Benefits of Outsourcing


Since the phenomenon called globalization took place, the international and local business scenery has never been the same. The world has become a smaller place and traditional business practices face a different playing field. As the market became competitive, a lot of goods have become accessible via the world wide web or the internet. E-commerce became so popular since manufacturers and wholesalers can sell their products direct to consumers cutting the cost of retail significantly. Services and transactions have also been made available on the internet, in fact, almost everything can be done online now making it possible for almost every business to be done remotely.

Several countries' economies also changed over the past decades with the US as no exemption. No matter what side of the political spectrum you stand on it is easy to see the business climate in the United States has changed drastically in the past decade. Changes to health care and minimum wage laws have created a climate of uncertainty in the United States. It is also becoming a numbers game in which businesses with 50 or 100 employees may have a completely different rule book than a smaller business.

All these factors have added to the ongoing challenges of businesses who aim to deliver the best products at the lowest cost possible. The fierce competition in the market is all focused on the same goal. This is where outsourcing shines the most. Outsourcing has provided businesses around the globe regardless of size, an option to significantly cut the cost of its operation. Cost per employee in an Outsource company is significantly lower than hiring someone local within the United States, Canada, UK, Europe, Australia and other countries that have a high standard and cost of living. It also allows the business to forecast the cost of its operations over time since outsourcing companies have fixed rates that escalate very little over the years.


It takes a considerable amount of investment to put up a facility, purchase the necessary equipment, hardware, software, and recruit, train and employ people for a business. The maintenance and management of all these assets is also very costly and challenging. Outsourcing covers and addresses all these concerns. The best thing is that everything is scalable according to the needs of the business. A business is given the option to start from a single outsourced employee to several hundred even thousands.

Employee management maintaining their short term and long term benefits are also challenging factors in running a business. The uncertainty in all business ventures is also a never ending concern. With outsourcing, businesses need not worry on retrenchment, retirement and other legally mandated benefits as the personnel working for the business is the sole responsibility of the outsourcing company.

Risk is also significantly reduced in terms of capital investment as outsourcing covers all aspects and the business only needs to pay the agreed upon rate per employee per month depending on the contract. All required maintenance and management are also transitioned to the outsourcing company allowing a business to focus more on improving its products and services, innovating and creating new ideas into reality and pursue other worthy endeavors that will make a company grow exponentially.


Outsourcing over the past few decades has offered developing countries an opportunity to earn a decent and competitive salary that promotes a higher standard of living. It also opened awareness and provided innovative ideas on the culture, practices and technology of highly developed countries across the globe. Contrary to some notions and belief, outsourcing has helped sustain and stabilize the economy of the countries it supports. The outsourced workforce maintains the same if not improves the level of service and expectations of the business. Companies like Ford, General Motors, IBM and countless others have benefited greatly in outsourcing. Highly developed countries can now focus on innovating new solutions, new products, new discoveries and transition their basic business support, operations, repetitive processes and standard production to outsourcing companies.

Truly the collaboration in a global scale which was made possible by outsourcing is amazing. The benefits are mutual and equally nurturing. The future and possibilities of outsourcing is limitless, the growth from the 90s to the present is beyond what was expected. More countries now are involved thus making outsourcing a global experience. To sum it all up the immediate benefit of Outsourcing is to save significant cost in operating a business. Next is to make doing business easy for both the customers and the business owners. Lastly, outsourcing has helped positively change the life of countless people across the globe. The opportunities are limitless and now without boundaries. This is the long-term benefit that has the most impact globally. Interested in what outsourcing can do for your business? Don't hesitate to get in touch with us through our Contact us options.

Get Quote