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Outsourcing Workforce Solutions 101

By Magellan Solutions

Updated on April 30, 2024

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What do you need to know about Outsourcing Workforce Solutions?

It’s no secret that outsourcing is the best bet for a better value at a low price. 

Now that many businesses worldwide outsource their daily functions, it’s time to consider whether outsourcing your workforce may benefit your business and your budget. 

So you’ve decided to outsource. Where to go next? 

How to Start Outsourcing

Outsourcing is more than having offshore staffing lighten the load for you. Many businesses could not benefit from their outsourced staff simply because they made poor judgments in their outsourced functions and the provider they chose. 

To make sure you make the right choices from the get-go, it helps to do your due diligence. And take a closer look at your business and what it needs. 

No two businesses are the same. And it is always important to note that just because it worked for somebody’s company doesn’t mean it will work just as effectively for yours. Ensure you thoroughly evaluate your business to what you need so you know where to start looking. 

Employee Outsourcing

While outsourcing is often associated with call centers, you’d be surprised to know you can outsource many services. 

Employee outsourcing is acquiring staff through a third-party provider who often handles recruitment, hiring, and payroll processes and sometimes shares administrative duties of managing the team. 

Nowadays, with almost everything done online, employee outsourcing has become ideal for professionals and businesses alike, as it saves on resources like time, housing, utilities, and the like. 

This type of outsourcing has been a common choice for startups and small and medium-sized businesses, which are at their crucial stage in business – raising capital and building revenue simultaneously.

Employee outsourcing seems like a dream work arrangement for many. Most outsourced employees work remotely, while employers save on overhead costs by not having to house employees onsite. While this is a great setup, ensuring this works for your business needs is still essential. 

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The Perks of Outsourcing Your Workforce

Aside from reduced costs and having a partner provider to handle recruitment and staffing, outsourcing your workforce has many perks. 

1. Flexible work arrangements result in better employee performance

Back in the day, only employees in the creative industry were allowed to have more open, more fluid working conditions to get their creativity flowing. In employee outsourcing, employees often work remotely, under conditions they prefer, which makes them more efficient. 

Some arrangements include flexible shift schedules, which allow offshore employees to divide their time and use their most productive hours. This also encourages a better work-life balance for your staff. 

2. Have more time for more crucial areas.

Outsourcing your tasks gives you time to focus on more critical business areas. 

You can trust your outsourced staff to handle smaller tasks expertly while you tend to other parts of the business that need your immediate focus and attention. In the long run, this lets you cover more ground while saving time and resources. 

Plus, many outsourcing providers are responsible for ensuring smooth employee operations, which takes more tasks off your plate without compromising your employees’ quality of work. 

3. Reduces overhead costs

Being cost-effective is one of the most significant values of outsourcing. Outsourcing call center services or employees save much more than money if you look closer. 

Outsourcing employees reduces many operational costs, including recruitment, development training and exercises, housing, supplies, and more. Many businesses nowadays are shifting to remote work, freeing up a significant percentage of their budget for renting office space while maintaining good performance. 

But just because outsourcing is a cost-effective option doesn’t mean it’s cheap labor. Outsourced employees handle work as expertly and professionally as any in-house staff, minus the additional costs. 

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The Cons of Outsourcing Your Workforce

Just like any business service, outsourcing employees has its disadvantages. 

It is understood that we want the best investment for our business. When evaluating your business needs, it is just as essential to include the less attractive options to help you make the right decision. 

1. Legalities in location and privacy

Your offshore employees can come from any part of the world. Many cities around the globe have become hotspots for outsourcing many different services, with each territory having its terms and legalities regarding labor laws and practices. 

Depending on which country your headquarters are in, there might be limits on factors such as working hours, benefits, and the scope of work your offshore staff will be allowed to do for you. This might be an issue since every business is different. Still, good communication with your provider and a good background check on the legalities can ensure you get the best value when you outsource. 

2. Managing payroll and employee benefits

Like labor laws and practices, technicalities on payroll and taxes might be another thing to worry about, as it is just as different for every territory. Factors like exchange rates, compensation policies, benefits, and incentives work differently in every country. Noncompliance may be a severe issue for your business. 

The good news is that many outsourcing providers are happy to handle your HR and payroll-related concerns. They ensure your offshore staff receive the fair pay and the incentives they deserve. 

3. Cultural differences

Having offshore staff in many different parts of the world in many other cultures can make culture clashes unavoidable. 

While your offshore staff is always accommodating to your culture and business practices, make sure you extend them the same courtesy by taking time to understand and adapt to their culture for a better working relationship and clear communication. 

Outsource Workforce Solutions From The Best

With all the outsourcing providers in the market, it is easy to get lost in the reasonable offers and sweet deals. 

To maximize the value of outsourcing workforce solutions, check your business overall to ensure you know exactly what you’re looking for. 

Check for any weak spots that may need your attention and reinforcement. Once you know what you need, finding the best provider will be a breeze.

Get a provider who shares your vision and your goals. Find a partner in Magellan Solutions


Magellan Solutions is a Prime Outsourcing Partner in the Philippines

Magellan Solutions is a pioneer outsourcing provider in the Philippines. You are servicing small and medium enterprises (SMEs) from every industry in many cities around the globe. We pride ourselves on world-class call centers and other outsourcing services. An ISO-certified, HIPAA-compliant company, you can rest assured your data is secure with us. 

We offer a wide range of services, from phone answering services to lead generation to omnichannel call centers guaranteed to handle your customers expertly and professionally. Complete with the latest communication software and technology, enjoy smooth communications and top-of-the-line customer services with us. 

Let’s grow your business together. Talk to us here today!

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