Here Is All You Need to Know!
Outsourcing is a method by which some business processes are handed over to different companies. This is in return for an annual fee (that’s less than what you’d pay to your own employees) which is paid to them. BPO (Business Process Outsourcing) is another name for the type of outsourcing that companies do. The company being outsourced to can also be called a bpocenter.
Outsourcing seems to be something daunting by any new company that is about to undergo this process. But it has multiple benefits, the biggest of which is the reduction of costs. The global market for outsourcing has doubled from 2000 to 2019. This shows that many companies are headed in this direction.
But enough beating around the bush. The ways and methods of outsourcing to cut your labor cost up to 70% maximum are guarded in mystery. So, we’ve searched far and wide on the internet and have compiled the following solutions to help you with!
Top 4 Must-Try Ways of Outsourcing to Cut Your Labor Cost by Up to 70%
1. Outsource to Cheaper Countries
Countries like Albania, India, and the Philippines are developing nations, and while they are making economic progress, it’s not much. The daily wage in Albania is about $38. A call center in these nations, for example, can handle your daily intake of customer complaints and forward the important ones to you. Similarly, if you’re a traveling company, the bpocenter can guide your customers about various travel destinations and plans.
2. No Health Insurance, No Vacation Pay!
This is one of the best benefits that companies get from outsourcing. As the bpocenter is now doing some of your tasks, your company is paying them a cheaper rate compared to what you’d pay to your employees. You’re also not paying any vacation leaves or health expenses to the bpocenter either.
3. No Paperwork and Fewer Taxes
A fairly noticeable change is how you don’t have to do extra paperwork to hire, manage and fire employees. Outsourcing solutions like these are very practical. Moreover, payroll taxes can be slashed down further by outsourcing too.
4. A Good Deal of House-Keeping
Effects will be seen naturally on your end too. The extra workforce that was incurring extra costs will be laid off, as their work is now being done by the bpocenter. A few extra salaries for the next few months is what you’d have to pay to the laid-off, to comply with local laws. Other than that, happy saving!
Extra employees being laid off, less paperwork being done, fewer taxes, vacation pays, and health insurance is paid. All of this is only the tip of the iceberg known as outsourcing. But eventually, it’ll be your decision to choose from as to whom you should actually outsource to while ensuring quality.
Get in touch with EuroCom CX today for professional assistance in outsourcing.