Home Business How Outsourcing Service Business Survive the Pandemic

How Outsourcing Service Business Survive the Pandemic

by Olufisayo
Outsourcing Service

For the last 15 months, we have been in uncharted waters. The economy took a massive blow because of after the covid-19 hit our planet. Consequently, businesses have been experiencing financial difficulties today because, obviously, the seemingly effective marketing strategies are no longer effective due to lockdowns.

The economy has never faced a challenge that is way too intense because the COVID-19 cost the economy US$1 trillion last year. But some entrepreneurs did not falter and thought of another way to revitalize their business to survive this occurring pandemic.

One huge example of a business strategy that reached its pinnacle during a pandemic is outsourcing. Outsourcing is a business strategy that a specific company hires a vendor with specialization in different business functions.

Why is it an effective marketing strategy during a pandemic? Simply because it offers an economic lifeline.

A specified explanation on how outsourcing service business survives the pandemic is listed below. I do hope that at the end of your read, you will consider outsourcing services as a viable venture for your existing and following businesses.

       

How to Identify Reliable Outsourcing Service Provider

Before we run down to the list, let me discuss first how you should identify a reliable outsourcing service provider.

Nothing complex here, all you need to do is find an outsourcing partner that already has a track record of assisting businesses similar to yours because a great outsourcing transaction must always be transparent and reliable.

Before signing a contract of agreement, always find a legitimate license and credibility. Aside from that, care to research their ways and strategies and decide if it fits in your company’s standard.

1. You can reduce your labor, capital, and operating expenses.

Note that all factors in the list will be related to laundry and house cleaning services. Why? Because it is a great example where outsourcing services make a business survive and strive amidst the pandemic.

Also, due to the quarantine, many employees lost their jobs or have been working from home. Consequently, there will always be an increase in the demand for laundry and housekeeping services such as laundry pickup and delivery, maid service, and many more.

       

Labor costs are one of the essential expenditures in a business. Laborers are also a cause for a chain of spending because laborers need an operational office that costs money for building, power, and maintenance. Do not get me wrong, we are in a pandemic, and the reality of the situation is full-time employees are expensive for some companies.

For the laundry service and housekeeping business, having an outsourcing partner will significantly reduce your labor costs because sales attendants can be done at home, so you don’t need to hire a full-time employee. As a cherry on top, you can fully hire outsourcing partners that will do the clerical jobs online, and it will result in a lesser expenditure which is very pleasant to the ears for all entrepreneurs.

For capital and operational costs, when you hire a KPO or BPO offshore, you don’t need to upgrade a company computer, or better, you do not even have to purchase one. Why? Because outsource employees are supplied by either the agency or their own.

2. You can hire employees with different expertise at a lower price.

Outsourcing service providers help small and new companies access employees who seem to be expensive in a full-time hiring process. There are two outsourcing models: BPO (Business Process Outsourcing) and KPO (Knowledge Process Outsourcing). Each model has its benefits depending on what you need.

BPO offers employees trained and experienced to do most administrative and clerical jobs such as customer service, data entry, email management, payroll, and recording minutes of meetings. BPO employees are typically college-educated, English-speaking, and computer literate.

       

Meanwhile, KPO offers employees specific areas of expertise such as design, content creation, finance, IT, healthcare, and accounting. KPO employees are qualified professionals with experience and credentials who are willing to work with a lesser wage rate than your city’s minimum wage of certain professions.

As for the laundry service provider, you can hire KPO employees to do the accounting and finance and BPO for your inventory and customer service.

3. You will never experience a shortage of employees.

As an adequate response to the coronavirus, many countries have been experiencing lockdowns. The number of working hours and movement of the laborers are strictly restricted. But in the outsourcing industry, business is always open and never has been closed.

Regardless of the pandemic, outsourcing is pretty much stable and reliable. Outsourcing service providers are permitted to operate because the risk is minimal. Outsource employees became in demand because of that statement said above. Also, outsourcing agencies can offer 24/7 or flexible time schedules, so you do not have to worry if you are concerned about the timezone difference.

4. You can expect that employees are quick to adapt to changes in the market.

With the outbreak of a pandemic, the demand and supply for outsourcing employees are very high. Fortunately, outsource agencies offer flexible work contracts. You can hire as many or as few employees as needed. If you need to cut off some employees, you don’t need to worry about a separation pay.

       

Also, if an employee is not up to the company’s task, you can replace him without any paperwork or contract hassle. You don’t even need to worry about training and development because the employees’ outsourcing agency has them covered.

The coronavirus outbreak back in December 2019 caused a lot of financial damage and uncertainty in the economy. Instead of solving it short-term, why not look ahead and patronize a long-term one.

Outsourcing service is a long-term solution to the seemingly declining financial status of many businesses. You can outsource most of the tasks, whether BPO or KPO. A reliable offshore team can lessen costs, perform the same as a regular full-time hired employee if not better, and allows businesses to flourish once again.

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