How I Cut My Labor and Overhead Expenses by 70%
The unprecedented situation caused by the pandemic, coupled with continuing inflation and deepening recession, has caught many businesses in a cruel profit squeeze. A growing number of firms are trying to minimize costs as much as possible as they fight for survival. All-out inventory slashing and attacks on labor and overhead costs are very much the order of the day in most organizations.
We’ve got the perfect solution for business in the UK, the Republic of Ireland, Australia, New Zealand, the USA, the Middle East, and various other countries worldwide: Outsourcing to ADDMORE Services!
Outsourcing a chunk of your business’s processes to ADDMORE Services
is a clever choice, regardless of whether your business is well on its track to
becoming a multinational enterprise or a small startup navigating the perils of
an already crowded marketplace. Our expert BPO solutions providers are also
beneficial for those looking to expand their operations in cost-effective ways.
By outsourcing work to BPO companies, your company could do away with time-consuming and tedious tasks that might not be central to satisfying your customers. It’s a great way to cut as much as 70% on overhead expenses and labor costs.
However, tapping outsourced talents to grow your company rather than hiring an in-house team is a business decision that should not be solely based on how much money it will help you save. Here are a few factors that need to be considered before deciding the best way to keep the company running smoothly while simultaneously fostering tremendous growth.
Hiring In-House Professionals: Dealing with Larger Teams
Thy dynamics of running an SME while growing and sustaining an extensive talent pool are very different. If you expand your in-house team, be prepared to identify and tackle various challenges head-on.
Higher Labor Costs
From a purely business perspective, increased labor cost is one of the most obvious and demanding challenges that arise when new people are hired. The additional personnel could go a long way to enhance processes that improve productivity, but hiring more employees will significantly impact your profit margin.
Moreover, hunting, hiring, training, and onboarding new employees is a serious investment, especially for small businesses. Chances are, your business will feel the brunt of the additional salary to be paid for quite a while. Sometimes, the cost of hunting and hiring someone full-time with the right skill set and expertise alone can prevent your company from making the move.
Red Tape Bloat
Another disadvantage of hiring additional in-house employees, especially for startups, is how you will start getting bogged down with more responsibilities associated with the higher employee headcount. The responsibilities could include forming an HR department and investing in equipment, training, utilities, amenities, insurance, infrastructure, benefits, taxes, and more, all of which are additional overhead costs. Naturally, dealing with all the responsibilities could cause a further shrinking of your bottom line.
The Other option: Outsourcing to the Philippines
Keeping a watchful eye out for such issues could help you nip them right in the bud. If your company does not have the resources needed to hire, train, and evolve, it would be smarter to let us help you outsource work to professionals in the Philippines. Businesses that move forward with this option enjoy a lot of advantages in terms of work quality and savings. One of the top-rated outsourcing destinations offers business owners an array of benefits.
#1 Save Heaps in Wage Payouts
Compared to other destinations, the Philippines boasts a much lower wage range due to the lower cost of living. Businesses that outsource work to the Philippines can enjoy cost savings of up to 70% while providing the labor with a competitive, livable wage.
#2 Compatibility with the Western Culture
When outsourcing BPO services to a foreign country, you might have to contend with cultural differences that could have a detrimental effect on the performance of the particular business process. Language barriers, excessive religious holidays, aversion to work overtime, and many other things can become a fork in the road to success. You will not face any such issues when you outsource tasks to Filipinos.
Considering English is their primary language, they also have an excellent grasp of it. Filipinos are known for being hardworking and fiercely loyal. They take on every challenge to actively contribute to the company’s overall performance. Additionally, they are extremely amenable to shifting their schedule to suit the business’s home country, which means you do not need to worry about time differences impacting your work.
#3 BPO Firms Take Care of Outsourcing Professionals
As an experienced BPO company, we not only attract the best talent available but also make efforts to retain them. When you hire an offshore Filipino team, we will handle everything from HR to security, insurance, taxes, medical, legal, and more. You will not be burdened with the cost of providing essential employment rights and privileges or dealing with administrative tasks.
Ready to Take Advantage of the BPO Boom?
If you are interested in maximizing the profitability of your business by outsourcing to the Philippines, reach out to us right away to schedule a consultation. ADDMORE Services will cover the legality issues, company formation costs, utility costs, payroll, HR, and more. Just manage the team to retain control of their day-to-day tasks and enjoy substantial cost savings; leave the rest to us.
We offer a range of cost-effective offshoring and outsourcing solutions, including takeoff estimating services, quantity surveying services, BIM services, Revit design services, 2D and 3D CAD drafting services, construction project management, architectural drafting services, Primavera modeling services, and more.