Trade Resources Economy The Importance Of Outsourcing To China

The Importance Of Outsourcing To China

1.9 (31 Votes)

Often times companies, institutions and organizations either become swamped with work or do not possess the resources to carry out the work efficiently to their taste. Whatever the reason for branching out, outsourcing is mostly a good idea. It offers so much benefits and it is a good means to improve a company’s productivity and output, hence it is greatly encouraged. However, we cannot begin this piece without briefly highlighting what outsourcing means, especially in today’s market. Let’s begin shall we?

Outsourcing, what is it?
Just as you employ people to fill in various positions in your company. From cleaning to managerial positions, to sales, and others, outsourcing is about that and so much more. It’s about having access to world class products and services from any region in the world. It could be regional or international if you so please. It depends on the job description and your company’s preference.
Now, China is one country that hosts one of the largest percentages of outsourced clientele in the world. It is ever growing. From manufacture to IT services, Call centers and even distribution, its numbers are really commendable. One would think this is because of their competence which is of high value by the way, but it’s mostly because of their impeccable customer service and reviews this country has. Presently, China is the central hub for fabrication and manufacture of diverse products from gadgets to clothing and appliances. The country covers all the major areas. Now that we’ve established China’s stance, let’s move ahead to highlight the general importance or advantages of outsourcing.

Advantages
If you’re looking to outsource or venture out with some of your company’s work load to another institution, China has a lot of B2B enterprises that are for this sole purpose. However if you’re looking for that extra push or bit of information to fully convince you, here are the advantages of outsourcing you’re company’s internally generated work.

1. Saves cost
Having done your analysis on the budget of your company’s expenditure, sometimes it’s actually more economical to explore the option of freelancing than that of incurring the expense of in house services. In essence, outsourcing to companies in China, India or other Western countries could be more economical than carrying out the work yourself. This is because it reduces the cost of hiring, training and proper work execution. With respect to outsourcing, lower cost doesn’t mean less quality. You can pay less for much more, outsourcing has provided that on a good slate. It saves companies, firms and institutions the expenditure that would have been incurred if they chose to do the work within their walls. This is a very effective way of saving money while having access to quality products and services while controlling costs and releasing the company’s capital for other ventures like marketing and investment

2. Efficiency promotion
Outsourcing increases the general productivity of the institution which in turn promotes its efficiency. This is through the years of amazing experience this provider serves you as well as the direct focus bestowed on your product/service description. These providers are tasked with just one responsibility, delivering to you. Hence they make it their sole priority. Besides, outsourcing grants your institution ample amount of time and resources to conserve for other purposes. Thus increasing the amount of internal work properly executed in your firm per day. Outsourcing also encourages diversity in the workforce. These providers may be of different nationality and outsourcing brings different types of expertise to the table. With all of this working together for your company, efficiency is a sure thing.

3. The difference in time zone
This is a major advantage. Mother Nature has made different countries run on different times. It can be day time in your end while it’s night in another end. Hence outsourcing gives you the luxury of having people work for you while you sleep. You can send in a job description at your convenience and have it delivered in a few hours due to the difference in time zones. It offers the adva

4. Reduced internal risks
Outsourcing reduces the occurrence of internally generated risks which most businesses are susceptible to. These risks include market fluctuations, government induced alterations, changes in technology, and even the risk of competition. These providers operate in different locations, with different governments and under different time zones. This makes them immune to whatever crisis is going on in your country and gives your business an unwarranted advantage regardless of whatever is happening in your own country.

5. Time management
In business, time is money. You earn based on the amount of hours you put in or the amount of hours you work, so saving a few hours on work ultimately saves you a lot of money. Outsourcing gives your business the benefit of managing time in accordance with the business’ resources. There’s no need to carry out the jobs you have outsourced, hence your business can save that time and channel it towards other sectors. This action maximizes productivity while saving the company from any risk that could have been incurred.

6. Generates more profit
These service providers definitely offer more for less. More value, more quality at a less price. This gives your business the ability to rise to make more profit based on the value of the provider’s work. It creates room for monetary increase within the business and ultimately increases the GDP.

These and many more are the benefits and importance of outsourcing. However, it also has some disadvantages which could be eliminated depending on the job description and the terms and conditions infringed on the provider. These advantages include:
• The concept of confidentiality is somewhat limited
• Instability on the provider’s end
• Managerial difficulties on the provider’s end

These disadvantages can be easily resolved with the right contract. In essence, outsourcing may be the boost your company needs and what better country to do that than China.

Source:
Contribute Copyright Policy
Topics: Service