There’s been a lot of hype about outsourcing in the last decade, and even more in recent years. There’s been some controversy as well. We’re here to lay out the facts for you and explain why outsourcing has become so popular and how it can directly benefit your business.
Why the popularity?
Outsourcing in growing and growing, with no slowing down in sight. Part of the reason why outsourcing is so popular is because it makes sense. Sending work that is either too difficult or time-consuming and isn’t one of your company’s core focuses to professionals who know what they’re doing and can do it at a lower cost… What’s not to love? The trend for businesses is clear: send more and more work overseas.
The external companies that you will come to partner with when outsourcing are increasing their expertise and offerings, making outsourcing a more appealing option for companies every year. Outsourcing is here to stay, so if you want to get ahead, then you will need to catch a ride on the bandwagon as well.
Reasons to outsource
If you are currently considering outsourcing, let us clear up some things for you. You have probably been thinking about some key questions that have led you to this idea. Perhaps you noticed that your resources are not being used as efficiently or effectively as possible, or that some of your company’s processes could be handled more quickly. Perhaps your company lacks expertise in a specific area that isn’t within the core focus of your company (such as in the realms of legal or technology), and you need a solution. Or maybe you are just realizing that costs could be greatly reduced through outsourcing.
If you are having these thoughts, along with “is now a good time to start outsourcing,” then we can offer a solution. Our staff at Sidago Integrated Solutions can help you figure out if outsourcing will be a good choice for you. We can take out all the stress and effort by connecting you to outsourcing partners quickly. If you’re still not completely convinced, keep reading for some explanations for how outsourcing is beneficial to any company.
Outsourcing lets you focus on the important things
When you outsource non-core processes, it frees up time, energy, and focus for the most important things you and your business are dealing with. If you’re a healthcare company, for example, your primary focus is most likely on patient care. If you are getting bogged down with things like transcription, the processing of claims, and unpaid medical bills, however, you can not do that. You are being stretched thin and aren’t able to use all of your energy on your primary focus. This is where outsourcing can help.
Outsourcing lets you quickly integrate new technology
If you outsource IT processes to companies that are experts in using new technology effectively, you will be able to manage the world of technology in your company with ease. You’re letting the experts handle it for you, making transitions smooth and foolproof.
You will save on operating costs and increase operational performance
The price tag that comes with having effective HR, administrative work, utilities and rentals, and payroll services done is drastically lower in some offshore countries such as India or the Philippines. It simultaneously increases the performance of these areas, as the vendors abroad are experts in that specific field. You have therefore improved your company’s performance and increased the amount of expertise available, all at a lower price than if you had stayed within your company.
There is a shortage of talent in many countries, and outsourcing is the solution for that shortage. Lots of people are reaching retirement these days, with few to replace them — but if you set your sights abroad, you will manage to find the talent anyway. Let us at Sidago help you do just that.
You have probably heard of outsourcing before, but have you heard why exactly it’s so popular? Below are some of the reasons.
Outsourcing means assigning business processes (typically non-core ones) to an overseas location. If a process can be done elsewhere, it can be outsourced. Whether it’s inventory management, transaction processing, or managing payroll and orders, there are tons of jobs out there that are easy to outsource to reliable, external parties.
Of course, the most common association with outsourcing is a call center in India, but this is just one example of successful outsourcing. Transcription, data conversion, accounting, and bookkeeping are some of the most common outsourcing examples for some highly successful businesses. Sidago Integrated Solutions is the best when it comes to establishing relationships with external sources for all your outsourcing needs.
Benefits of outsourcing
There are plenty of ways your business can benefit from outsourcing! The most well-known reason is, of course, the monetary savings. Your company could save tons of money by sending some of those non-core jobs to other shores — and often this even comes with higher quality work too! Generally savings reach somewhere around 60% when you outsource your project. What’s not to love?
Outsourcing work will require an organization like Sidago Integrated Solutions to use their experience to help you out with this new endeavor. At Sidago, we have plenty of past experience under our belts, making it easy for us to match you up with the outsourcing opportunities your company needs. We can find a company that has the expertise and knowledge to make sure you get what needs to be done even more efficiently than it would be done back home.
