The idea of outsourcing was first popularized in the early 1700’s as a byproduct of Adam Smith’s ‘competitive advantage’ theory. Through the years, it has provided great opportunities for both businesses and individuals. Firstly, I will define outsourcing and discuss the different outsourcing benefits afterwards. Outsourcing is a business or company strategy that involves acquiring of resources or human resources outside the company or the country where a specific company is based.
In response to their varied needs, different companies hold different reasons for outsourcing. Internet marketing companies and manufacturing companies, who implement cost-cutting strategies, are the usual patrons of this concept. Outsourcing works for manufacturing companies whenever they need to look for countries that could provide them with the raw materials that they need at low cost. From such practice, they are able to gain more profit without diminishing their budget for materials. Meanwhile, web publishing or internet marketing companies are in search for cheap labor as they hire qualified individuals across nations for their job openings.
Cheaper wage is one of the outsourcing benefits for the employer company. For example, an
internet marketing company based in New York hires writers from the Philippines instead of the locals there. Surely, the company could save as much money because wage in the Philippines costs much less than the minimum wage in America. More so, Filipinos are skilled in English and are highly trainable. Hiring a New York native, then, would not make much difference from hiring an offshore writer. Well, the only difference could be your distance from the latter. That would be a huge disadvantage only if personal contact is a must for the job.
The positive effects of outsourcing do not only flow towards the employer company. Outsourcing is also advantageous for the people hired by outsourcing firms. There are a lot people who may be qualified for a certain job, but they do not have work because there are no job opportunities for their skills. Getting an outsourced job serves as a sure blessing to them. This instance shows a clear illustration that outsourcing is an effective business strategy for most companies offering SEO services and a perfect source of employment in countries hounded by job scarcity at the same time.
Going back to the manufacturing companies, they too outsource their jobs in the countries that supply their raw materials. Let us consider China. Basically, it is famous for its cheap raw materials and its booming population. Companies from bigger countries create jobs there by putting up a China-based branch. Along with the construction of their buildings, they will hire Chinese workers for its establishment and employees for the company operation afterwards. Employment rate then is expected to upsurge for the Chinese laborers.
Now that you are already informed of the outsourcing benefits after watching outsourcing training DVDs, it would be easier for you to decide whether to do outsourcing as a cost-cutting strategy for your company. But before making any major decision, you must think about it many times. As soon as you are decided, search for the most skilled people that you could find across the globe. You will definitely incur some training costs and wage expenses so you better invest on the people who could give you quality work or service. Apart from the extra profit and savings for your company, you are also providing job opportunities in countries suffering from job lack. As you fill an individual’s bucket of income, your bucket of revenue is filled in return. There are corporate social marketing activities out there that you might want to engage. But keep in mind, by merely outsourcing jobs you are already doing one.