With the unstoppable demands for innovation in our diverse commerce, outsourcing jobs has become a visible trend which can be observed across industries such as healthcare, telecommunications, travel and hospitality, and finance and banking. But, what does it really mean when someone say the word “outsourcing”. According to Entrepreneur.com, outsourcing is the practice of sending certain job functions outside a company instead of handling them in house. Hence, more companies are now venturing out to outsourcing as a way to grow. While these companies are growing, customers start to increase. Customers, which are considered to be the lifeline of any company have these expectation of innovation in every services that a company offers and Sunrise Services try it’s best to be the one.
As we try to understand what is there to know about outsourcing, let us try to classify it. There are two ways of classify outsourcing-first is by means of the services that it will accomplish. Types of Outsourcing based on Services: 1.Technology Services Outsourcing includes Electronic Commerce (eCommerce) Software Applications Telecommunications Web Design and Development Web Hosting. 2.Business Process Outsourcing includes Customer Relations Finance or Accounting Human Resources Logistics On the other hand, outsourcing can also be classified based on proximity. 1.Local outsourcing Companies can also locally outsource jobs within their own country. 2.Offshore outsourcing Companies can find a team that can do the tasks needed in another country such as the Philippines and India, etc. 3.Nearshore outsourcing A little variation of the offshore outsourcing is the nearshore outsourcing. With nearshore outsourcing, you can choose a company in another country that is not far from yours. For example: If you are located in the USA, you can probably outsource in Mexico or Canada. Sunrise bpo outsources in Singapore. There’s truly a number of factors to consider when outsourcing but, what’s the real reason behind every company who’s outsourcing these business functions? According to TheBalance.com, some of the most common reasons include: Reducing and controlling operating costs Improving company focus Gaining access to world-class capabilities Freeing internal resources for other purposes Streamlining or increasing efficiency for time-consuming functions Maximizing use of external resources Sharing risks with a partner company
With each type of outsourcing, there will always be the talk of the “pros and cons”. While the local and nearshore give you a more reachable view of the operations, the labor cost can really be higher compared to an offshore setup. The time difference as well as the cultural adaptability also pose as an uncertainty whenever a company plans to outsource. However, there are offshoring destinations that has an efficient workforce that is willing to work in any time of the day. It’s literally like a 24/7 workforce that can cover any time difference. This is a common set-up in countries like India, Philippines, and China. Furthermore, to bridge in the cultural gaps, series of training in personality development, cultural familiarization, and language spoken (e.g., accent, diction, sentence construction, and familiarization with slangs) are provided to better prepare the outsourcing companies and its front-liners. When you outsource, you also get to tap the labor market of other countries, which gives you a wider chance of discovering and employing efficient talents. Nowadays, literacy rate continuous to soar and the graduates are more aggressive and competitive to land a job. Thus, this huge labor market in the offshore structure makes it more economical for employers to outsource. With the large number of graduates and qualified talents, an optimal number of workers are available to fill in the job openings.