11 of the Best Advantages of Outsourcing

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Is outsourcing really beneficial? Since outsourcing started in the 1980s to the 1990s, there have been a lot of questions about its advantages.

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Outsourcing workers has been the practice of many businesses in order to improve gains and create success and cut costs. Over the course of many years of the ever-changing global economy, outsourcing and even offshoring has become synonymous to cost efficiency in business and enterprise.

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Many companies have outsourced their team members in order to not only cut their spending but also to gain global talents who may offer a better skillset than just hiring from the local pool. Aside from gaining access to the global talent source, Outsourcing can also provide a technological edge and a work system for the companies who employ such.

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It is worth noting that through outsourcing, one’s company can find essential gains that can boost a company’s productivity and profit.

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Here are 11 of the Best Advantages of Outsourcing that you can benefit from.

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1. Getting access to a larger talent pool

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With globalization giving access to millions of businesses to a larger talent market, outsourcing has now become a solution to find the best fit for many companies. A big talent pool means the ability to find the best possible candidate to fill the role that you need in your team.

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You can hire freelancers or staff members from outsourcing companies around the world to do detailed tasks that a local hire may not be able to do. You may find that gem of a worker from someone overseas.

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Now aside from the skills and capabilities that a global hire can give, the price of paying one may even be lower or just the same as someone who is hired locally.

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2. Lower business expenditure

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Hiring remote staff members can save you not only labor costs but also cut expenses on the infrastructure, HR, and miscellaneous items. Outsourced workers need not work in your actual office, they can just work remotely. This can save you space and the need to build a work area for them.

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Another point of savings would be the tools and equipment that you might need to spend money on should you hire locally. Most offshore workers do have the tech to work and provide you with the service that you need using their own equipment.

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Of course, the cost of hiring a remote worker who is located on an offshore site can also be more affordable than getting a local staff. Many countries like India, Colombia, and the Philippines have very talented workers and have lower salary amounts to be paid due to the lower cost of living in these countries. The higher conversion rate of the local currency can give companies savings.

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HR is another cost companies can save on. Many outsourced hires are managed by their own staffing companies. This in turn saves you the need to hire someone to look after the outsourced workers.

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3. Getting tasks done quickly and efficiently

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Freelancers and outsourced companies normally operate on a timeline. Most of the time they operate on a project basis. And because of this, they try not to delay so that they can take on more tasks. If you are in a rush, you can pay extra to move the project in a faster speed.

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Many times, when you outsource work, your hire will move quickly to get the task completed so that you will give them a satisfactory review or hire them again in the future. There is a big pool of outsourced talents therefore they try to compete by showing you that they are always the best option to choose. This tt be seen in the quality of the work they do and how fast they do it.

4. Cutting down on labor expenses

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Offshoring has been a controversial issue when it comes to job security for the local talent pool. Outsourcing workers from overseas countries have been part of many discussions related to labor and the national economy because of the fear of losing jobs in one’s own country. But of course, there are many benefits when related to hiring workers from overseas.

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When hiring remote workers from countries with a lower cost of living means fewer expenses for different companies. This cuts down on the cost of paying employees. You can hire a remote worker to do the repetitive tasks in your company such as accounting, tech support, customer service, graphic design, social media management, and many more. The resident staff can on the other hand do the more nuanced tasks in your local office.

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Typically, offshore workers would cost about 40%-50% cheaper than hiring someone who resides locally. These savings can be used to fund your company’s growth such as getting new equipment for your local staff, buying stocks and raw materials for your products, funding research and so much more.

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5. More business hours

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Typically, most companies operate from 8 AM to 5 PM during business hours. Most local customer service teams run on the same time frame. But through outsourcing, you can channel in the international workforce to work for you hours beyond the local business time. You can get them to answer inquiries and take calls 24/7 should they deem it possible.

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There are many staffing companies that provide customer support staff, virtual assistants, and so on who can do work for you around the clock. They operate on a more flexible schedule and thus, your company is able to service your customers more.

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6. You can make work relationships much more simple

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Most companies, especially those whose employees have worked together for a long time treat each other with a lot of care and compassion. Employees form a serious bond becoming like a family. But having a familial bond among workers can also complicate your operations. It would be difficult to make big decisions if it were to say hurt one employee or another.

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On the other hand, drawing boundaries can be much easier if you employ a team who resides offshore. Having no face-to-face connections, your workers can work more productively and efficiently. And if they do not adhere to the company’s need for discipline and output, then you can easily let them go by informing their staffing company. This saves you the hassle of needing to deal with them through HR.

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Pushing for great outputs does not mean you are not humane or kind, it just means you want more productivity.

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7. Targeted outcomes and projects

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Hiring remote workers can allow you to hire people for specific projects. Freelancers can work for project or output-based contracts where their tenure is based only on the project they need to finish. This means that you do not need to hire someone full-time when in fact you only need a project-based worker.

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If you need someone to give you a specific project, giving you more customer support for the Christmas Holidays, or get your ledgers in check, then you can hire seasonal online workers. If you need a couple of videos made for your TikTok or YouTube page, then you can just hire your workers to complete a set of videos and that would be all.

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8. Have better customer service

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Most customer service companies located offshore are very good at providing excellent support services. They have extensive experience in customer and technical support. They know the science of answering calls, giving empathy, showing concern to your customers, and most of all, resolving issues. They train their staff and give them ample product knowledge as well as the soft skills to take care of your callers and provide them with solutions.

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A lot of offshore customer service teams are known to have innate empathy and respect that they can handle even the most irate of callers. They can help resolve issues without showing disrespect to your customers. And of course, better customer service means better customer loyalty.

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A loyal customer base is a solid foundation for your company’s successful future.

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9. Better Marketing and Advertising

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Outsourcing gives you the ability to do external marketing and advertising. Through outsourcing, you can experts in marketing from around the world whom you can leverage in pushing your campaigns further forward. Having a diverse pool of talent gives you an edge over your competitors when launching ads to the public. You can hire several marketing talents for the price of one person and get better outcomes with your marketing efforts.

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Through outsourcing, you can have speedier execution of campaigns, have access to new ideas and perspectives, be more updated, and have better tools at your disposal. In marketing, cheaper does not mean less value. If you hire a brilliant team, then your marketing initiatives can make waves and help people choose your brand more.

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10. Having a Technological Edge

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Aside from getting highly efficient hires for a fraction of the cost, outsourcing your people can also give you a tech edge over others. Many of the outsourced recruits have a plethora of tech under their sleeves that they can use to help you in doing your business. They most probably have the software, tools, computers, and tech to do their tasks expediently for you.

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Many of the tools that freelancers and outsourced staff hold may be expensive for you to buy for your own company especially if you will not be using such for the entirety of your business. Having the technological advantage that offshore staffers can make a big difference in giving you a better margin of growth as compared to your competitors.

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11. Simpler management

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If you are afraid of the difficulties of hiring people from overseas and having to manage them from afar, well you don’t need to do so.

Many offshore hires come from offshore and staffing companies that manage their own talents and create systems to easily manage them. Such companies take care of the whole HR role of managing your offshore team’s coaching, payroll and even monitoring. They also have the tools to ensure that your agents are productive and working efficiently. Tools such as time trackers and productivity sheets provide you with the peace of mind that you are getting the most of what you pay for.

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Staffing companies can help simplify the management of your staff giving you the time and energy to administer to your other business needs.