Does Outsourcing really cut cost?

One of the major benefits of outsourcing is cutting cost within a business and we are sure you’d like to know how?

BPO companies have deep industry knowledge. This combined with the latest technologies helps them provide their clients with a pool of talented employees that guarantee an optimal solution for their needs. The outsourcing solution allows businesses to avoid large expenses and utilise their capital for growth investments. Outsourcing also gives businesses the power to spend a fraction of the price and at the same time, receive quality to get work done.

61% of companies across the globe revealed that amongst the numerous reasons why they outsourced, reducing cost was the top reason. See the  image.

Let’s talk real examples here, according to PayScale, the median salary of an IT Expert is about $50,000, with higher salaries reaching into the $70,000 and to $90,000 range. Taking into consideration that the it can be difficult to see which candidate can be able to perform the work you need, you can easily miscalculate the expectations and salary of your new hire adding to the total costs of hiring a new employee. A full-time employee would also expect benefits which the company would have to cater for adding more to the costs. CNN reported that a business can expect to pay 25 percent on top of an employee’s base salary due to these additional costs. Another example: A 2003 McKinsey Global Institute study revealed that outsourcing IT services reduced cost by 60% in the United States.

Still need more convincing? Here’s a study done in Australia that shows how outsourcing saved 46% of costs in 7500 public organizations.

Now that you know reducing cost is one of the many benefits for your company to outsource, Contact us and we will show you how BPO Zimbabwe can help your business thrive and stay competitive.