Keep your focus
Once you have outsourced the non-core processes of your company, you will finally have room to focus all your local energy on the core areas that really count. Research and development can make more progress, and whatever your company’s focus is can become your focus again. Why deal with all the other fluff if you can just outsource it?
When you outsource work, there is no need to spend your resources training people to do the jobs. Instead, you have people who already know what they’re doing, saving you valuable resources and, therefore, increasing the resources you have for the core business processes. Sidago Integrated Solutions has all the resources at our fingertips, and with us, you will forego any of the difficulties that come with tracking down the expert resources you need overseas.
Neverending work day
The beauty of sending some of your work to a far away land is that it allows your business to continue running basically continuously. This is especially gratifying if you have something that needs to be done in a limited amount of time. If it’s a job that has been done overseas, the work is actually getting done while you sleep! You can start next morning with the work already finished. The sun never sets on a company that has people overseas.
Quality of service
Because outsourced work can get done faster, better, and more efficiently, your company’s overall quality of service is going to be vastly improved. You can turn ideas into research and research into products faster than you’ve ever imagined — and all at a cheaper rate than you would have had otherwise!
When you take all these factors into account, why wouldn’t you want to outsource some of your non-core work? Let us at Sidago help you do it today.
Globalization is nothing new these days. The speed of shared information in the 21st century has allowed for faster and more expansive rates of globalization now more than ever before. This means big changes in the business world have taken place (and are still taking place). The importance of globalization increases each year, forming a trend that doesn’t appear to be slowing down anytime soon. So is this trend ‘good’ or ‘bad’ for businesses?
Unfortunately, the answer isn’t as simple as just good or bad. It varies vastly on the type of businesses somone considers ‘good’ or ‘bad,’ as well as your particular point of view. Before we delve into its results, let’s talk about the definition of globalization itself first.
What is globalization?
In case you have been living under a rock, globalization is the process of the world going from isolation to integration on a global scale. It is the increasing of cooperation in terms of economics, business, and politics, and it is marked by the sharing of ideas around the world. Globalization is especially enhanced by improving technology that makes sharing information and ideas just one click away.
In terms of business, one specific aspect of globalization is the addition of offshoring or outsourcing. Because of improved technology and the increased availability of workforces located all over the world, work is easily able to be done remotely. This means big savings in cost and increases in quality of companies.
What are the advantages of globalization?
There are a large number of clear advantages that come with globalization. Whether it’s an advantage for a country, for the world, for a company, or for all of the above, here is a comprehensive list for you to understand better how globalization affects businesses.
Trading more freely
One of the best aspects of globalization is the fact that companies from all over the world can trade with one another freely, due to the lifting of restrictions on imports and exports between countries. This was not always the case, however, so it is definitely a relatively recent advantage for companies everywhere.
For businesses, the market of consumers has increased exponentially with globalization. Suddenly businesses are able to tap into markets that didn’t exist for them previousl. They can find customers and consumers from all over the world to enjoy their products, which means a potential for growing as a business.
Because companies from different countries are now competing against each other for a wider common market, the prices are being driven down. This is more of an advantage for the consumers, of course, but in the end aren’t we all consumers anyway?
Increases opportunities for all countries
Nowadays people and companies from every country big or small, rich or poor, have the opportunity to grow. For countries that have lots of one thing but are lacking in another; for instance, a country with lots of oil but not enough farmland this is critical. Now they can export the oil and earn enough money to purchase those same foods they would have grown from other countries.
Freedom of movement
These days it is pretty easy for workers to market their skills abroad and find a job elsewhere than their home country. If there is a skill lack (and there’s always one of some sort in every country), that country can search for foreigners to fill that gap. This makes opportunities greater for the worker and country both.
Globalization and the Internet have led to an easier time of finding companies or people to do the work that you shouldn’t waste your time doing yourself, especially if you are an entrepreneur. This means it’s easier to outsource on any of your extra work, allowing you to save money and time while simultaneously improving your business. Get started now with Sidago.
Business operations are more important than you might think. It does not matter how large or small a business is or what industry it is in – it needs to have excellent business operations to be an excellent business.
