Power of Outsourcing, Virtual Growth Agency [chrysanthemum read aloud .txt] 📗
- Author: Virtual Growth Agency
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What is Outsourcing?
Outsourcing refers to the way businesses entrust business processes to other companies or external vendors. It’s basically asking a third-party vendor to accomplish a task for you on a contractual basis. Outsourcing began in the 1980s when companies attempting to compete globally were handicapped by a lack of agility that resulted from bloated management structures. To increase their flexibility and creativity, many large companies developed a new strategy of focusing on their core business, which required identifying critical processes and deciding which could be outsourced (A Brief History of Outsourcing, 2006). Today, modern outsourcing are adapted by industries like Consumer & Industrial Products, Financial Services, Media & Telecommunications, Real Estate, Facilities Management and Procurement, and Life Sciences & Healthcare, and Technology.
Benefits of Outsourcing
There are a number of reasons why companies outsource, from cost cutting to employing expertise. There’s no doubt that outsourcing has enormous benefits:
1. Cut Back on Cost
This is the most apparent benefit of outsourcing. When you outsource tasks, you get your job done at a lower cost. You are also assured of exceptional quality. You can get someone to do quality service for a fraction of the cost. When you outsource services like medical billing, telemarketing, etc. to a low-cost country like India or Philippines , you are getting access to quality services that are offered at a much lower cost. You will also be able to avoid investing in tools or infrastructure that may not be necessary.
2. Improve Efficiency
When you outsource work to a partner like Virtual Agency Growth, you acquire access to years of experience and expertise in delivering results. Often, the outsourcing company could provide better work with their knowledge. This means better productivity and efficiency for your company. You don’t need to recruit or train individuals for these tasks. Outsourcing companies take care of your needs by providing high-skilled individuals who are well educated and boast of years of experience in the field. After you allocate tasks to your outsourcing partner, they share the workload of your employees. This allows you to develop your internal task force and use them more efficiently.
3. Focus on Core Processes
By outsourcing, you will be able to focus your time and energy on core areas of your business. This means you will be able to provide high-quality service and create excellent products. When you take on additional non-core workload, the quality of your business suffers. Outsourcing in such scenario to a third party plays an important role by allowing your key resources to focus on primary business tasks.
4. 24/7 Operations
The time zone difference between your location and the place you are outsourcing to, you can get jobs done while you close your business for the day. You wake up to completed service the next morning. This practically gives you round-the-clock operations. Offshore outsourcing to a country like the Philippines, which is on a different time zone, gives you the added advantage of making full use of your 24 hour day. Your outsourcing partner can take over and continue your work even after your employees go home.
5. Faster and Better Deliverables
When you outsource, you can focus on your core processes. You will be able to offer better service and high-quality deliverables. The time it takes to convert your ideas into products and service is faster as well.
6. Improved Risk Management
When you outsource, you can share risks with your outsourcing partners. You effectively reduced your burden. You are also able to focus on your staff or employees and use them more effectively. In a way, you will be able to achieve financial flexibility. You can scale your team up and down depending on your budget. You can even run your business at full throttle when you outsource.
7. Get access to skilled expertise
Skilled expertise is often needed in a growing company to foster success. This is one of the main reasons why businesses outsource. It allows you to focus on your core mission in providing a high quality product and service to your customers. Offshoring the task to people who can perform it better makes sense.
Diversity in Outsourcing
A recent McKinsey study found a strong correlation between diversity and profitability. The study shows that the most ethnically and culturally diverse executive teams are 33 percent more likely to outperform their peers ( Hunt, Yee, Prince & Dixon-Fyle, 2018). Here are some benefits on how culturally diverse outsource partners can contribute to the growth of a business:
1. More creative solutions result from a diverse culture of talents
People from varied cultures often have different methods of problems-solving. These people have experience working on different types of projects and may have even come across certain problems or challenges that other team members haven’t. Having access to a more diverse pool of knowledge, this makes the business run more efficiently or a project to proceed at a faster rate.
2. Diversity in cultures and practices of talents enables knowledge sharing
Combining the unique expertise and experiences of the team members facilitate knowledge transfer thus making an excellent environment for mutual learning. Both parties have the potential to learn from each other’s technologies and processes, as these tend to differ across both countries and organizations.
Businesses can utilize these benefits by outsourcing culturally diverse talents.
Should You Outsource?
If a task is critical to your operations, you need to outsource it if you cannot perform it efficiently. These days lead generation, web development, and social media marketing are tasks that have become quite crucial to business operation. You need to have an online presence if you want your business to matter. This is the harsh truth these days. People go online to look for things they need. It doesn’t matter what these things are. People are always doing a quick Google search for things they need or want. If you are not online, how can you reach these potential customers? If you cannot set up your website, or perform your own social media marketing, or do lead generation, it might be a good idea to outsource these processes to outsourcing partners like Virtual Growth Agency.
