Complete Guide to Outsourcing

outsourcing guide

What Is Outsourcing?

Outsourcing is the process in which a company hires a third party to perform tasks, perform operations or provide services to the company. The external company, known as a service provider or third party provider, ensures that its services are provided by third parties.

Companies can now outsource a range of tasks and services to third parties such as suppliers, contractors, service providers and even third parties.

Customer service and call-in service functions are often outsourced to third parties such as call centers, customer service agents, and customer support. IT services, including information technology, data analysis, web development, and data management, are often outsourced. Customer service, call services, and functional functions were often outsourced.

Other activities such as information technology, data analysis, web development, and data management can also be outsourced. Outsourcing may involve the use of third-party logistics services managed by IT services such as FedEx’s supply chain, or it may also involve the hiring of third-party providers such as a logistics company or a third-party provider. Businesses can outsource a variety of functions, from customer service and calling – in service functions to customer care and customer service. Outsourcing is sometimes referred to as contracting, outsourcing, or outsourcing of business processes. It could also mean hiring your own staff, contractors, suppliers, consultants, or other contractors.

In order for a company to effectively outsource responsibilities, it is just as important to focus on business partnerships as on logistics. Outsourcing is about partnerships, not procurement projects, and it is about managing relationships. Maintaining and securing trustworthy relationships is an important part of outsourcing efforts as well as building relationships at the service level, but outsourcing is a managed relationship.

It is important for companies to know when a contractual agreement expires and to ensure that all parties fulfill their obligations and endure to the end of the contract. Experts recommend highlighting exit clauses in service contracts as an important part of a company’s outsourcing strategy and as a key component of an effective contract management strategy.

The underlying principle is that by focusing on a particular task, a third-party provider is able to do it better, faster, and cheaper than a lender could. In view of such advantages, companies often decide to outsource their company’s support functions in order to focus their resources more closely on their core competencies and thus gain a competitive advantage in the market. Some companies have been outsourced to reduce costs, improve efficiency, or gain speed. To achieve such benefits, companies that choose to outsource perform a range of tasks that their competitors can easily and cost-effectively perform.

However, some companies opt for outsourcing for other reasons, such as having the expertise and experience required to carry out certain activities on a full-time basis. However, some companies opt for outsourcing because they are unable or unwilling to employ those who are needed for a particular activity carried out full-time by themselves or their employees.

According to the Deloitte Outsourcing Survey 2016, 35% of respondents said they focus on measuring outsourcing partnerships with third parties such as third parties, suppliers, and suppliers. In addition, more and more companies are relying on outsourcing providers as centers of innovation. Companies choose outsourcing in order to shift compliance and regulatory requirements and obligations to third parties.

Understanding What to Outsource

Without a robust social media strategy, it is impossible to build your brand, connect with your audience, and find customers. The creation and planning of social media posts can be outsourced daily to freelancers and virtual assistants (VAs). As we have already seen, certain tasks have basic characteristics that make them good for outsourcing.

Based on this data, you can understand whether your company is moving in the right direction or not. You can create reports based on performance data and make recommendations, and the VA can also keep you informed.

Freelancers can, for example, identify potential customers, find out which industry events you should attend and collect market data. Social media tasks are often overlooked by business leaders because their importance is not as important as other aspects of the business, such as marketing and sales. Outsourcing social media functions can give these tasks the attention they deserve.

About Outsourcing

By investing time and energy in market research, entrepreneurs can focus on running their business. Such research processes are usually lengthy and time-consuming, and can, therefore, be outsourced to dedicated freelancers who can compile research data into a compact, easily digestible reports.

One of the time-consuming activities that lead to building a company’s online presence is its website or blog. Companies need to invest in regular blog articles and infographics to offer greater value to potential customers.

If you want to invest in a dedicated content creation team, you can hire freelancers to write and edit content for your company’s blog. SEO and SEM functions can also be outsourced, such as the creation of blog posts and infographics, as well as content management.

One of the earliest processes that companies had to outsource was finance and accounting, but today many companies even outsource their entire finance department to outside agencies and consultancies that can provide a wide range of services such as payroll, accounting, and financial reporting. According to an Ovum study, the most common services outsourced to accounting are payroll accounting for liabilities and receivables.

This gives you the opportunity to maintain a healthy work-life balance while doing your daily tasks efficiently. You’re Virtual Personal Assistant can do everything from answering your calls to booking your plane tickets, making appointments, and more.

Customer service has long been synonymous with outsourcing, but as companies grow, they need a larger account manager to connect with their customers and solve problems.

If it is an in-house team, regular expansion causes additional operating costs, and almost half of all companies are now outsourcing. By outsourcing the customer service you need to an outside agency, you can increase consumer satisfaction without incurring huge costs.

With their expertise, RPO services can ensure a low turnover rate and help start-ups recruit talent. This service scans your CVs, lists suitable talent for your company, interviews potential candidates, and interviews them.

Depending on the type of company you run, you can outsource different processes within your company. To help you make better decisions, we have explored the advantages and disadvantages of outsourcing.

