light bulb 2
light bulb 2

Why Outsource – 7 Answers to the ‘Big Question’

Today, Derek and Arnold will talk about why companies should outsource. They shared their insights and first-hand knowledge regarding outsourcing and focused on seven reasons  why companies should consider outsourcing to the Philippines.


  • Outsourcing is sometimes called offshoring but it is well known by the term BPO.
  • First, According to Cal Newport, “any work that can be done by someone that can be trained to do that job in a week or two should not be done by you”. This is mainly about creating a more efficient and productive way of doing things.
  • Second, if you choose to outsource, staffing and labour costs are a lot cheaper. You can cut salaries up to 50%
  • Third, 24/7 coverage for a cheaper cost resulting to quicker response rate when it comes to answering customer queries.
  • Fourth, it provides the owner additional skillsets that might be quite difficult to develop by themselves.
  • Fifth, The Philippines also has access to specialist’s skillsets. Good examples are VA’s and contact centers. Freelancers are also increasing in number these days, like in Upwork and Freelancer.
  • Sixth is that if you have a company servicing the UK then you are stuck in the UK. Having said that, servicing the US at the same time would be a crazy leap. Whereas, if you develop a significant operational hub in the Philippines then it’s not big a step if you create another executing hub in the US. It is almost a stepping stone towards internationalization of your business.
  • Seventh, Outsourcing forces you, as a business owner, to go through a maturation of your company processes.

Key Points

  • Outsourcing, not only cuts a company’s staffing cost by more than 50% it also gives companies the opportunity to reallocate their savings to more important functions of their company.
  • Outsourcing allows companies to gain the upper hand from their competitors. Since they can enjoy 24/7 coverage for a cheaper cost resulting in quicker response rate when it comes to answering customer queries.
  • Outsourcing allows company owners to learn new skills that they normally would have the difficulty developing on their own.




Expand transcript

Suggested podcasts from OA

May 8, 2019

Today, I am being interviewed by Silvia Christmann of the Dnx podcast and I obviously get to speak my mind…

April 22, 2019

In this episode, I was being interviewed by Marc Guberti of Breakthrough Success.  During the interview, I have shared my…

December 6, 2017

In this podcast, Derek is joined by Michelle Fiegehen, an Australian who is based in Cebu.  Michelle owns and founded…

September 22, 2017

Derek will talk about module one of the activation consultation. It is about laying out the framework for outsourcing. Also,…

James D. has submitted "3 free quotes"

Start Now

days ago.