Outsourcing Benefits For Beginning Businesses – Filipino Virtual Assistant
The practice of using third-party or outside firms to handle work usually performed within a company is called outsourcing, and it’s a familiar concept to many entrepreneurs. Small companies often outsource many important functions such as payroll processing and distribution, mainly because they lack the manpower to do so. Major companies turn to outsourcing to cut costs.
Since the year 2006, the Business Process Outsourcing (BPO) industry has grown 46% annually. Outsourcing in the Philippines has become a godsend for both ends. A Filipino web developer is now assured a stable job by signing on to an outsourcing company. On the other side, the conglomerate that hires that outsourcing company is also assured a top-quality webpage for their company.
For new enterprises, outsourcing could be your solution to launching your business successfully. Here are a couple of reasons why.
Controlling Capital Costs
Cost-cutting is one of the major reasons companies outsource. With outsourcing, fixed costs become variable costs. A big percentage of capital for investment can be redirected, allowing you to eliminate large costs early on in your business. Outsourcing also allows you to place major capital investments to revenue-producing activities.
Many outsourcing firms have the resources and the manpower to start a project immediately. In-house project handling might entail you having to hire the right people, train them, and provide all the materials they need. This process takes time, and – as those familiar with business know – time is something you cannot afford to waste.
Focus On Your Core
Back-office operations are not only complicated; they’re time-consuming. As your company grows, so will your back-office operations. This expansion could consume both human and financial resources, usually at the expense of your core functions.
Always remember that every business has limited resources, and every manager has limited time and attention. By outsourcing the activities not related to your core business, you and your employees can refocus your attention to the truly important matters.
What Labor Cost?
As mentioned earlier, hiring and training staff for short-term projects can be very expensive and time-consuming. Menial tasks like data entry or website design take up the time and energy of your employees. Those hired specifically to perform those functions will need their own deskspace, whereas outsourcing companies in Southeast-Asian countries such as the Philippines have their own place to operate. Outsourcing reduces the need to invest in infrastructure and excess labor.
It also gives you a round-the-clock business opportunities. For example, many companies based in New York could take advantage of the 12-hour difference between them and the Philippines. By hiring outsourcing companies which are not on your timezone, you can be assured that there are people working on your project while you’re sleeping.
Every business is not without its risks. Trends come and go. Markets, government regulation, financial conditions, and even technologies change rapidly. Outsourcing companies often assume control of these risks, leaving you free to worry about other things. Good outsourcing providers are generally better-equipped at deciding how to avoid risk in their areas of expertise.
For businesses just starting out, outsourcing provides a good way to cut costs and reduce risks. Many outsourcing companies in the Philippines have a wide range of employees, such as a Filipino virtual assistant or a Filipino SEO specialist. This gives you the advantage of hiring just one company for multiple functions.