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Outsourcing for Beginners : What You Need to Know

type of outsourcing
type of outsourcing

You’ve heard all about it. The success stories of companies who are big on outsourcing, and how it continues to bring significant savings and guaranteed returns for them.

Now you are ready to take your business to the next level and are seriously considering outsourcing.  

But before you take the plunge, it is good to get a better understanding of outsourcing by learning it’s different types.

Different Types of Outsourcing

The business concept that is outsourcing was introduced to the Philippines back in 1992 when the first ever call center opened. The industry has grown so much since then that it, together with remittances from Overseas Filipino Workers (OFW), is what drives our economy.

The outsourcing industry generates jobs and provides opportunities for the Filipinos household which can be classified into four types.

Professional Outsourcing

This perhaps is the most common type of outsourcing that deals with providing specialized service such as accounting, legal, recruitment, employee relations, and common office functions similar to data encoding and providing administrative assistance.

Professional outsourcing, which may also be referred to as Business Process Outsourcing, is proven to reduce overhead costs for companies, allowing them significant savings. Not only that, but it also has given organizations access to a global talent pool at low labor costs.

Manufacturing Outsourcing

This type of service could be the oldest type of outsourcing.

Manufacturing outsourcing involves working with an overseas manufacturing company to produce your products and services with the aim of significantly lowering production cost and shortening the period it takes to produce or assemble it. Companies like Nike and Apple are known to have long been outsourcing their production to companies in China.

Information Technology Outsourcing

The outsourcing industry in the Philippines can be likened to a two-sided coin. One side is the BPO industry, the other side, the IT industry.

As we all get digitally connected, the need for IT services has been steadily increasing.

Being the highly specialized field that it is, finding the right talent at reasonable labor costs has been the constant challenge that the IT outsourcing industry is continually addressing.  

A great example is giant, successful companies like Google, WhatsApp, and Skype who have been outsourcing IT developments tasks to offshore developers for years.

Not only is IT outsourcing allowing organizations tremendous savings on labor costs, but it also helps them save on equipment costs. Companies who outsource their IT services no longer need to invest in state-of-the-art technology, and it’s maintenance.  

Lastly, by outsourcing IT support, organizations can dedicate their time and focus more on core business functions

Project Outsourcing

There may be instances when companies need to work on short term projects such as website design or maybe, a seasonal campaign.

Project outsourcing helps with such a need where companies can hire workers or professionals for such tasks. It allows them to start on projects right away and no time is wasted in looking for local talent to fill in the position temporarily. They also save on costs as hiring professional services remotely are cheaper compared to bringing in someone in-house.

What’s Next?

You can turn to Executive Boutique for your professional and IT outsourcing needs.

We provide BPO services such as data entry, e-filing, contract processing, data mining, and telemarketing. Our highly capable agents are dedicated and guaranteed to provide you with top-notch quality service that you would expect from your employees.

So what are you waiting for? Call us now to get a free quote!

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