More reasons to outsource:
On the average, virtual assistants in the Philippines earn a starting salary of USD 4,330 and a mid-career salary of USD 6,672 annually. Businesses in the U.S., U.K. and Australia can save from 80% up to 92% of labor costs. (Comprehensive guide to payroll salary compensation, benefits, and allowances in the Philippines, 2019)
Save on healthcare costs and benefits (such as medical allowances or health cards) when you outsource. In the U.S. health insurance premium for single coverage would be $6,400 in 2016. In the Philippines, the premium coverage is $700. That’s 91% of healthcare savings. (Comparison of HMO and Health Insurance in the Philippines, 2019)
Small businesses save at least 38 hours a week or 1,900 hours annually when outsourcing for time-consuming tasks such as email filtering, blog management, transcription, data entry, and hotel and flight bookings.
Major US Companies that Outsource
1. Google
Google has been outsourcing remote employees for years. Everything from virtual assistant work, IT work, development, and more. Back in 2011, they had over 1,000 reps from 60 different countries. These reps were handling over 10,000 calls a week.
2. Skype
Skype has outsourced the back-end development of the app to 3 Estonian developers. While they initially outsourced the development, Skype brought these developers in as partners later.
3. WhatsApp
Since the popular messaging app was established, they have been outsourcing software development services. The company which only had 35 employees turned to Russia to attract talent and keep costs low. To date, they are one of the most popular companies worldwide.
4. IBM
A controversial article was published in 2017 stating that IBM had more than 130,000 Indian professionals working for them. They have more employees in India than in the U.S. IBM outsources software development to keep costs low, improve operational margins and maintain a competitive advantage. (Outsourcing Examples: Companies That Outsourced to Fuel Growth, 2019)
Types of Outsourcing
1. Professional Outsourcing
Includes any type of specialized, professional services like legal, accounting, purchasing, and administrative jobs. In Virtual Growth Agency, we offer professional services for Email & CRM Automation Set-Up, Website Automation & Advanced CRM Organization, Infusionsoft/ Clickfunnels/Active Campaign/Hubspot and other Automation Software, Sales Funnels, Lead Magnets.
2. IT Outsourcing
If you are developing an app, software, or technology then outsourcing the talent is absolutely recommended. Talents from India, Ukraine or the Philippines are highly skilled and specializes on these projects. Also, finding the right fit is much more important than finding a developer that is close to the office.
3. Project Outsourcing
Oftentimes, small businesses need help only with special projects, not full-time. Like redesigning their website, managing a paid search campaign, writing an ebook or organizing a business event. Outsourcing a project rather than hiring an in-house is the smarter choice.
Virtual Growth Agency provides all these types of outsourcing that will help small or big businesses alike. Our agents are highly skilled, efficient, reliable and professional in handling the tasks assigned to them. We offer different services that will surely fit your needs such as:
LINKEDIN PROSPECTING
LEAD CALLING
FUNNEL HACKING
YOUTUBE CHANNEL MANAGEMENT
LEAD SCRAPING
EMAIL MARKETING / NEWSLETTER TEMPLATES
SOCIAL MEDIA MANAGEMENT
MARKETING & SEARCH ENGINE OPTIMIZATION (SEO)
WORDPRESS DESIGN & UPDATES
GRAPHIC DESIGN / BRANDING
EBOOK & PRODUCT PROMOTION
CONTACT MANAGEMENT
DATABASE ENTRY
Unlock the power of outsourcing! Save time, money and improve efficiency. Finally have the time to focus on growing your business! Book a free consultation today.
References
A Brief History of Outsourcing. Retrieved from https://scm.ncsu.edu/scm-articles/article/a-brief-history-of-outsourcing
Why and What Do Companies Outsource? The State of Software Development Outsourcing for 2019. Retrieved from https://intetics.com/white-papers/why-and-what-do-companies-outsource
Vivian Hunt, Lareina Yee, Sara Prince, and Sundiatu Dixon-Fyle (2018). Delivering through diversity. Retrieved from https://www.mckinsey.com/business-functions/organization/our-insights/delivering-through-diversity?zd_source=hrt&zd_campaign=2153&zd_term=camilogomez
Comprehensive guide to payroll salary compensation, benefits, and allowances in the Philippines. Retrieved from
outsourceaccelerator.com/guide/comprehensive-guide-payroll-salary-compensation-benefits-allowances-philippines/
Outsourcing Examples: Companies That Outsourced to Fuel Growth. Retrieved from https://biz30.timedoctor.com/outsourcing-examples/
References
A Brief History of Outsourcing. Retrieved from https://scm.ncsu.edu/scm-articles/article/a-brief-history-of-outsourcing
Why and What Do Companies Outsource? The State of Software Development Outsourcing for 2019. Retrieved from https://intetics.com/white-papers/why-and-what-do-companies-outsource
