What Type of Outsourcing Need Fits You?

Posted on Feb 15, 2016 by admin

Every businessman sees outsourcing as a channel for growth and as a means to reduce operational costs. While some companies do not necessarily need outsourcing help within the BPO industry, others may rely to service providers for the most part of their businesses. In this sense, outsourcing most business functions or operations to places where labor is much cheaper has been proven truly critical. There are several types of services that can be outsourced depending on the nature and size of the business involved. Here are the top services you can outsource.

  1.      Technology

Technology is one of the areas that businesses are competing over to gain market edge. Most businesses – especially electronic, software and website developments, network infrastructure and mobile telecommunications – are spending a lot to ensure their creative products remain relevant. This can only be achieved by coming up with innovative products that are up to date. The use of internet has enabled the expansion of businesses across and beyond geographical borders. Contracting another firm to carry out such services has seen companies build huge investments and profits. Moreover, this enables organizations to ease up operations and therefore employees can concentrate on their specific job niches and assignments.

  1.      Business development

This type of service incorporates both front and back office operations. Front office functions comprise of customer support, sales, marketing and technical consultancy while back office deals with purchase, billing, payroll and auditing roles. It has since become quite efficient to outsource these activities to firms that specialize in such expertise.

Different US companies outsource most of their office functions to firms in Canada, China and other parts of Asia. One of the fields that has experienced massive offshore activities is the manufacturing sector.

The high number of skilled workers and availability of cheap labor in other countries has contributed to the growth of outsourcing destinations. For instance, Apple contracts several Chinese companies to assemble its iPhones. This Corporation builds huge investments and make billions of profits out of outsourcing. Companies with high sales projections are now realizing that in order to do business with the giants, they have to move their manufacturing activities to other countries in order to reduce shipping and transportation costs.

  1.      Knowledge and intellectual property

Most businessmen know that they cannot do without knowledge and preserve it at all costs. For companies in pharmaceuticals, research and development, SEO and content writing, the intellectual property they own is of crucial importance to business sustainability. Since this requires utmost independence on the part of the provider, most opt to build R&D departments while some view outsourcing as the best way to go. However these services are short term and are only required when need arises. Therefore, it is a preferred option to outsource from companies that specialize in delivering such services.

Different businesses based on their nature of operations and products have different preferences on the type of outsourcing to employ. It is only wise for a business to evaluate the essence rather than engage blindly in the practice. So what service type do you actually need?

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