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Outsource Philippines: Should a Company Engage External Employees for Its Functions?

Engaging external employees is not a new organizational trend. Outsourcing has been in practice for decades, but has grown leaps and bounds in recent time. Outsource Philippines services include diverse business functions such as accounting, typing/transcription, human resource management, SEO marketing, content creation and management, sales and marketing, IT functions and more.

Here are the top reasons why companies engage external employees;

Keeping labor cost low
A company keeps its labor cost low by taking advantage of external employees within the country or offshore. Interestingly, offshore outsourcing has taken over today’s business environment, with Philippine and India taking the lead. By lowering labor cost, the overall running cost of a company is reduced, and surplus funds are ploughed back to more critical business operations. Low cost is the major driving force behind offshore outsourcing.

Wedging against Unstable Political and Business Climate
It is logical for a company’s hiring decision to be partly influenced by political interruptions in business activities, including fears about increased taxes and more unfavorable regulations. So, in addition to keeping labor cost low, organizations are also prospecting into the years and even decades ahead as they use outsourcing increasingly to hedge against possible political upheavals that may obstruct business flow. 

Gaining Global Audience
Also, an organization leverages outsourcing to build global fame as it generates global audience. By contracting its business promotion to external experts who employ internet-based business promotion techniques, a company can attract global audience, and achieve global influence as well. Social media marketing and video marketing are internet-based promotional tools for gaining wider audience. Also, content marketing such as e-book helps to foster global fame. However, an expert’s knowledge and experience is required to achieve great result with these tools. Outsource Philippines services include global audience generation.

Time to Market is Accelerated
“The first to enter the market usually claims the largest share of the market”. This enduring business maxim points to another financial benefit from choosing outsourcing. 

A company achieves accelerated time to market by choosing to outsource some of its business functions. The reason is simple; the outsource services vendors are sufficiently trained and experienced experts in their various outsourcing fields. Therefore, task performance speed is enhanced. Consequently, a company is able to introduce a new product to the market faster than using in-house employees. This also provides a competitive advantage for an organization.  
Other reasons why companies engage external employees include risk sharing benefit, access to renowned experts, tax benefits, making up for limited in-house capacity and more. Employing the best possible vendor selection criteria helps to reap the full rewards from outsourcing. Also, performance measurement is critical in outsourcing. From the beginning and throughout the lifetime of the contract, proper performance measurement is necessary.

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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