Changing the World With Top Outsourcing Benefits

As an offshoot of Adam Smith’s ‘competitive advantage’ theory in the 1700’s, outsourcing has gained popularity and has been a great opportunity for companies and workers alike through the years. Before knowing the different outsourcing benefits, let me define outsourcing first. This business tactic is simply the process of getting resources or human resources outside the company or outside the country of location of a certain company.

In response to their varied needs, different companies hold different reasons for outsourcing. Internet marketing companies and manufacturing companies, who implement cost-cutting strategies, are the usual patrons of this concept. Outsourcing works for manufacturing companies whenever they need to look for countries that could provide them with the raw materials that they need at low cost. From such practice, they are able to gain more profit without diminishing their budget for materials. Meanwhile, web publishing or internet marketing companies are in search for cheap labor as they hire qualified individuals across nations for their job openings.

Cheaper wage is one of the outsourcing benefits for the employer company. For example, an internet marketing company based in New York hires writers from the Philippines instead of the locals there. Surely, the company could save as much money because wage in the Philippines costs much less than the minimum wage in America. More so, Filipinos are skilled in English and are highly trainable. Hiring a New York native, then, would not make much difference from hiring an offshore writer. Well, the only difference could be your distance from the latter. That would be a huge disadvantage only if personal contact is a must for the job.

One-sided it may seem, but the helpful effects of outsourcing also come upon the individuals who get hired for the outsourced jobs like those offering SEO services. There are a lot of people in different countries who are qualified and skilled in their own field who are unemployed. It’s not because they don’t care to have a job. One primary reason is there is a lack of jobs for them. Here is where outsourcing becomes an ideal source of income for people living in places with slumped employment rate more than just being a business tactic.

In addition to what manufacturing companies do, they also farm out jobs in the countries where their cheap supplies come from. China could be a great example for this as it provides inexpensive raw materials and a huge population that can work for cheap labor. Company owners from big countries create jobs as they decide to establish a China branch. More Chinese worker can get employed from the mere construction of their branch buildings and company operation once it starts to run.

If your company is leaning towards cost-cutting, it might help if you will ponder on the above- mentioned outsourcing benefits by watching outsourcing training DVDs first. But before diving into the outsourcing pool, study first which areas of your company’s work can be outsourced. Then, think from which countries you are going to hire your distant employees. Provided that you will be spending on the training costs and wages of your future employees, it would be best that you will be given above standard service in return. It would also be nice to note that apart from thinking of the saved money and increased profit on your company’s part, outsourcing is also as a means for you to provide more work for the growing number of jobless individuals these days. For this reason, as job connections are created among different nationals through outsourcing, relationships founded on trust are also established among them. What a gratifying business strategy then it could be.