The Benefits of Offshore Outsourcing

The Benefits of Offshore Outsourcing

Daven Michaels

Daven Michaels

New York Times Bestselling Author, 30-year business veteran, and Executive Chairman of CurrentC Group.

16656230-extra-benefits-button-on-keyboard--business-conceptOffshore Outsourcing– the process of hiring an external organization to handle certain business functions in a foreign country– is a common practice to many companies across the world, mainly to save money. But what began as a cost- cutting measure has now evolved into an industry where small- scale entrepreneurs and major companies alike turn to for reasons that go beyond pricing. While cost is still a key benefit of outsourcing, more and more companies are looking at it as a strategic planning and business outcomes tool.

Here is a closer look at the major benefits of outsourcing:

Better management of capital costs. Cost-cutting may not be the only reason to engage in offshore outsourcing, but it’s definitely a primary factor. Outsourcing reforms fixed costs into variable costs, recreates capital for investment in some other areas of your business, and enables you to do without huge expenses in the early stages of your business. Offshore outsourcing can also make your firm more appealing to other investors, since you’re able to provide more capital directly into revenue-producing activities.

Improve productivity. Businesses which try to do everything themselves have much higher research, development, marketing, and distribution costs, which result to higher pricing since these expenses must be passed- on to end- buyers. An outsourcing provider’s frame of cost and measure of economy can provide your company a significant competitive edge.

Lessen human capital development cost. Recruiting and the subsequent training of personnel for marginal or temporary projects can be very pricey, and short- term employees don’t always deliver as you expect they would. Offshore outsourcing allows you to concentrate your human resources where you need them most.

Jumpstart new projects. An ideal outsourcing partner has the necessary assets to start a project quickly. Managing that same project within your core operation could take weeks or even months to find the right people and get them ready for the tasks ahead. And, should a project require considerable capital investments (such as additional equipment, infrastructure, etc.), the start- up can even take longer.

Reduce risks. Business endeavors involve some amount of risk. Market trends, business rivals, economies, and technologies all change on a regular basis. Offshore outsourcing providers are generally much better at deciding how to avoid risk in their areas of expertise so you wont have to.

Philippines has a very high literacy rate at 94%. With all educational systems using English as a medium in teaching, Philippines leads the way in Business Process Outsourcing in Asia. Philippines has an abundance of human resource with different educational background. Due to the premium pay provided to call center agents most health care, Information technology and commerce graduates opt to work and make this new trend a career. With more than 250,000 fresh graduates per year investors will always have a fresh supply of articulate and smart workforce.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting

3 thoughts on “The Benefits of Offshore Outsourcing”

  1. Daven,
    Nice Blog! Thank you for the thought about Offshore Outsourcing specially to the mentioned leading agents that was probably great in the Philippines. Keep it up !

  2. An outsourcing provider’s frame of cost and measure of economy can provide your company a significant competitive edge.

  3. There is no doubt that outsourcing has so many advantages but then also small business do not opt for this option. Main reason behind that is security as they have to share their confidential data with them. This disadvantage can be over come by legal document on which both parties agree.


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