Outsourcing is a practice that has a reasonably controversial reputation, and the word can sometimes carry a negative connotation. It has become equated with stingy businesses who want to exploit workers by hiring as many as possible while paying as little as possible. Though this may be true for some companies, working with firms such as Outsource Plug ensures that your virtual assistants will be paid above market rates and treated with dignity and respect. What many of the critics fail to take into account is that outsourcing isn’t a fancy word for ‘job cuts’; it’s become an essential part of modern businesses. And while some criticisms are indeed legitimate, they are only examples of outsourcing implemented poorly, and not definitive proof that outsourcing is a harmful practice. Ultimately what these critics demonstrate, more than anything else, how little they understand about outsourcing.
What Is Outsourcing?
The word ‘outsourcing’ is often used interchangeably, erroneously so, with the word ‘offshoring.’ ‘Offshoring’ means that a company’s labor is conducted in another country, but employees or contractors of that company are still performing the work. Conversely, ‘onshoring’ means the labor is conducted domestically but in a secondary location. ‘Outsourcing’ is when a company decides to work through a third party, such as freelance workers or an outsourcing company, to find and hire talent outside of their business. This can be done either domestically or internationally.
Traditionally, outsourcing is most common in the technological and manufacturing fields, but businesses from various fields have been known to outsource labor for their call centers and online customer support services. The practice is prevalent yet often criticized and can even harm a company’s image if not executed correctly. When the right procedures are implemented, outsourcing’s upside and longevity are long-lasting, allowing companies to reallocate funds and focus on growth in other business aspects.
The biggest draw to outsourcing is it significantly decreases costs. Not only do companies pay lower wages when they outsource labor, but they also don’t need to worry about offering benefits packages. Having labor overseas is especially useful for growing businesses whose budgets need to maximize their ROI. It allows them to dive into foreign markets and establish themselves globally. This international presence offers growth opportunities and an undeniable advantage over their competitors. When a business opts to align with Outsourcing firms such as Outsource Plug, rather than attempting offshoring themselves, they will already have connections to fluent people in other languages and are familiar with the cultures, offer insight into market trends through both organic observation and years of established BPO metrics.
The second most significant benefit to outsourcing labor is that less time is wasted on tasks that your higher-paid team can delegate to your virtual assistants who can complete the same quality work for a fraction of the cost. Virtual assistants can handle a wide variety of tasks. The most common that we’ve seen is administrative or secretarial duties such as deleting spam emails, online chat support, writing meeting minutes, and proofreading essential documents, to name a few. Many of our clients also utilize the higher-end talent that would cost a fortune in major USA markets such as San Francisco, San Jose, Los Angeles, and New York. A few examples of higher-end talent: content creation, coding, web design, creating/managing social media accounts, and video editing. Using a reliable and capable outsourcing company means that outsourced workers are screened for skill level before hiring. Business owners won’t need to spend time learning programming languages or editing software, and knowing that these tasks are delegated to capable hands makes it easier to implement their growth strategies in confidence.
Companies can outsource entire HR departments. There are numerous benefits for a business of any size, but smaller ones should consider this alternative, primarily when you are operating on tight budgets. Having a competent HR department is something all growing businesses will eventually need, but not every company can afford one. Using an outsourcing company, smaller businesses with even smaller budgets can establish one without exceeding their financial limits. A growing company will also need to concern itself more with bringing in new talent. An outsourced HR department makes it possible for scaling company leaders to focus on the business itself without devoting too many resources to the onboarding and training process. Having an HR department also means they will have access to legal advice and people keeping track of important tax documents.
It allows for the concern as mentioned earlier of benefits packages to be addressed differently. Imagine a small company creating a local presence, one that isn’t ready to attempt expanding overseas. As it grows domestically, it will be harder for the company to justify its employees not offering a benefits package. By going through an outsource company to create its HR department, the small company can cut down on expenses that they otherwise need to put towards their employee benefits packages.
A Simple Process
Outsourcing talent can sound like an intimidating endeavor, but it doesn’t need to be. Working with an experienced outsourcing company removes the confusion and the headache. To learn more about how outsourcing can help you grow your business, visit our website. If you’re ready to take your place to the next level using premium outsourced talent, contact us today. You can trust that your business is in good hands when you use Outsource Plug.