Outsourcing is an emerging strategy used by many organizations today to keep their business operations efficient and profitable.
Outsourcing allows companies to assign certain business operations to outsourcing firms rather than accomplishing it internally, thereby, reducing manpower expenses and other operational costs without sacrificing operational efficiencies.
However, despite its obvious benefits, there are still some companies that do not yet fully appreciate the advantages outsourcing brings to a business.
In fact, they often look at the practice as an added expense rather than an opportunity to cut costs.
Prople, Inc., one of the leading business outsourcing companies in the country, lists some misconceptions about outsourcing and what are the truths behind these myths.
1. Outsourcing can only reduce costs.
Truth be told, outsourcing primarily reduces costs. However, this is only one of its many benefits. Outsourcing also helps increase productivity because the personnel assigned to the task is usually highly trained for the job. This means that less or no training is needed for the task to be done. In the long run, it increases efficiency and productivity because it allows companies to focus on their core business instead of spending time, effort, resources and manpower on these processes.”
2. It saves money but the quality of the services are at risk back
When a job is outsourced, it is assigned to a group of people with the prerequisite skills set. This means that the people working on the job are experts who know what needs to be done, thus, reducing the chances of poor work quality.
3. Less management control over the specific task and results
Even if the job is outsourced, it means that clients have no control of the output or the outsourced staff. It is a standard among BPO firms to guarantee timely and specific deliverables ensuring that the integrity of the output is maintained and that the staff assigned to perform at excellent levels at all times. Companies that outsource usually interface regularly to make sure that the quality of the work is sustained.
4. SMEs cannot benefit from outsourcing
While outsourcing seems to be done mostly by large companies, what many don’t realize is that small and medium-sized enterprises (SMEs) can benefit better from outsourcing. Hiring people will mean that resources are allocated for salaries, benefits, and other mandatory government payments. Outsourcing takes away the need to pay the required salaries as the fees paid to an outsourcing firm are based on a specific set of deliverables. Once the task is completed, the costs discontinue
5. Outsourcing causes loss of jobs
BPOs cut down the workloads of an enterprise by accepting minor tasks, like for payroll and tax services among others. Instead of hiring people to work on these, a company may open other positions that will help them focus more on their business core. Furthermore, outsourcing opens up employment opportunities for people who prefer working on a per project basis.
Prople Inc. was established to assist local enterprises of any size. As one of the leading business processes outsourcing companies, it delivers proven, best-in-class methodologies and solutions to ensure their customers’ business stability and progress.
It is staffed by value-driven employees, such as accountants, auditors, project managers, business analysts, engineers and IT professionals, who are rich in adequate professional experiences that may help companies realize true benefits of outsourcing.
Overall, it aims to produce practical outputs including increase of efficiency, immediate start on new projects, control of capital costs, reduction of labor costs, maintaining the focus on the business core and preventing risks that threaten the success of enterprises, and these are what Prople, Inc. desires to provide.