Positions you should consider Outsourcing

Rebuilding Your Business

1.       Social Media

2.       Digital Marketing

3.       Market Research

4.       Content Creation

5.       Finance and Accounting

6.       Personal Assistance

7.       Customer Service

8.       Human Resources

9.       Website Design & SEO

10.   Research & Data Entry

11.   Telemarketing

Pros of Outsourcing

1.       Better revenue realization and enhanced returns on investment

2.       Lower labor cost and increased realization of economics of scale

3.       Tapping into a knowledge base for better innovation

4.       Frees management time, enabling companies to focus on core competencies

5.       Increases speed and the quality of delivery of outsourced activities

6.       Reduces cash outflow and optimizes resource utilization

7.       Reduced Legal Liability

Cons of Outsourcing

1.       Loss of Control Over Business Processes

2.       Quality and Turnaround Time Issues

3.       Concerns on Privacy and Intellectual Property

Tips for picking the right Outsourcing Partner

When evaluating an outsourcing partner, your main focus must be on the seller’s ability to meet your requirements. Below are some of the criteria you should consider, along with a brief description of each of these criteria and a few tips for each of them.

To assess how much experience your outsourcing provider has, you can ask the company how many projects it has already completed, how intense each project has been, and how many targets it needs to outsource. Does the outsourced provider qualify for the task of managing the tasks and processes do you want to outsource?

outsourcing partner

Ideally, your outsourcing partner should be accredited with a Business Continuity Plan (BCP) or another Business Continuity Plan. In the meantime, it ensures that it can provide uninterrupted service and support to your business. Your future outsourcing service provider could have explained how he manages his projects and solves problems in order to understand how your own projects were handled. The other team members who will work with you should also have experience in implementing business projects as well as knowledge of the business and its needs.

Now that you know the background of your potential outsourcing partner, you can better understand what the seller can offer his customers. Ask for customer reference patterns and ask for feedback on past and present customer service and on the challenges they have experienced during the partnership.

Alternatively, you can rely on case studies on the company’s website to learn about the pros and cons of each company. Ask for examples of completed projects that give you an idea of the type of service you will receive once you sign the service contract.

In order to ensure a smooth exchange of information between the outsourcing team, you must agree on a working schedule for each team member as well as the length of the working day. If you work in different time zones, your outsourcing provider must ensure that the two working hours match up to a certain degree to minimize communication gaps. To facilitate communication between you and your partner, discuss your expectations before your outsourced team members reach the scheduled times. Check your communication with your customer’s management system and check the communication within the client management systems.

A technologically mature service provider is able to support the needs and requirements of your company. Your outsourcing partner’s IT infrastructure should include a wide range of IT services such as network infrastructure, data centers, and cloud services. The vendor may also need to invest in other company-specific technologies, such as cloud computing, virtualization, or cloud storage.

Fixed project costs can bring enormous savings, so ask your potential partner what options are available to you. Otherwise, it is your responsibility to investigate and verify hidden costs in the provider’s IT infrastructure that could cause your business unnecessary costs.

The success of an outsourcing company depends to a large extent on the workforce and other factors for the outsourcing team. For example, you could review the provider’s recruitment policies and processes to emphasize the company’s commitment to diversity and inclusion, as well as the quality of its employees.

When choosing a partner, you want to ensure that the company is stable and solvent in the long term, and it is healthy for your partner to understand and adopt the corporate culture, including its commitment to diversity and inclusion. If you follow the tips in this guide, you will find a provider that suits your needs and the goals and values of your company, not just the needs of the outsourcing company itself. When choosing a partner: When choosing an outsourcing partner for your company, especially in the early stages of a new project or business cycle, it is always healthy to ensure that your companies are available when they need an outsourcing partner.

Why Outsource to the Philippines

Outsourcing Philippines

More than 30 years ago, the Philippines introduced English as an official language that can only be taught in the country’s and the region’s schools. At the turn of the 20th century, the Utaschen became the property of the Philippines and dominated them for the rest of their history. America sent more than 500 language teachers to the Philippines to establish the English language.

Today, the Philippines is an English-speaking country, along with the United States and Great Britain. English was introduced as the official language of science, mathematics, and technology in the country.

This means there is a huge supply of English-speaking staff, and many speak with a perfect American accent. Most Filipinos speak English at a high level, but not all speak it at the highest level.

You may be busy during the holidays or tax season, and you may not be able to hire quickly enough. Or maybe you have a fast-growing company with many employees and need to have a large number of people in your office because your business is growing fast.

With 60 million Filipinos speaking English, you can recruit from a huge talent pool. If you want to start from 25 – 50 employees, you will probably find talent that fits your needs. You could start with a small team of 2 – 5 or even 10 – 20 employees. Outsourcing can give your business flexibility to grow and it can also grow faster than outsourcing to other countries such as the US, Canada, Australia, or Japan.

Companies from many different industries are outsourcing to the Philippines, and we have dedicated account managers who specialize in providing solutions for these industries. This means that you can find a widerange of managed service providers in the country, such as account management,accounting, marketing, finance, sales, and much more. We can help you by providing support and advice to help you get the most out of your remote team.

The Philippine government has placed great emphasis on training its workforce over the decades, and there are now more than 1,000 private-sector training centers in the country. The Heads of State and The government have also invested heavily in infrastructures such as roads and internet bandwidth.

