11 Reasons Why More and More Companies Outsource


Outsourcing, or offshore staffing, is hiring people from other locations to reduce total wage costs with the same expected results for specific services. Today, it is an essential business plan, as small to large businesses benefit from outsourcing.

It has been a common practice since the 80s, and countries like China, Philippines, and India has been the top countries where companies outsource their staff.

Most companies nowadays are taking advantages of outsourcing for many reasons. Here are the reasons:


Reduced cost

reduced cost in outsourcing

Offshore outsourcing helps reduce the total wage and labour costs, most especially for small-medium enterprises who want to have a team with years of experience in certain fields. Depending on the location, the number of staff you need and the expertise, the range of savings varies from 30% to 80%.


Quick turnaround of recruitment

turaround of recruitment

The recruitment process in outsourcing is made easier. In fact, most BPOs include a face-to-face interview with the partner company via video call for them to assess the prospective candidate for the services they need. The usual turnaround of the hiring process through outsourcing is around 2-4 weeks, but would still depend on the preferred expertise the client needs.



employee versatility

Outsourcing staff on a different time zone leaves you two choices: Let them work with the same working hours that you have, or you could have them work on their time zone to have more flexibility on your operations.

Most of the time, outsourced professionals don’t mind working on different time zones, and it makes communication clearer when teams communicate their concerns early on, most especially if projects have a critical deadline with intricate processes.


Core Business Focus

business focus

Taking advantage of offshore outsourcing allows you to have time to be more involved in internal company affairs. While your outsourced team is doing the operations side for your business, you can now focus more on building a better business approach, strategy, as well as strengthening internal management to better achieve your business goals, guided by your company’s core values.


Brand Strengthening

brand strengthening

Outsourcing services in other locations allow your brand to have not only a global exposure since it would be introduced to a foreign place, but this is a chance for you to utilise your other resources to boost your brand’s presence in the channel of your choice.



employee skillset

Looking for an employee with stellar expertise and solid years of experience, most importantly for positions that are crucial for the company’s growth is not really an easy task. Outsourcing allows you to take a breather since they will find the perfect candidate for you.


Gaining Internal Team

internal team

Outsourcing your staff allows you to gain global employees that help a lot in bridging the gap between different races, gender, and religion. You’ll never know when you can find an outsourced staff that has skills for your managerial post at your head office, right?


Low Infrastructure Expenditures

low expenditures

When you expand your team, it automatically sums up into increasing your physical resources as well, such as the office space, computers, and equipment. Not to mention the state-of-the-art IT facility to help your new teamwork efficiently. But, when you outsource, additional costs like this will not appear in your financial statements.


Fight staff shortage

prevent staff shortage

Since there has been a rampant decrease in skilled professionals in western countries, companies from those locations solely rely on outsourcing in helping them find the right professionals for the work they need.


Smoother Adaptation to Technologies

technology adaptation

Outsourcing lets companies and BPOs use technology for easy communication between the employer and the employee, and this open us to the world of innovative technologies that are adaptable.


Better Risk Management

better risk management

Partnering with an outsourcing company frees you from worrying about unexpected circumstances since they already have a backup plan readily available for your business. So in case such instances occur, your business will not be easily affected.


Wrap up


Indeed, outsourcing has been an integral part of a company’s business model, it is not just about reducing costs anymore.  They associate business success with the help of outsourcing. Despite some disadvantages, more and more companies, small to large enterprises invest in their teams through outsourcing or offshore staffing.


Overall, outsourcing hits two birds with one stone; one, it solves the problem of finding the professionals your business needs, and two, it provides jobs for people overseas and brings about brand awareness. Consider outsourcing jobs and find the best people for the job.


Over to you

What are your thoughts about outsourcing? Do you think it’s beneficial to your business? How was your experience? Let us know in the comments.