Outsourcing: Connecting the people and the business

Outsourcing opens a new world of resource options when you consider how it could work for you and your business. Businesses globally save thousands on their labour and operation costs annually and recruitment expands on an international scale, not to mention what KPO or knowledge process outsourcing introduces in terms of potential skill to your team.

Over the past decade, millions of jobs have been created and filled in emerging countries thanks to traditional business process outsourcing. Outsourcing provides career opportunities to individuals at all skill levels, it boosts employment and therefore economies.

But is it bad for “our” economy?

Some won’t agree that outsourcing benefits employment and the economy, some will even tell you the complete opposite is true. Outsourcing does take jobs and career opportunities from local talent. This resulted in some rejecting the idea of outsourcing completely. But, labour is a driving factor for every economy, therefore, higher employee engagement and production is a great thing everywhere.

In the US, Americans are concerned about the immigration of workers and the emigration of Gross Domestic Product or GDP. Despite globalization and technology innovations, some professionals aren’t convinced that outsourcing can solve quality, operation and business logistic woes.

So, if outsourcing is bad for employment and the economy; then why are the numbers of outsourcing clients and businesses on an upward trajectory?

Outsourcing – the Misconception

Jason Rechenberg, OFFSURE’s Co-Founder said there are several factors to consider around implementing an outsourcing strategy. “Firstly the industry type, is it a manufacturing or an administrative space – the roles and tasks requiring resource within your business are relevant. With regard to employing locally or offshore, employment rates play a big part in what it costs you to resource your business day to day.  Low unemployment rates can create a premium on the cost to employ locally.”

“In the US particularly, there has been a misconception between the outsourcing and offshoring models.  People felt work was simply being taken offshore and big business were the only ones winning, when in fact offshoring is more about building a part of your team offshore opening opportunities for smaller business to also engage in this model and have success.” Jason explained.

“Offshoring or offshore outsourcing is all about building an efficient operation with your local and offshore team working as one.”

“There’s opportunity certainly in the US, Australia and Canada, as so many Western countries are able to leverage building an offshore team to grow their business, at home and abroad. But it will take education around some of the misconceptions held about offshore teams to change the perception for both employers and local teams.”

Small businesses and start-ups count

If you’re talking outsourcing and the economy, you can’t focus on employment rates alone. The number of small businesses and start-ups in a country need to be considered. In countries strong in outsourcing resource, start-ups and SMEs (small-to-medium enterprise) are also active outsourcing clients. Outsourcing is a way for these businesses to positively grow because they potentially struggle with resource costs locally.

Outsourcing helps businesses move forward. According to a statistical report by the Australian Small Business and Family Enterprise Ombudsman in 2016, “small businesses in Australia employing less than 19 people, accounted for 97% of all Australian businesses by employee size.”

In 2018, top business sectors in Australia include real estate, retail, health care and social assistance. All of these sectors are active outsourcing buyers.

Bridging the people and the business

Outsourcing or offshore outsourcing is all about helping people build their careers and also helping people build their business. There’s no doubt employment and growing businesses are sure to improve economies globally.

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