So what are business operations? The term refers to everything a business is doing to provide a service to its customers. The most important aspect of excellent business operations is how cohesive these operations are. If all the operations in your business can work together smoothly, like a well-oiled machine, then you are effectively maximizing your company’s potential. Your operations will be at their peak levels of efficiency, therefore reducing cost and improving customer satisfaction overall.
If, however, your business operations resemble more of a series of disjointed departments that rarely cross over or work together, then there is significant room for improvement.
Plenty of companies outsource their business operations, which can sometimes make cohesiveness additionally difficult, as simple geography can also play a part if it is not managed well. If, however, you have a company like Sidago by your side to help you partner with an external business, then it will be much easier to run a cohesive, connected business. You, therefore, increase efficiency and cut costs while outsourcing effectively.
So how exactly will increasing the standards of your business operations improve your business?
Improved problem solving
If a company is set up to achieve operational excellence, then its employees will be set up to solve their own problems when they arise. Not only should employees have the know-how to solve (or figure out how to solve) potential issues that might come up, but they should also be given the authority to make the decisions that need to be made. Employees will be able to do quite a bit on their own, but, of course, they will also need to consult their supervisor from time to time.
This process allows employees to snag problems before they have time to get worse, and fix them as soon as possible, therefore streamlining the entire process without making the manager or supervisor do everyone else’s work. This serves the dual purpose of keeping employees motivated since they feel needed and are encouraged by that feeling.
Save on time
Companies that have excellence in business operations know that their employees should be able to solve problems themselves. Everyone should have the proper tools, information, and authorization necessary to solve the everyday problems that come his or her way. If they do, this will save time all around. Their time will be freed up because they will not need to track down a manager to solve the issue, managers’ time will be freed up because they will not need to worry about answering said questions. Therefore, employees and managers can spend their time focusing their efforts on what they are supposed to be doing: helping the company climb the ladder in excellence.
Streamlining processes leads to expansion
The beauty of operational excellence is the fact that all of the processes within your business can be streamlined — all the extra fluff is no longer necessary in an efficient system. Processes are defined clearly and concretely, and roles and rules are designed with efficiency in mind. Once your company has eliminated the fluff, it can expand and grow without the hassle and confusion that comes with a company that doesn’t have cohesive, efficient business operations.
Clearly defined expectations and standardized processes mean taking out the extra planning time and effort put into things like training, opening new branches, and so on. When this part is already figured out, much more time and effort can be spent on the most important things in your business.
If you are thinking about expanding and outsourcing and don’t want to compromise the integrity and cohesion of your business processes, why not give Sidago a try? We will ensure that you are happy with the results.
While we’d be lying if we said there hadn’t been any controversy or disagreements when it comes to offshoring, overall it can lead to some amazing results in which the positives can greatly outweigh the negatives. While this, of course, depends on the company and what they need to assign to be offshored, it is safe to say that considering offshoring is a good idea for any business.
What is offshoring?
Simply put, offshoring is the same thing as outsourcing — but it always includes sending the work (or getting the work from) another country. Offshoring can either be done from within the company (sending a person within the company to a foreign location or hiring someone living in another country through your own company), or through outsourcing via external means.
For most, the easiest and most reliable way to find an external partner for offshored projects is through a company like Sidago. Sidago offers both experience and knowledge that will help you find exactly the overseas partner you are looking for.
Cost of production and operation
Over the generations, companies have always been on the lookout for ways that will reduce their production and operation costs — and offshoring is exactly the solution to do just that. If a company is able to save money by offshoring, it is then going to be able to increase that company’s ability to sustain itself and to grow and expand more and more. Lowered costs also mean more capital for innovation, research and development, and more. In other words, companies simply improve in general.
More satisfied customers
If a company is saving money without sacrificing quality (as generally happens with successful offshoring work), then it can focus its efforts and capital on other things such as increasing their services and developing new service lines. This will lead to customers who are overall more satisfied and, therefore, spend more money within the company, leading to further expansion of the company itself.
Perhaps most obvious of all is the geographic expansion that offshoring brings to a company. A new market, culture, and country have suddenly come directly into play, and that will help it grow accordingly. If there are any negatives to offshoring, this fact alone balances it out. The company can suddenly directly access its global customers and can increase its offerings in a regional market. Support will be provided in a more timely manner when workers are located in vastly different time zones. Also. when staff is included in a specific region of the world, a better cultural understand of that area (and its customers) exists.
