If you’re in the business world, you’ve probably heard of the phrase, “Employees are a company’s greatest asset.” This adage is so popular because it’s true. Employees are critical to an organization’s success, and companies are always searching for ways to attract and retain the best talent they can find. And there lies the problem. Finding and recruiting the right talent isn’t easy, especially if you’re limiting your search locally. Sometimes you’ll land the perfect candidate for the role, but more often than not, finding someone with the right skills is like looking for a needle in a haystack. That’s why companies are turning to outsourcing to cast a wider net in their search for quality candidates.
Cost Reduction
Cutting costs may not be the only reason why companies outsource, but it is a significant factor. According to Deloitte’s 2020 Global Outsourcing Survey, cost reduction is once again the number one reason why businesses choose to outsource. Their 2018 survey had indicated a shift towards the implementation of cloud and robotic process automation (RPA) solutions, but due to the economic disruption caused by the COVID-19 outbreak, the focus is back on driving down costs.
“In the recent past, many people in the industry have stated that cost reduction is a secondary benefit behind other objectives, such as increasing agility or improving the quality of service. This year’s survey shows a sharp increase in the number of organizations giving priority to cost reduction, and in the face of a likely pandemic-induced global recession, this number will get higher,” Deloitte’s Miles Underwood and Mike Stoler said in the 2020 report.
Since the cost of living is relatively lower in other parts of the world, especially in Asia, this translates into lower salaries. By outsourcing aspects of their day-to-day operations overseas, companies can reduce their overhead costs while maintaining the same productivity level. It’s an excellent cost-effective solution for businesses that are striving for financial stability during a recession.
Level The Playing Field
Small business owners don’t have the resources that larger companies have. However, they can level the playing field by outsourcing. Since you’re not impeded by geographical restrictions, you will have access to the best talent from anywhere in the world. That includes experienced professionals who already have proven track records in their respective fields. This allows them to offer the same quality of products or services provided by larger companies.
Flexibility
The pandemic’s devastating impact on the economy will be felt for years, and as businesses continue to recover, the need for an agile workforce has become even more evident. Companies need to have the ability to scale up and down quickly as demands fluctuate in a changing business climate, and outsourcing gives business owners the staffing flexibility that doesn’t exist with in-house employees.
“Everyone wants more flexible and shorter contracts. Almost half of the lawyers we interviewed indicated that one of the most significant learnings for the future was to push for shorter and more flexible contracts – a theme that had wide support across both client and service provider interviewees,” the 2020 Deloitte report reads.
To ensure operational continuity and quick recovery from disruptions, companies need to have a workforce capable of adapting to changes, given that conditions can change at any moment.
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Security and Confidentiality Risk
The biggest potential disadvantage of outsourcing is the risk of data breach. Worrying about this is perfectly normal. There is definitely a risk that confidentiality may be compromised when you hand over sensitive data to remote employees who are based halfway across the globe.
Of course, the risk can be lessened if you conduct due diligence background checks before hiring someone. You can also take extra precautions and make your remote team sign non-disclosure agreements that prohibit the release of sensitive material.
Communication Gaps
This is another hurdle you will have to overcome if you outsource work overseas. You’re gaining access to a global talent pool of remote workers, but this also means that there will likely be issues in communication, especially if you’re outsourcing to an individual who lives in a country that speaks English as a second language. You have to take into account the grammar, accent, and pronunciation hindrances.
The time zone difference can also be problematic, especially if it involves a project requiring frequent communication between you and your remote team.
Some companies mix in-house and outsourced labor because they believe this approach can enhance their chances of gaining and sustaining a competitive edge. It’s a good strategy. By outsourcing, companies free up time for their in-house staff to focus on their core competencies. You can even mitigate most of the risks associated with outsourcing by partnering with an outsourcing company that can manage your offshore team for you.
“Working with an experienced outsourcing provider helps companies overcome productivity challenges, streamline operations and add additional resources that may be lacking in-house. From sales to recruitment to operations, outsourcing provides an unlimited amount of opportunities to help your business work smarter,” Kikis Pissarides, a Manager in the Business Process Solutions (BPS) Department of Deloitte Cyprus, said in an article on the relevancy of outsourcing in a post-COVID-19 environment.
That is option one. Option two is to do the recruiting yourself. It’s not that complicated, and we can help you if you have any questions.
Our go-to site is OnlineJobs.ph. With over a million profiles, the site has the largest database of Filipino virtual workers, so that’s an excellent place to start. And the rates are so affordable because of the lower cost of living in the Philippines. Just create an account, post your job ad, and see the resumes come in. You do have to upgrade to a paid subscription, though, if you want to reach out to the applicants. The free trial only lets you post ads and see the profile of the applicants. The paid plan is only for $69 a month, and you can cancel it once you’re done hiring.
* Disclosure: The link above is an affiliate link, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase. To find out more about our view on affiliate products, please see this page.
So that’s it. As the Covid-19 pandemic continues to cause widespread economic disruptions, perhaps it’s time to rethink how we do business and adapt to the changes.
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