Outsourcing is becoming increasingly popular as companies seek to cut costs and find the best skilled labour. This can be done on a global or national level. Global outsourcing is defined as the outsourcing of a process to another country, whereby the Definition of outsourcing also includes outsourcing to a third party within the country.
For example, a company operating in the Philippines can hire employees from the same country. This applies, for example, to projects where the local language is required.
Cost savings are the main reason for Outsourcingas it enables companies to reduce operating costs and increase efficiency. In addition, the Global outsourcing Access to a larger talent pool and specialised expertise.
Outsourcing strategies
Which types of companies can benefit from Outsourcing benefit? Here are a few points:
- Start-ups
- Large companies
- Large corporations
- Small and medium-sized enterprises
This means that almost every company is affected by Outsourcing benefits.
Areas that benefit from outsourcing:
- IT sector: IT support and software development
- Customer service: This is one of the most popular areas to be outsourced.
- Healthcare sector: This department is also outsourced, but more for administrative and customer support purposes
- Production: Handling of production and quality assurance
Globally outsourced tasks:
- Information Technology (IT)
- Human Resources (HR)
- Customer service
- Production
One of the most important reasons for Outsourcing means cost savings and the special skills of the employees. The Labour costs in the Philippines, Slovakia and India are extremely low and therefore ideal for Outsourcing.
What are the disadvantages of outsourcing?
Communication problems: There can be problems with communication. Some reasons for this are cultural differences and different time zones.
Problems with quality control: Outsourcing can lead to problems because there is no direct supervision and control. There is a risk that the quality of the tasks performed will not meet the company's standards.
Security risks: Outsourcing can entail certain security risks because the external outsourcer could use systems or processes that do not have the necessary security.
Outsourcing: Which are the most popular outsourcing countries and why?
Which countries are the most popular for Outsourcing? Here we list some of them:
- Slovakia
- Philippines
- India
- Poland
- Brazil
Why are these countries so popular for outsourcing? These are some of the most popular Outsourcing countries and the reasons why they are:
- Slovakia is popular because it is very close to Europe and Europe is a major outsourcing location. It also has a skilled labour force, a similar culture and low labour costs.
- The Philippines is a popular country for outsourcing because the labour costs are among the cheapest in the world. The Philippines also has a very flexible labour market - many employees are qualified to work for international companies and speak English.
- India has an extremely high number of IT specialists. As there is a shortage of IT professionals, they are needed more than ever. India also has low labour costs. They also speak English.
- Poland is ideal for outsourcing as it also borders Europe and has a similar culture. Labour costs are also low.
- Brazil has very low labour costs and is close to the USA - the world's largest outsourcing country. English is also spoken there.
Temporary Employment International as an Outsourcing Partner
We have already summarised some of the benefits for Outsourcing and the Outsourcing risks mentioned. It is clear that companies are Outsourcing and that it is the way forward. The Outsourcing costs are always lower than the costs incurred in the companies' countries of origin. This applies in particular to first world countries.
As a partner of the Slovakian governmentg we support our customers with Outsourcing and investments to Slovakia. We are a partner of Slovak Agency for Investment and Trade Development (SARIO)a state investment promotion agency of the Slovak Republic. We also co-operate with the Investment Support Association (ISA), whose members support us with their expertise. We offer our customers our complex and customised services, which include (but are not limited to) support in relation to the following:
Temporary Work International deals with employees from all over the world on a daily basis. We already have the cultural connection that companies need for Outsourcing need. We can help you to outsource better:
- Outsourcing and understanding cultural differences
- Save costs
- We accompany you through the entire process
- Expertise of over 20 years
Contact us today and we will be happy to help you!
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