Another important customer service point is the availability to work at all hours. A company that has offshored to countries in significantly different time zones (the United States to India, for example), then there will be people working more or less all the time throughout one day. A person who has a problem and needs to get in touch with your company will have no problem at all — they certainly will get through to someone, and that also leads to further customer satisfaction.
The most common offshored jobs
In general, jobs that are deemed worthy to be offshore are the ones that are relatively routine and office-based work. Out of all the offshored jobs out there, four-fifths of that entire group is comprised of four specific areas of work: office support, computer jobs, management, and sales jobs. These are by no means the only jobs available to be offshored, of course.
The key to successful offshoring
The way to fully take advantage of these multiple growth opportunities is to go in with a plan and with the right partners to help you out. Sidago is happy to provide that partnership, and to ensure that all your offshoring needs are fulfilled, along with meeting your company’s goals and plans.
Outsourcing has been a business practice for generations. Modern outsourcing methods differ from years past due to technology. Businesses seeking a competitive edge found the Internet to be a boon for outsourcing projects. No longer did companies need to hire locally for many aspects of business operations. Value was found in hiring professionals from around the globe, many of which had the education and experience needed to fulfil project requirements, at a significant cost reduction.
Starting with intangibles such as administrative skills, outsourcing began expanding to include tangibles such as manufacturing. Although outsourcing projects to other areas of the world for a lower price had been done for decades, the rapidly expanding Internet allowed client companies to interact with contractors around the globe, quickly. Before the Internet, companies spent millions of dollars each year to communicate with, and visit in person with, heads of offshore companies. Now, it’s as easy as a phone call, without long-distance calls and air travel requirements.
Things have changed. In the past, the only way to find employment, for most individuals, was to be hired by a company near them. While relocated for a job was an option for some, the cost of doing so was prohibitive. Most companies didn’t consider offer relocation expenses for new hires unless they were mid- to upper-level management.
Now, more than ever, individuals can find steady employment as a remote worker, earning the same salary as before, significantly more in some cases, by working from home. Their jobs didn’t change, but how they got to work did. A decent computer and a steady Internet connection are all they need to ‘show up for work’ each day.
Companies are always looking for an inexpensive way to do business. For many enterprises, man-hours are a key factor in calculating overhead. Although outsourcing doesn’t eliminate labor costs, it does reduce it. Factor in employees eliminating the cost of commuting, paying for parking or tolls and buying clothes to adhere to a company’s dress code, and you’ll get the same employees for less. For example, a marketing account manager who saves $500 per month by not being forced to ‘go to the office’ every day will take a pay cut in order to work from home. He’ll save money, which transfers into remote employers saving money as well.
Contractors from less developed countries are bountiful. They normally have education and experience equitable to what companies are looking for, but for wages that severely undercut 1st world countries. Imagine being able to hire a software developer for 10% of the cost of hiring locally. Same education, same experience, but with significantly less overhead. Outsourcing is simply cost effective.
Imagine not paying matching contributions to the IRS, Medicare, etc. Imagine not dealing with unions. Imagine not being forced to pay for benefits for full-time employees (contractors). Imagine eliminating an entire department that deals with all the above. That’s the kind of tax breaks and other benefits you can expect by hiring outsource professionals.
The IRS 1099 saves everyone money – contractors and clients alike. Sure, you’re still liable for all the other taxes you need to pay. However, not paying matching contributions is a real boost to your capital cash flow.
Using outsourcing as an infrastructure resource saves you money, time and headaches. You can now hire an entire army of contractors without jumping through legal hoops to get there. Hire, pay the invoice, and you’re done. If you’re looking to expand your business but don’t have the budget to hire full-time employees and pay for everything, then outsourcing may be right for you.
Contact Sidago Integrates Solutions today for your free, no obligation consultation. We have many contractor areas to choose form. If you don’t see the type of contractor you need to run your business smoothly and cost effectively, tell us – we’ll find the right contractor for you. It couldn’t be any easier, or more cost effective.