A recent McKinsey study ranks the Philippines as one of the few developing countries that are expected to remain below the global average over the next decade. In fact, small and medium-sized enterprises have a higher risk of being sued every year than large corporations. Companies in the United States are more than twice as likely to be sued by their employees as in other countries, and at worst, the average cost of going to court is $125,000.

When outsourcing, the company assumes the risk and the employees benefit, but only if they work for the outsourced company and benefit from the advantages.

Most customers use cloud staff for business process outsourcing (BPO), which is defined as outsourcing to third parties. In other words, there is no need to bother with time-intensive tasks that are not at the core of the business. If your most important employees spend time on repetitive topics such as reporting, you can hire staff in the Philippines to take care of these topics. This in turn allows your employees to fully concentrate on the tasks where they can add the most value to your company.

Outsourcing Statistics

1.       68% of companies in the US outsource their services to low-cost countries including small businesses. They see the industry as a way to cut costs, improve their services, and flexibly expand their business. Large companies, especially in the telecom industry, started this trend through delegating their customer service to call centers in the Philippines
2.       The outsourcing industry is one of the largest contributors to the global economy, aside from oil and gas. In 2019, the global outsourcing industry amounted to US$92.5 billion, according to Statista. In recent studies, experts see the industry grow by up to US$114 billion by 2025, with Human Resources being one of the lead contributors to this growth.
3.       The United States remains as the leading outsourcing market. In a 2017 report by KPMG, 84.2% of outsourcing deals originated from the country. This is followed by the United Kingdom and Europe. Currently, the US, UK, and Australia are some of the leading outsourcing markets contracting to companies in the Philippines
4.       Over 44% of chief intelligence officers say that they are more likely to use outsourcing suppliers than they were just five years ago.
5.       71% of financial service executives outsource or offshore some of their services.
6.       The most commonly outsourced jobs in small businesses are accounting and IT.
7.       About 24% of small businesses outsource to improve efficiency.
8.       29% of businesses with fewer than 50 employees outsource, compared to 66% with 50 or more employees.

Future of Outsourcing

Business Process Outsourcing (BPO) is nothing new, and for years companies have outsourced less important and lengthy processes to other companies and even other countries. For example, it is not uncommon for companies to entrust contracts such as large-scale printing to companies such as Mines Press. However, the landscape of the B-PO industry is changing as automation, artificial intelligence, and other technologies continue to improve.

The following are just a few BPO trends that have been on the rise this year, but there are also industries – specific B PO companies that need to evolve in different ways to keep up with rising demand. Financial and accounting trends for 2019 are likely to differ from the increasing outsourcing trends of recent years and the future.

Future of outsourcing

For starters, automation of the workplace is a scary concept for many, and with good reason: while robots coming for the job still seem like science fiction, researchers predict what machines could do in 2030 “s. However, the BPO industry need not fear obsolescence: once fully implemented, machines and software can execute orders for free, with B PO companies benefiting from being able to execute jobs for less money.

While machines will be able to perform repetitive tasks and look for patterns in jobs that are frequently outsourced, they will also be able to make decisions and perform advanced functions. BPO companies will continue to need people to monitor the workings of the machines and perform tasks for which automation is less suitable.

It is becoming increasingly difficult for a single BPO to provide all the outsourcing services a company needs. This means that companies have to look for several outsourcing partners who specialize in areas with high demand. Outsourcing companies will not only focus on how to benefit a particular group of partners; they will no longer be able to rely on doing as much of their own work as they did in the past, and they will not only be able to behave more efficiently but will also be able to do so.

More and more companies will start outsourcing non-critical processes to multiple products and companies that need to adapt to a single customer. For example, one of the biggest challenges IT departments face is not only adapting to the new environment but also learning to approach cultural barriers in order to expand their business.

Gone are the days when companies relied on their own software solutions and hired local employees to take care of them. Cloud services are much cheaper than other solutions, which means that BPO companies also need to use the cloud to keep up with their customers “technological expectations.

As the success of BPO and the future of the outsourcing industry continue to grow, companies will begin to rely more and more on services from them. In general, outsourcing companies need to be better-rounded up for the services they provide in order to stay ahead of the market. There has also been a shift toward greater trust in B-POAs, as companies have largely decided to outsource their non-critical functions in favor of outsourcing their technology. As their clients begin to seek business expertise in addition to the usual services, the role of an outsourcing company becomes more – and – advisory.

Providing valuable services and expertise becomes more important to outsourcing companies than lowering costs. This means that it is becoming increasingly common for companies to outsource their own core business in order to remain competitive.


Outsourcing might be great for many companies and others may decide that its right for them. The benefits far outweigh any cons that might keep you from moving forward with an outsourcing provider. At the end of the day, only you can decide if outsourcing it gonna be right for your business. But if you choose to explore this options we would love to talk to you and see if maybe our company is a good fit for your needs. 

Contact us today if you would like to see if we can provide an amazing service to your company. 

Created by: Jason A Ellis
MySource Solutions 
Phone: 844-468-3330
My Source Solutions
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