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Cost-cutting

Definition

What is Cost-cutting?

Cost-cutting refers to measures done to reduce costs while increasing profit. Businesses look at their expenses and seek ways on how they can improve their spending. 

The definition of cost-cutting may come in the form of downsizing to a smaller office, closing down branches, or laying off excess employees.

Cost-cutting does not always mean that a business is failing. These measures apply to any stage, whether they are starting, expanding, or already maintaining their size. 

Usually, entrepreneurs who cut their expenses aim to increase their savings and profit since they have limited cash flow.

What is Cost-cutting?

Cost-cutting strategies

There are different ways to cut costs, such as bartering and finding alternatives to availed services, finding a lower office space with better amenities, and going digital. Business Process Outsourcing (BPO) is also a good way to save costs without sacrificing service quality. 

India and the Philippines, the most popular outsourcing destinations, offer a wide range of services at a fraction of the cost versus hiring in-house employees.

Cost of hiring a BPO

Hiring a BPO provider can totally transform a company’s revenue and free up working capital. However, the total cost of outsourcing varies depending on each job function and location of the outsourcing company. 

Outsource Accelerator helps you save up to 70% on costs compared to developing a fully-staffed in-house department. It covers all the expenses needed in setting up a team — such as office space, equipment, and tools — so that you do not have to worry about those things anymore.

Employee salaries, benefits, onboarding, and training are also managed already. The only thing you need to think about is the tasks that you want to delegate to your offshore team.

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About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 450+ podcast episodes, and a comprehensive directory with 4,000+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.