Posts Tagged ‘Outsourcing’
Why Do Companies Outsource?
As a business, you need to learn about the best means for your company to advance in today’s business market. Right now the global industry is getting so intense and competitive. We are always looking for creative ways and new strategies to accomplish more of our business goals for less money. Managing employees also comes with its many challenges and expenses. One of the options you have is to outsource some of your work. Outsourcing is one of the best strategies that can help you save money in minimizing your manpower related expenses.
For those people who are not familiar with the term outsourcing, it is the method used in hiring employees in a different area or country to do the work expected from a regular staff. This means that the staff could be living in the Philippines while the company that he/she is working for is situated in the United States. The outsourced employee will be given tasks just like an ordinary employee. The best part about outsourcing is the convenience in finding the right employee and not incurring other costs while doing so.
Here are 3 reasons why companies outsource:
Reduced overheads – From office space to computer equipment and business running costs, you’ll save on them all.
Reduced staff salary – Most companies’ biggest expense is labor. If you have staff you’re paying for productive time and downtime. All those coffee breaks, lunch breaks and chats by the water-cooler add up, and that’s before paid vacations and sick leave. And if you want your staff to keep up to date with the latest technology you’ll need to invest in regular training, recruiting and retaining employees.
Increased revenue – Add up the savings on overheads, staff salaries etc. and you’ll quickly discover that by outsourcing your administrative and secretarial tasks your bottom line will increase.
For companies looking to minimize expenses and saving money, outsourcing is truly one of the best solutions on how to grow your business. You should learn more about it by visiting websites that contains in depth information about this subject.
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Outsourcing Global Statistics
Zylun's Cebu Office Building
By now it should be obvious that outsourcing saves corporations time and money. However, it is helpful to examine global trends and statistics regarding outsourcing. Despite the recent global recession, outsourcing has grown by 4% in 2009, with an average annual growth of 9.7% since 2005. Not only is the industry growing rapidly, but the market value is over $580 billion.
Outsourcing is divided into three categories: Information Technology Outsourcing (ITO), Business process outsourcing (BPO), and Electronic Data Processing. ITO makes up almost 50% of the market, BPO makes up about 43% of the market, and EDP makes up the remaining 7%.
The outsourcing outlook for the coming years looks promising. As the world emerges out of the global recession, the outsourcing industry will return to higher growth rates. According to Datamonitor, the market will grow 5.4% in 2010, and 7.2% in 2011 with $660 billion in revenue by the end of 2011. By 2014 it is expected that the market value will be around $875 billion with 10% growth!
A great majority of industries have experienced declines in market growth due to the current global recession. Outsourcing has not been immune to the economic downturn we have been facing, but it has not stopped companies from implementing outsourced processes into their business. Because of the significant savings that outsourcing offers, companies are able to stay in business by outsourcing.
If your company is considering business process outsourcing services of any kind, including information technology, consider this; the outsourcing services industry is not showing any signs of slowing down. Many other corporations are outsourcing to save money and improve the bottom line, so why shouldn’t you do the same? Whether you are a small, medium, or large corporation, contemplate the pros and cons of outsourcing and give it a try.
Benefits of Zylun Staffing
Zylun’s mission is to provide American quality labor at offshore prices. Zylun delivers cost effective, enterprise level offshore staffing solutions focusing on Live Chat, Web Services, Design and IT. We help companies grow profit ability by increasing work output and
reducing payroll costs. Most clients experience savings of 50-80%.Often times when you hire an outsourced employee they work from their basements, or sub-par office space. You have no idea whether they are working or not. This is not the case with Zylun Staffing. With Zylun your employee will work 40hrs a week and our experienced management team assures the quality and quantity of their work.All employees work from Zylun’s Enterprise level Class A office space in the Philippines. Zylun offices have full-time security personnel and monitoring. Employees are not allowed to bring in outside hardware such as USB drives or memory devices. Non-Zylun employees are not allowed within the Zylun offices without management approval.Workstations include computers, Windows XP Pro or 7, OpenOffice, high-speed internet, Skype, basic headset, and web cam. All computers are high quality PC computers using XP or Windows 7. Zylun provides your employees with all of the basic needs. If you need a Mac computer or more advanced configuration for your teams we can customize a computer or purchase a specific model, however the extra cost will be paid by your company.