Vivian Hunt, Lareina Yee, Sara Prince, and Sundiatu Dixon-Fyle (2018). Delivering through diversity. Retrieved from https://www.mckinsey.com/business-functions/organization/our-insights/delivering-through-diversity?zd_source=hrt&zd_campaign=2153&zd_term=camilogomez
Comprehensive guide to payroll salary compensation, benefits, and allowances in the Philippines. Retrieved from
outsourceaccelerator.com/guide/comprehensive-guide-payroll-salary-compensation-benefits-allowances-philippines/
Outsourcing Examples: Companies That Outsourced to Fuel Growth. Retrieved from https://biz30.timedoctor.com/outsourcing-examples/
References
A Brief History of Outsourcing. Retrieved from https://scm.ncsu.edu/scm-articles/article/a-brief-history-of-outsourcing
Why and What Do Companies Outsource? The State of Software Development Outsourcing for 2019. Retrieved from https://intetics.com/white-papers/why-and-what-do-companies-outsource
Vivian Hunt, Lareina Yee, Sara Prince, and Sundiatu Dixon-Fyle (2018). Delivering through diversity. Retrieved from https://www.mckinsey.com/business-functions/organization/our-insights/delivering-through-diversity?zd_source=hrt&zd_campaign=2153&zd_term=camilogomez
Comprehensive guide to payroll salary compensation, benefits, and allowances in the Philippines. Retrieved from
outsourceaccelerator.com/guide/comprehensive-guide-payroll-salary-compensation-benefits-allowances-philippines/
Outsourcing Examples: Companies That Outsourced to Fuel Growth. Retrieved from https://biz30.timedoctor.com/outsourcing-examples/
References
A Brief History of Outsourcing. Retrieved from https://scm.ncsu.edu/scm-articles/article/a-brief-history-of-outsourcing
Why and What Do Companies Outsource? The State of Software Development Outsourcing for 2019. Retrieved from https://intetics.com/white-papers/why-and-what-do-companies-outsource
Vivian Hunt, Lareina Yee, Sara Prince, and Sundiatu Dixon-Fyle (2018). Delivering through diversity. Retrieved from https://www.mckinsey.com/business-functions/organization/our-insights/delivering-through-diversity?zd_source=hrt&zd_campaign=2153&zd_term=camilogomez
Comprehensive guide to payroll salary compensation, benefits, and allowances in the Philippines. Retrieved from
outsourceaccelerator.com/guide/comprehensive-guide-payroll-salary-compensation-benefits-allowances-philippines/
Outsourcing Examples: Companies That Outsourced to Fuel Growth. Retrieved from https://biz30.timedoctor.com/outsourcing-examples/
References
A Brief History of Outsourcing. Retrieved from https://scm.ncsu.edu/scm-articles/article/a-brief-history-of-outsourcing
Why and What Do Companies Outsource? The State of Software Development Outsourcing for 2019. Retrieved from https://intetics.com/white-papers/why-and-what-do-companies-outsource
Vivian Hunt, Lareina Yee, Sara Prince, and Sundiatu Dixon-Fyle (2018). Delivering through diversity. Retrieved from https://www.mckinsey.com/business-functions/organization/our-insights/delivering-through-diversity?zd_source=hrt&zd_campaign=2153&zd_term=camilogomez
Comprehensive guide to payroll salary compensation, benefits, and allowances in the Philippines. Retrieved from
outsourceaccelerator.com/guide/comprehensive-guide-payroll-salary-compensation-benefits-allowances-philippines/
Outsourcing Examples: Companies That Outsourced to Fuel Growth. Retrieved from https://biz30.timedoctor.com/outsourcing-examples/
References
A Brief History of Outsourcing. Retrieved from https://scm.ncsu.edu/scm-articles/article/a-brief-history-of-outsourcing
Why and What Do Companies Outsource? The State of Software Development Outsourcing for 2019. Retrieved from https://intetics.com/white-papers/why-and-what-do-companies-outsource
Vivian Hunt, Lareina Yee, Sara Prince, and Sundiatu Dixon-Fyle (2018). Delivering through diversity. Retrieved from https://www.mckinsey.com/business-functions/organization/our-insights/delivering-through-diversity?zd_source=hrt&zd_campaign=2153&zd_term=camilogomez
Comprehensive guide to payroll salary compensation, benefits, and allowances in the Philippines. Retrieved from
outsourceaccelerator.com/guide/comprehensive-guide-payroll-salary-compensation-benefits-allowances-philippines/
Outsourcing Examples: Companies That Outsourced to Fuel Growth. Retrieved from https://biz30.timedoctor.com/outsourcing-examples/
References
A Brief History of Outsourcing. Retrieved from https://scm.ncsu.edu/scm-articles/article/a-brief-history-of-outsourcing
Why and What Do Companies Outsource? The State of Software Development Outsourcing for 2019. Retrieved from https://intetics.com/white-papers/why-and-what-do-companies-outsource
Vivian Hunt, Lareina Yee, Sara Prince, and Sundiatu Dixon-Fyle (2018). Delivering through diversity. Retrieved from https://www.mckinsey.com/business-functions/organization/our-insights/delivering-through-diversity?zd_source=hrt&zd_campaign=2153&zd_term=camilogomez
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