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Following on from the last post that I did on Outsourcing, I received quite a few emails on the subject, as well as having a TON of visitors download my free eBook (make sure you also do this if you haven’t already, at the bottom of this post, or on the top-right side of the site!)…
I thought a quick breakdown on the subject might be welcomed. So, here it is…
Outsourcing is also known as Business Process Outsourcing (BPO). This is the process of hiring another individual or company, either domestically or internationally, to handle business activities for you. It has become a common business practice that allows small and medium-sized businesses to gain services and skills they would usually find hard to develop, because of either financial or manpower restrictions, or possibly a combination of both. Meaning, you can grow your business as and when you need to, without any major investment.
It also allows your business to focus on core competencies and, more importantly, cut costs and improve efficiency, all very much hassle-free. As time has gone by over the last decade or so, business owners now realize that there are many reasons that companies, both big and small, outsource various jobs, but the most prominent advantage seems to be the fact that it saves money.
Many of the individuals or companies that provide outsourcing services are able to do the work for considerably less money, as they don’t have to provide benefits to their workers, and have fewer overhead expenses to worry about, especially if they are based in a non-Western country, such as India, China or where I am based, here in the Philippines.
Outsourcing also allows companies to focus on other business issues while having the details taken care of by outside experts. A perfect example would be knowing that telemarketing is the best way to get the word out in regards to a new product or service you’re launching (either locally, nationally or internationally), but admitting that it’s not really your forte. You can hire an outsourcing company that provides these services, whilst you concentrate on getting ready for the influx of inquiries as a result of the campaign.
It also means that a large amount of resources and attention that might fall on the shoulders of management professionals can be used for more important, broader issues within the company – which is always a good thing! The specialized company that handles the outsourced work is often streamlined and will normally have world-class capabilities and access to new technology that a growing company simply couldn’t afford to invest in on their own. Plus, if a company is looking to expand, outsourcing is a cost-effective way to start building foundations in other countries, too.
Such tasks can be, but are not limited to roles such as accounting, bookkeeping, sales and marketing, design and manufacturing, development, promotions, administrative and back office assistance, customer service, web development and much more.
Nowadays, most freelancers or outsourcing providers will fall into one of the following categories, in regards to the services that they provide their clients. Some will even offer several of these:
- Inbound Customer Service
- Outbound Telemarketing
- Web Design & Development
- SEO and Online Marketing
- Back Office / Admin Support
- Virtual Assistant Services
- Accounting and HR Management
- Marketing & Sales Support
Simply put, outsourcing will give away some of your business tasks that can easily be managed by an independent entity, making life easier for business owners. And most of the time, as well as being able to pass on these tasks to someone more experienced than yourself (or your company), you will also save money, against hiring someone locally to do the same job – sometimes as much as 60%!
Regardless of what area of your business you might be thinking about outsourcing, the bottom line here is that taking part in this extremely worthwhile activity will give you the opportunity to expand your business at the same time as saving costs.
As someone who has been involved in the outsourcing industry in one way, shape or form for close to a decade, I’d be happy to answer any questions you might have on the subject – regardless of content. So, feel free to comment below, join me on Twitter – or email me directly if you would like to keep things a little more ‘private’. Cheers!
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I think some people are afraid of the overseas outsourcing (or outsourcing in general) because of a lack of information.
Even I was uneducated at one point about the benefits of VA’s, and after doing my own research, I’ve discovered that its a system that big business has been using for decades.
Why can’t the little guy get in on that without feeling like they’re cheating – they shouldn’t feel that way.
In the end, everyone gets their due – the VA’s get paid well according to their standard of living in their home country, the businessman saves money on operating costs, and everyone is happy provided the work is of a certain quality and that the work actually keeps coming in to warrant having staff.
Why knock it? – it works. Good post Chris.
Hi Drezz
Great comment, bud – thank you.
I agree. As long as everyone involved is happy at the end of each and every work day, why not, indeed…?!
And the GREAT news is that more and more outsourcing set-up’s are being geared towards the solopreneur / small business owner than ever before.
PROOF that it is required and welcomed.
Thanks again for dropping by.
Chris
Hi Chris
I’ve been reading your blog for a while and love the broad approach you take to covering so many different subject matters.
I believe that its important to get a general feel for a lifestyle before you try and emulate it. You are certainly providing a good source of knowledge here.
Outsourcing is a complicated topic to get around. This has certainly helped.
Joe
Hi Joe
Firstly, thanks so much for the kind words about the blog.
You’re right to truly be able to set something in motion, that you feel you would like, you do need to consume yourself a little in all the possibilities.
