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Philippines Offshoring - Why Should a Company Consider Outsourcing?

Sometimes, carrying out certain business operations in-house becomes daunting and cost-intensive. Also, lack of expertise in certain segments of an organization (e.g. information technology) can hinder business growth significantly. For these and other reasons, Philippines offshoring services are increasingly sought after by companies of various sizes. In considering whether outsourcing is good for your organization or not, a quick look at the top benefits of outsourcing may reveal certain truths about this business strategy;

1. Concentrating on the Core Activities of an Organization
When a company steps into its growth peak periods, its back office functions will also grow. Consequently, the bulk of an organization’s human and material resources are concentrated on the expansion, while the core activities of the company are left unattended to.  Interestingly, the success of an organization may be largely attributed to its core activities.

Therefore, when a company decides to outsource some of its expansion functions, it will help them re-distribute both human and material resources, so that no aspect of the organization’s functions is relegated to the background. Philippines offshoring services cover business expansion operations as well. 

2. Contractual Certainty
Contractual certainty is one of the reasons why companies embark on outsourcing. You will have peace of mind knowing that a contractual relationship is existing between your company and the outsource provider. On the other hand, you can only discipline or fire an in-house employee for poor performance, while the company is left to bear the loss resulting from employee’s laxity, negligence or total incompetence. Therefore, outsourcing is a mutually beneficial contract. Each party to the contract is adequately compensated in the event of breach of agreement. The terms of the contract are legally binding on the parties. 

3. Low Overhead
Certain back office functions incur high overhead costs. Sometimes, it is more cost-effective to outsource such office functions.  For instance, if a company experiences growth that requires office space expansion, it may cost less to hire offshore employees than paying for additional office space.

3. Staffing Flexibility
Using outsourcing, a company’s functions that have cyclical or seasonal demands can usher in extra resources when it is needful, and they are disbanded afterwards. A typical example is the financial/accounting department that requires more hands during auditing and tax preparation periods. Outsourcing these operations at such times could provide extra human resources temporarily and affordably. 

Other benefits of Philippines offshoring services include business risk sharing,  creation of leisure time (especially for a sole proprietor), tax incentives, significant cost saving, access to large talent pool, reduced time to market and more. 

A company should be thorough in searching and selecting a vendor for its business functions outsourcing. Careless selection can result in loss instead of benefits.

Daven Michaels is an award-winning outsourcer and author of  the book, ‘Outsource This!’ Daven has been honored more than  any other individual or outsourcing organization. You can get  more information on outsourcing by visiting http://www.123Employee.com

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