost savings to your business. Like any other venture, outsourcing also takes some time, planning, and enough research. You cannot just promptly decide to outsource and then instantly choose your third-party provider without proper assessment. Before you make a decision, let us first give you the basics of this type of business strategy.
What is Outsourcing?
In a nutshell, it is a business practice of contracting a third party outside your company to perform some of your daily processes and services that are traditionally done by your in-house staff. Companies use outsourcing mainly to reduce their costs and business expenses. This practice also allows companies to focus on their business’s core functionalities.
Outsourcing Services for Start-Ups
Start-up businesses and small-time enterprises are the ones to benefit the most from outsourcing. Why? Because it is somewhat impossible to magnify their resources considering how ample and limited they have. Nonetheless, this may have a great effect on their business output and at the same time, the employee’s effectivity. However, through the use of outsourcing, it is possible.
Although outsourcing has become famously known around the world as it is considered to be cost-effective. There are still business owners who remain skeptical about offshore outsourcing. Here are a few of their common concerns:
- They are not completely in control of the outsourced work. If you outsource a certain project, the people you have hired are the ones responsible for it. Although you may not closely monitor them, know that you can always ask for updates to keep you on track on the project’s current state.
- The company’s confidentiality might be at stake. It’s true that when you outsource, it is inevitable to give confidential information to your chosen outsourcing company. This is necessary to achieve a successful outcome. However, know that the Philippines coheres to the Republic of Act No. 10173, also known as The Data Privacy Act of 2012.
- They are not Native English Speakers. While this remains true in all forms, you also need to know that 92% of the Philippine population can converse in English because it is considered their second language. In 2017, the Philippines was in the top 3 Asian countries that have the most number of population who can speak the language fluently.
As an entrepreneur, it is normal for you to think of the possible risks once you decide to outsource. This is why we have created a list of guidelines for you to consider before you hire a third party to do some work for your business:
1. Communicate Effectively
Effective communication applies to all. Indeed, communication is always the key to success. Furthermore, effective communication solves business-related problems that also result in the creation of processes that will improve a company’s performance and productivity.
Establishing the right communication channels is an absolute requirement in outsourcing. Keep in mind that your communication strategy with your remote team must be discussed fright from your negotiation stage.
2. Be Precise
A successful outsourcing strategy always begins with clearly defined objectives and goals. As a business owner, you have to be clear and specific. Remember that since you are dealing with people from the other side of the world, the communication barrier is inevitable. You must specify what kind of service/s your business needs.
3. Set Realistic Expectations
After laying out your goals and objectives, you have to revisit and reassess everything to make sure they are realistic. Just like in any other venture you have to keep your expectations in check. Note that setting too high expectations to achieve in a short period can result in a disaster so it is much better to take a long-term view on the project.
4. Be Rational
Do not set impossible deadlines or demand unrealistic results. Although you are hiring well-experienced professionals at a cheaper price, remember that they are not magicians. Be realistic and keep in mind that you are still working with humans.
5. Research
Do not just immediately hire anyone. Know that there are tons of outsourcing companies available out there. You need to have the best solution for your business and also the right people who are perfect for your business’ core functionality. Investigate and rather choose the company that has been in the business for a longer time. Take a look at their portfolio and client reviews, then decide.
6. Pay the Right Price
The common reason why companies choose to outsource some of their tasks is to save money. However, for business owners who choose to outsource, know that you should pay your hired workers the right price that they deserve. In reality, outsourcing allows both parties to earn considerable profits. Both parties need to assess and analyze the scope and pricing of an outsourced project before signing the contracts.
Although outsourcing in the Philippines gives you an advantage because you can save a lot of money rather than if you are to hire an employee in your country, you also need to consider that these people have invested their own money and effort to improve in their profession.
Offshore with PrimeOutsourcing
Outsourcing has now become an essential part of every business. Today, companies go in for remote work to help their staff find a work/life balance, have access to top talent worldwide, and save costs. As seen in today’s industry, the Philippines has become one of the trusted countries foreign companies outsource to. The outsourcing industry in the country is booming and is seen to continuously flourish in the coming years.
With PrimeOutsourcing, you will have direct access to professional talents that are well-experienced in different types of industries. We have an array of services that will cater to your business needs. Contact us today to request a quote, for further inquiries, head over to our FAQs page.