I’m simply trying to put something together that is not just interesting and helpful NOW, but something that will still be both of those things, and more, for hopefully years to come.
Again, thanks for the comment. I really appreciated, buddy.
Best,
Chris
Chris
What would you suggest I do if I wanted to hire a fulltime member of staff on a freelancing basis, but without having to go through all the interview process myself.
Is there any way around this?
I reason why I ask is that I am generally too busy and a little scared that I might pick a rotten apple, if you know what I mean.
Good post.
Sam
Hey Sam
Interesting question, and I am actually working on something right now for this type of thing – hope to give a few more details away soon.
But, bottom line – its tough to find a way to catch good quality freelance staff unless you really know a) where to go and b) what youre doing, in regards to getting rid of the weaker choices to make way for something you’ll be happy with. People very rarely get it ‘right’ the first time around.
Look around, greatly, and see what you can rustle up, in terms of a potential list of people. Then tread carefully, ask lots of questions, and if in doubt – follow your gut, my man!
Good luck,
Chris
PS. Love the gravatar image – awesome cartoon…!
Hi Chris
Great Blog Sir.
On the question of what one can outsource, I got to learn from some of the Gurus here in india.
To Outsource – One should have the 360 degree view of what’s involved. What you can not understand, can not be outsourced and would almost always fail.
Hence to write a job description of what key areas need help and what are processes that needs to be followed becomes utmost important.
But then again on non-core areas one can afford to experiment a little bit also.
Keep up the good work!
Sachin Bhatia
Hi Sachin
Nice to hear from you. Hope all is good.
Thanks for the the comment and kind words, too!
Regards,
Chris
Outsourcing is critical for taking your business from just a small operation to something that will really hit it out of the ballpark.
There just aren’t enough hours in the day for an entrepreneur to do everything him/herself and do a quality job. We are not experts at everything, only a tiny amount of things. Leaave the rest to someone else.
-Joshua Black
The Underdog Millionaire
Hi Joshua
Great comment, buddy!
You are right – there aren’t enough hours in the day and we’re certainly NOT experts at everything we need to be great at, as business owners, to be able to kick ass and take names!
Always enjoy your comments. Keep ‘em coming!
Best,
Chris
Hi,
Are you in the call center business yourself? Im a british guy who has a business in the uk which i set up when i was 19, went travelling around the world at 20 and ended up in the philippines which was my last country on my tour, ive been living there ever since. Im 25 turning 26 now. My uk business is still going, and i have a business in boracay island too (in the philippines). But my businesses are self run, and leaves me with alot of free time which is kind of boring me.
Im a perfect position to jump into the call center industry, ive done sales, telesales since i was 15 up until i started jpmorgan at 18. At 15 i was the best seller and sent to the headquarters to work with the big guys in the evenings which looked funny as i would come in in my school uniform.
Anyway i want to dig my teeth into the call center industry. It really interests me and i enjoy a busy environment and have great sales skills. Having lived here in the philippines for 5 years now i can work well with the locals.
So if anyone here is in the industry in the Phiippines please send me a mail if you think you have some work for me
Take Care,
Kris.
Hi Kris
Feel free to send a full resume through to hrd @ welive2sell.com and we’ll check it over. Not hiring right this second, but possibly in the near future.
Thanks for reaching out.
Chris
Just read through a few more posts and videos, yep your in the call center industry
I like the video by the way in boracay, thats the seven stones resort happy hour?
Sure was, Kris.
Hope Boracay is treating you well.
Chris
A very interesting post on outsourcing. Looking your strengths and weaknesses and potential opportunities and challenges is essential when deciding whether to outsource or not.
Start-up’s should concentrate on their core competences and outsource the rest.
Boracay has been heaven on same days lately, other days very bad, the typhoon season came very late this year.
Chris, how did you go from arriving in the Philippines with nothing, in terms of, you didnt have a business here, to going on to own a big company such as yours? I own 2 small businesses, and have always wondered how people get into that big business level. How did you start off in the Philippines? Did you have a dry period when you where starting or did you have clients lined up before starting your business? Did you risk your own private funds/savings and did you need to invest alot? I guess with a call center you wouldnt have too big of a start up cost, but i heard the equipment you guys use in the industry is very costly?
Lastly, i think the Philippines give out special visa to guys in your industry? Is that true?
If you have time to answer any of these it would be great to here from you.
Thanks,
Kris.
Hey Chris,
I can’t help but, once again, relate to this post. Outsourcing some of my business processes to a VA has worked wonders for me. You truly are an outsourcing expert in Philippines. Your blog has been an enjoyable and informative read giving me useful tips, helpful insights, and further information about better ways of running a business.
Kudos for being a great outsourcing expert in Philippines.