Outsourcing Can Do Much More Than Just Cut Costs

Companies that successfully create and sustain value year after year are rare. While a lot of companies attempt to, studies show that only one in 10 businesses achieved sustainable and profitable growth. There is only one activity that separates the winners from the rest of the pack: they are more innovative in their use of capability sourcing than their competitors.

Outsourcing specific tasks is a popular method for cutting company costs. In fact, reducing or controlling costs was cited as the number one reason to outsource among companies in a 2014 survey conducted by the Statistic Brain Research Institute. Forty-four percent of companies surveyed indicated that outsourcing was utilized as a means for minimizing costs. Cutting costs is certainly important. Research has shown that leading companies use outsourcing to build below five strategic capabilities.

1. Global talent.

One factor that adversely affects a company’s ability to grow in emerging markets particularly is the shortage of talents. Outsourcing is a major way to access global talent.

2. Building value-capturing and less risky partnerships.

Even with the increase of sourcing risks, many companies have continued to manage their sourcing relationships, and effectively reducing the risks as they do so. They have always devised a way to exert control. Companies simply regard their external relations as strategic partners and tightly integrate them with their overseas subsidiaries or domestic operations. In addition to these sourcing safeguards, the company also continually monitors its factories overseas to ensure stable quality management systems. You eliminate the risk of a quality issue by limiting potential problems and acting quickly when one occurs to prevent it from happening again.

3. New local market opportunities.

All a company needs to do as new markets emerge, is to find ways to establish a presence ahead of their competitors. A good start would be by making large-scale offshoring investments in key sectors such as manufacturing and sales. You may also want to partner with key local institutions, government organizations, and companies.

4. Move products into the market faster, boost innovation.

If you are into consumer products, it is important that your products hit the market ahead of your competitors. This is important in a rapidly changing market.

5. Disruption of traditional business models.

You could decide as a manufacturer to spin-off your contract manufacturing operations, outsourcing everything you have a harder time with, to countries that are more favorable in production and human capital. You stand a great chance of using capability sourcing to grow your business and gain a significant market share.

BPO Call Center Philippines is a reliable offshore outsourcing partner with the experience of providing professional customer support services for decades. Learn firsthand how our professional customer support services will enhance your business. Get in touch with us and we will come up with the best solution for you.