What is business process outsourcing? What benefit will business process outsourcing have on your small business? Is it profitable and cost efficient for a small business to outsource its business processes? Well, I will suggest you read on to find the answers you seek.
Business process outsourcing is an operational strategy that cannot be appreciated by its mere saying; until it is being put to full action. Advising an entrepreneur or small business owner on the need to adopt outsourcing as an operational strategy might turn out to be a waste of time until you demonstrate its use, advantage and cost effectiveness.
To fully appreciate the concept of business process outsourcing, imagine you need a business process to be finished. You hire a professional in your country that charges about a hundred dollars to get the job done. This can prove to be too expensive for your company especially if your business is situated in the United States, Canada or Europe.
Now what if you can get the job done, with the same quality made by a person with the same qualifications as the person you hired before, to do the particular business process at half the price? Will you not be interested?
Well, for a startup entrepreneur who is running a business on a shoestring budget; getting a job done with same quality but at half price can prove to be very attractive. However, the ultimate question now will be:
How can you be able to find this person with the same qualification that charges half the price your professional charges?
The answer to this question is to outsource your business process in developing countries full of talented professionals.
The reason I advice you outsource your business process to developing countries is because these countries have lower minimum salary rates; therefore, outsourcing to such countries can prove to be a cheaper alternative. Not only that; if your company’s operations is burdened with heavy workloads and high overhead, outsourcing can help your company ease the burden. This will mean more efficiency and productivity for your company while saving a lot of money in the process.
By outsourcing your business process, you can be sure to get the job done at half the price. Hiring professionals from developing countries such as India, China, Nigeria and Philippines can provide cheap labor compared to hiring professionals in the United States.
The increased patronage experienced by outsourcing companies has transformed outsourcing firms to become a major industry player in developing countries. Governments of developing countries are welcoming outsourcing companies to provide top quality jobs for their professionals with high paying salary.
Although the salary you will give to outsourcing companies in other countries may be considered high; in the United States it will be considered to be very low because of the exchange rate, cost of living and the minimum wage in developing countries is far lower than you can imagine.
Outsourcing business processes to other countries will also mean saving a lot of money on company insurance, social security payments and other benefits that you will be required to pay for if you hire a regular employee in your company to do the job.
As you can see, the main advantage of outsourcing your business process is that you will be providing your company with cheap labor and at the same time quality and professionally done jobs. The bottom line for outsourcing is saving a lot of money for your company.
So, if you are looking for a way to get quality service with cheap labor for your company, you can consider looking outside your country for outsourcing companies that can tailor your needs for your company.
However, before hiring a particular outsourcing company, you have to make sure that the quality of their work meets your company’s standards. Outsourcing companies are now providing ways for you to evaluate their work first before you hire them. Because of this, you can be sure that you will be getting the best outsourcing company to get your business process done.
As a final note, I want you to always remember that outsourcing is not for everybody. As an entrepreneur, it’s up to you to determine if your company should outsource its business process or not. If you think your company can handle it in-house, you should keep the work in your company.
But if your business operations prove to be very cumbersome and expensive, you should consider outsourcing it. So, instead of hiring additional regular employees in your company, you can outsource your business process and save a lot of money.