“From Lee Kuan Yew – Former Prime Minister of Singapore, this quote is almost perfect for describing the role of outsourcing in the modern context. Outsourcing is one of the biggest global trends of this millennium.
As the director of Aumtec Solutions, Mr. Manish Singhal sums it up quite nicely, “Outsource to Outclass.” Outsourcing helps companies outclass their peers by making better use of time and talent pool and optimizing their money and time.
Outsourcing has begun initially with data entry and payroll, processing but has expanded to multiple domains, including almost everything in the basket from insurance claims to digital marketing to operation management.
What explains this trend?
Is it the access to multi-talented staff, or is it the reduced cost, or is it the operational excellence and management ease offered through outsourcing, which prompts companies to go for outsourcing. Well, it is a mixture of all the mentioned things.
Outsourcing, on the one hand, has proved to be a cost-reducing mechanism as outsourcing to countries like India is comparatively less costly; on the other hand, it has helped companies find great talent from the pool of resources from across the globe. For example, there is a sea of unexplored talent in the IT industry, which could only be explored by the outsourcing giants. It’s advantageous for both parties.
It gives you immense talent at your exposure, and second, it takes massive pressure off your back to do the strenuous and hectic jobs yourself.
Moreover, outsourcing allows you to sit back and access all the operations at the click of a mouse. Outsourcing also keeps you away from non-core issues like hiring and firing the staff and employee retention. So, to sum up, outsourcing has proved to be a boon for enterprises.
In the words of Larry Elder, “Outsourcing and globalization of manufacturing allow companies to reduce costs, benefits consumers with lower-cost goods and services, causes economic expansion that reduces unemployment, and increases productivity and job creation.” This explains the complete cycle of outsourcing, and it is all in all benefits for total economic growth worldwide and reducing the burden of poverty and unemployment.
We are outsourcing as a Necessity in the prevailing circumstances for business to survive!
The critics of outsourcing point out to many things like lack of quality control at times and incapability for some to find a reliable outsourcing partner etc. In contrast, those in favor of it tell these claims not real but situational for a few. For them, you can not necessarily find a good employee for a lifetime, even if you employ a team in house.
Similarly, you may not find a good team in one go, but that does not mean that you would never find one. Second, people should be a little cautious while deciding on a dedicated outsourcing team, and these issues could be handled.
Regarding the quality control as well, because everything has become online, it is effortless to control and monitor the team from the click of your mobile screen. Even after, there may be errors from the outsourcing team occasionally, but your internal team can also make errors at times as “to err is human” Adam and Eve erred, and that’s why life began on earth.
So for the people in favor of outsourcing, the critics are only spreading myths and unreal fears. They say the world’s future lies in globalization and outsourcing as it crosses the boundaries and brings humans closer to each other.
One more point raised by the critics recently is related to the changed labor laws in India, which meant a higher payout to the employees. To counter this, the proponents in favor say that the salaries have to increase even in the home country.
Second, it would be unfair to distribute the fruits of profit to only the owners, and instead, it is only just and fair on the part of humanity to spread the benefit to the employees to raise their living standards. So labor laws had to come.
The labor laws should not have been required to build the salary bars as people working on a pay 20 years back should get increased payment after 20 years.
Moreover, it’s still in the same proportion as earlier compared to the USA and the UK.
So, the persons in favor of outsourcing suggest that salary increment is a good step in ensuring balance and harmony. It will further help the companies get their work done more efficiently as it keeps their employees more secure and unworried.
In the current times of COVID-19 pandemic, when the world is going through a complete recession, outsourcing is considered as the only way out for business to survive.
Outsourcing would help entrepreneurs lower costs at this time of crisis and continue the task without stopping.
Peter Drucker, a known name in modern business, was perhaps the first to classify business tasks into front-end and back-end operations. According to him, a company should focus on only the front-end tasks.
The back-end operations and management should ideally be handed over to a company for whom it qualifies as a front-end activity. Later we came to know this process as outsourcing.
Since the concept was framed and acknowledged by business owners worldwide, its scope has grown by leaps and bounds.
50% of all CIOs feel that outsourcing is the future of business globally.
35% of small businesses have reported significant cost reduction and help through outsourcing smaller projects.
In simple words, outsourcing has emerged as a transformational trend for enterprises.
Outsourcing the non-core aspects of the business was the trend initially, which included data entry services, and much more. But the times are changing. We are witnessing complete operations of an enterprise being outsourced. So, the future lies with us and how the business plan to invest and make a good team.
For now, we can surely say that sky is the limit for outsourcing. You can outsource from small, simple data entry tasks to more complex and specialized works as quickly as having your tea.
Data Entry outsourcing is a revolution for organizations as it helps them save enormous time and money. Second, the importance of data management is unparalleled. Data Management as critical as sales itself because only proper data collection and management can help you in making sound business decisions needed for business growth and scalability.
For big companies, their data is like a big elephant, which takes workforce and resources and dedication to manage that. Therefore, outsourcing critical data entry and management services would help you enrich and extract useful business information from the pool of data and make wise decisions, which might include understanding customer behavior, new product launches, etc.
Data Entry is crucial for every business, be it insurance companies, accounting firms, pharmaceutical companies, legal enterprises, etc. Insurance companies can easily outsource their DATA ENTRY services for insurance claims processing.
It would save their time and put them in the driver’s seat. Similarly, pharmaceutical companies should outsource the medical records of data entry services to offshore companies. The same goes for legal firms.
The legal firms can also outsource audio and video transcription services to save their time and cost. Apart from data entry services, there are a set of activities that could be outsourced:
Digital Marketing Services
What are the Top Reasons for Outsourcing?
The reasons are plenty but listing out a few top reasons for outsourcing as suggested by global surveys:
% of Businesses Motivation for Outsourcing
59% Reduced costs
57% Increased focus on core activities
31% To ease the process
28% Access to the enormous talent pool
17% Better handling of business
17% For fast growth
These numbers stand as evidence to a simple fact- outsourcing eases life for owners and helps them grow their business. Outsourcing, done right, can give companies a competitive advantage.
Things to consider while outsourcing
Data Security: Data Security is crucial to any business, and one must ensure complete data security using the Non-Disclosure Agreement. This would legally bind the parties and ensure data privacy.
ISO certification: Yet another essential factor in determining your outsourcing partner is ISO certification. This would ensure quality management standards.
Free trial: One should always go for a free trial of the services before committing to an agency.
Dedicated Project Manager: This one is a must for having regular communication and a smooth process of work.
Secured payment: One must also ensure payment security by using secured channels like PayPal to build trust, especially at the beginning.
These are specific main ideas to have in mind before choosing an outsourcing agency. For any outsourcing requirement you may have, write to us at email@example.com.