Why do companies outsource

Why do companies outsource

Why do companies outsource?

The answer varies depending on the needs of the company.  Some companies would outsource because their business outgrew their capacity. However, most of the top reasons why companies outsource are the following:

  1. Reducing costs – In most situations, it is cheaper and hassle-free to outsource than increasing the labor force especially if the demand is not expected to last longer.  A good example is a financial firm which expects to receive more calls during tax season than any other season of the year.  Rather than training additional employees to do the job, companies outsource the services from others like e4 BPO to do the job for them at a very low cost.
  2. Focusing on what they do best – Being able to delegate some of their workload to others who know the job allows them to focus on what they do best. Doing everything by themselves doesn’t necessarily mean saving and increasing their profits.
  3. Competencies – Outsourcing allows them to have access to the most competent person in a specific field rather than limiting them to whoever is available locally which may not be competent enough to do the job.

Looking at the list of companies that outsource, we can see that many Fortune 500 and Fortune 1000 companies in US and UK are outsourcing.  We may wonder why they are doing it.  The reason or reasons can be one of those above but for sure they have made careful research and weighed every option available before deciding to outsource.

I agree that outsourcing may not be the perfect solution that a company wanted but it could be the best option after weighing the pros and cons.

For those companies that are not well informed about the benefits of outsourcing think that they are fine with what they currently have.  Unknowingly, their competitors or maybe the underdogs in the industry are devising plans that would bring them to where they want to be.  Sooner or later they will realize that they are left behind by their competition.

Let me site an example to make myself clear about the matter.  Nowadays, people are becoming more innovative and try to maximize what they can get out in seconds. Apparently, I’m referring to the internet.  When somebody wants something, he will search it first on the internet.  He will compare the prices, quality, location, services and many other things.

However, if your website is nowhere to be found in the first few pages of the search results your company is already eliminated in the process. You just lose a sale opportunity that you been waiting for. It means you are not optimizing our website for SEO Search Engine Optimization.

Don’t you think it’s not a tragic experience?  For this particular instance, you already lost a sale, a repeat sale and a client that might be able to tell his friends that you exist.

If you have a website and you don’t know your rank in the search results you are in big trouble.  Don’t ever waste some time for it might be too late when you come to realize about. Contact us for our outsourced SEO services and we will help you increase your bottom line with this service that we offer.

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  • michael

    nice list.

  • http://offshoring.com.ph/ Henry Acosta

    “I agree that outsourcing may not be the perfect solution that a company wanted but it could be the best option after weighing the pros and cons.” This quote says it all. This is why businesses try outsourcing as time goes on. Great perspective on this topic.