Why Saving Money by Outsourcing Does Not Mean Compromising Service

Research shows that outsourcing your customer service can save you up to 60% in operating costs. Based on statistics, companies can expect to save between 50% and 60% of operating costs when they outsource their staff. That is why companies resort to this solution to lower their expenses. 

In the proper context, using outsourcing is a fantastic way for small business owners to increase efficiency and improve the outcome of their businesses. Many of them rely on it to reduce labor and business costs by focusing on core aspects of their business and working with well-proven specialists. 

The most significant benefit that companies derive from outsourcing is that they can save money. One of the first things companies new to it is asking about is how it will lower costs. Learn more about how outsourcing improves your services and helps you save costs by reading further.

How Outsourcing Improve Business Performance and Save Costs

Outsourcing is generally when a company decides to appoint internal business processes to a third party. It means transferring various organization activities to an entity that specializes in providing services. Many organizations have been saving costs by outsourcing software development and IT services to offshore locations.  

Offshoring, also known as offshore outsourcing, means allocating IT services to a remote location that benefits from lower labor costs, favorable economic conditions, time zones, and a bigger talent pool. When choosing this type, make sure to look for people and services compatible with your business needs.

Companies that opted for outsourcing solutions may take advantage of the difference between labor and production costs in other countries. By comparison, if you move to the Philippines or India, the hourly cost of doing business can range from $8 to $25 an hour, including rental, salary, benefits, utilities, telephone charges, and Internet service. 

Here is how outsourcing can help you save costs while improving your services:

Streamlines Your Business Operations

Outsourcing enables companies to access the latest resources and advanced technologies that are not available to them. With this, they can process smoothly and improve their efficiency. 

Moreover, by engaging your customer service chatbots through outsourcing, you can streamline your support processes and workflows, enabling your business to reduce costs without compromising quality. 

Improves Your Services’ Quality and Reliability

A specialist task force and an account manager come together when you decide to outsource. The former serves as the single point of contact for the outsourced tasks, manages service delivery, and helps you establish, review, and measure KPIs to ensure that your business strategies are met. 

In addition, access to expert knowledge and unique skill sets without having a costly headcount makes outsourcing popular to most businesses. 

Enhance Employee Output and Allow You to Focus on Critical Tasks  

Another benefit of outsourcing is that it improves business. It also enables management to direct staff energies strategically, reducing the fire-fighting behavior or emergency resources allocation due to unforeseen circumstances, making them more efficient. 

There are roles, too, such as HR managers, PAs, and procurement persons whose tasks may not require a full-time position, so it is better to outsource to BPOs to avoid a combination of inefficiency and unhappy employees. 

Makes More Fund Available for Core Business Activities 

There is a high chance that outsourcing solutions will get the job done faster, cheaper, and better because it is their expertise. Its costs are almost always less than what you pay for in-house staff to do the same job. 

For instance, it may only cost you ⅔ of the price of an in-house headcount but will provide you better service through well-established supplier relationships and contractual KPIs. Moreover, outsourcing does not require internal sources, equipment, IT, HR, and training. 

Ensures Predictable Costs

With outsourcing, you can reduce costs without compromising goods and service quality. It allows you to take advantage of economies’ comparative costs of scale prevailing in other regions. 

Moreover, it contributes to globalization by favoring customers with cheaper goods and services, reducing unemployment, ensuring economic expansion, and boosting job productivity and creation. 

Knowing how outsourcing works will help you decide what areas in your business need it. It can be a managed project where all you need to do is define and brief them about the project scope instead of paying a huge cost for a team on a per-hour basis.

Over time, it has developed into a long-term cost-cutting measure for companies that want to remain profitable in times of economic difficulties. As business conditions deteriorate, companies start outsourcing more services to highly skilled third parties.

More than that, outsourcing solutions will ensure that you have a robust communications infrastructure that is essential for the daily running of the offshore team and a contingency plan that will help you in times of crisis. 


Choosing a suitable outsourcing solution is the key to successful offshoring of some areas in your business. Make sure that they are in sync with your goals and committed to assisting you to attain them.

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