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Outsourcing is a business strategy that involves hiring team member(s) outside of your organisation to complete tasks that support your local teams in whatever capacity is required. Outsourcing and offshoring can be used interchangeably. Where outsourcing means hiring teams outside of your organisation anywhere in the world, this could be down the street or in another country, offshoring means hiring teams outside of your country specifically.
There are many different kinds of outsourcing models and what may work for your business may not necessarily be the right model for another. That is why it is imperative that you carefully choose the right outsourcing provider who meets your business needs. Diving into all aspects of their operations will help understand whether investing in a particular outsourcing partner is the right move… or not.
To help you understand the key differences, the most common types of outsourcing models are:
Outsourcing has the ability to transform businesses but not everyone wants to deal with time zone differences, language barriers, global travel expenses and cultural expectations. Onshore outsourcing solutions are great for businesses who want to access the many benefits of outsourcing but do so by establishing teams or staff in the US.
From humble beginnings, offshore outsourcing solutions have established themselves as one of the business world’s most exciting opportunities thanks to their ability to reduce costs and improve efficiencies. Offshore outsourcing providers can operate large networks of outsourced teams in countries such as the Philippines, which is rightly acclaimed as one of the world’s top outsourcing destinations due to low labour costs, high literacy rates and first-class infrastructure.
Whether it be rising labour costs, talent shortages, or soaring rents, outsourcing allows businesses to stay competitive by connecting them with professional and highly qualified staff from all over the world who can support their local teams in whatever capacity they require.
The main advantages of outsourcing include:
Outsourcing is a global approach to recruitment that opens up a talent pool for your business that can be much larger than what is available locally. You may not even realise the skillsets you are missing out on by limiting your options to the candidates in your local vicinity. It allows businesses to hire people with diverse backgrounds, experience and education. This larger pool gives organisations the best opportunity to find the right people to help take a business to the next level.
Keeping an organisation running smoothly is a full-time job. Especially when it comes down to the ultimate balance of controlling costs without jeopardising quality. Leaders are constantly on the lookout for ways to achieve this perfect medium.
For some, the solution comes in the form of outsourcing and when you outsource to a low-cost economy like the Philippines, cost efficiencies are a major benefit. With the Philippines securing its place as one of the fastest-growing economies in Southeast Asia, it’s no wonder organisations globally are turning to outsourcing solutions. In the Philippines alone, the outsourcing industry is worth AU $38.7 billion and is anticipated to grow 6% in 2022 alone.
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