Excellent Labor Force
Zylun separates itself from the competition by hiring the highest quality employees in the industry. We pride ourselves on our highly educated work force. All of our employees are college educated and speak great English. All employees are required to pass English speaking and writing proficiency exams. The Philippines is known worldwide for excellent English speaking and comprehension.
We have a world class management team running our Filipino operations. Zylun’s offshore management team includes both US and Philippine citizens who understand eastern and western business culture. This team participates in initial employment training that ensures that your employee has the skills, technology, and facilities needed to deliver the quality work product you need.
Cost
Zylun not only saves you money, but also saves you the headache of recruitment and paying benefits. Zylun takes care of your agent’s salary, taxes, health benefits, and all overhead costs. Zylun will also monitor attendance and ensure compliance to Zylun’s HR policies. Zylun offers all of these benefits for a fraction of the cost of hiring domestically. If you interested in receiving these benefits for your company contact Zylun today and one of our friendly employees will prepare a customized quote to meet your needs. You can call, email, or chat with us anytime. What are you waiting for? Contact us today!
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The advantage of outsourcing in Cebu vs Manila.
Manila has had a head start in the outsourcing industry compared to other parts of the Philippines. Mostly because of the infrastructure that was already in place. But now there are advantages that make Cebu the ideal place for all types of BPO’s (Business Process Outsourcing) and call center work. A highly educated workforce and great English abilities makes Cebu the best place for outsourcing.
IT dedicated zone
Local Cebu government has made it easier for foreign investors by reserving land specifically for IT services. The telecommunications infrastructure is now stable and with the majority of buildings newer in Cebu vs Manila. Tax holidays for IT services through P.E.Z.A registered companies allow companies to keep more of their revenue to scale larger and pass saving to their clients for several years. Realty Firms have also invested into these IT zoned areas to build quickly and coordinate the necessary infrastructure for large multinational companies to move operations to Cebu.
Natural protection from Natural disasters
Cebu is surrounded by different islands that act as a buffer from the worst tropical storms. Unlike Luzon, the Island Manila is located in, is located in the “typhoon alley” common in the Southeast Asia. Every year there during typhoon season Manila is affected. Fear of employees’ safety prevents them from arriving working, building damage incur losses in investment, and communications are rendered helpless in the weather.
City life to Island living
Although most call centers are located in Cebu City or neighboring cities, you don’t get the over population, traffic and pollution that exist in Manila. If you are stressed with the daily grind of work, you can always take a quick drive to a nearby beach and relax for the day or go to nearby island resorts like Bohol or world famous Boracay. If the weather doesn’t permit, you can always go to upscale shopping centers like Ayala or SM Cebu City and catch an IMAX movie.
Experts agree Cebu is the place to be
Although Manila might have been first, Cebu is becoming a city where the rest of the world wants to be for outsourcing services. Don’t take our word for it. According to the latest research conducted by Tholons, (they rank global cities on how well suited they are for IT and BPO services), Cebu City was ranked FIRST in a list of Top 50 Emerging Outsourcing Cities in the world which included cities like Buenos Aires, Beijing, Shanghai and Sao Paulo.
Cebu Skyline
Why Offshore Staff Leasing?
With the global marketplace becoming more and more integrated, companies of all sizes are competing for customers and market share.To compete with large corporations, small and medium sized businesses need access to the talent pool and cost savings provided by the global offshore workforce. These businesses can turn to traditional Business/Knowledge Processing Outsourcing (BPO & KPO), but these options are often limited to larger companies and don’t give businesses control over their work product. Offshore staff leasing is an attractive model for businesses that want the cost savings of offshore labor and still retain control of their work product. A few advantages of Offshore Staff Leasing include:
Cost Savings:
For highly skilled positions like programmers, designers, developers, and internet marketers savings can be as high as 80%. Savings on more basic positions like live chat, customer service, tech support, virtual assistants, writers, and researchers savings can reach 50% compared to domestic rates.
Simplicity:
Offshore staff leasing takes the pain, hassle, and cost out of hiring an offshore employee. The offshore employee is the legal employee of the staff leasing firm and leased to clients on a full-time basis. This means that the staffing company takes care of hiring, benefits, taxes, workstation, computer, technology and client can focus on maximizing the work product of their offshore employees.
Quality/Control:
In the staff leasing model, clients manage the work product of their offshore employees giving them control of the timing and quality of their work product. Clients are incentivized to invest time and resources to train and manage their dedicated offshore employees to maximize the quality of work product and long term development of their offshore team.
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