Because of globalization, businesses now have an interdependent, mutually beneficial, and collaborative relationship with one another. Your business can overcome any challenge when you’re connected to healthy economic, social and environmental systems. And, these systems can be found in outsourcing.
Building Business Resiliency Over Time
Resiliency on an individual level is defined by Harvard Business Review as “the ability to recover from setbacks, adapt well to change, and keep going in the face of adversity.” This holds true for organizations as well.
Diane Cout, in her article “How Resilience Works“, identified three essential characteristics of resilient people and organizations. Each of them has “a staunch acceptance of reality; a deep belief, often buttressed by strongly held values, that life is meaningful; and an uncanny ability to improvise.”
Sustainable outsourcing is one way for small and medium-sized firms to build resiliency over time. The flexibility and adaptability of offshore service providers, the values they hold close to their hearts, and their ability to produce solutions seemingly out of thin air are among the many reasons why outsourcing is more than a cost-saving measure for businesses.
Managing the Triple Bottom Line
Without a doubt, outsourcing has been effective in cutting down costs. If this were not the case, then outsourcing would not have lasted for many decades as a business practice. But, cost reduction is not the only reason why businesses choose to outsource.
Sustainable outsourcing helps businesses manage their triple bottom line — profit, people and planet. Firms can easily manage their financial, social and environmental risks, obligations and opportunities. Companies that provide outsourcing services offer lower costs for labor and overhead. They also provide on-site management for your staff. And, they have technologies that you may not be able to immediately purchase in your country because of financial constraints.
Other managerial benefits of sustainable outsourcing include the following:
- Companies develop a more holistic view of business that supports innovation and ideas for improvement at all levels.
- Investing in training produce skilled, knowledgeable and engaged workers who perform consistently to deliver quality products on time.
- Collaborative partnership leads to improved processes and efficiency.
To develop a sustainable business and remain competitive, many companies chose to outsource some of the creative, analytical and administrative work to a knowledge process outsourcing provider. This allows them to concentrate on their core activities, such as client nurturing and financial management, among others, and to manage costs efficiently.
For Economic Growth and Social Equity
More than anything else, offshore outsourcing aims to achieve economic and social sustainability for all stakeholders. This is why governments of top outsourcing destinations like the Philippines and India funded the construction of technology hubs to support the needs of BPO and KPO companies.
Outsourcing companies benefit from sustainable practices. They create jobs in developing countries where a larger, college-educated and highly skilled workforce exists. When businesses outsource to these countries, they increase the purchasing power of their employees, which creates new markets for the import and export of goods and services.
Indeed, the outsourcing industry is well-placed to effect social and economic change in countries where foreign businesses have their contact centers. Many businesses increasingly prefer a managed services model for their outsourcing activities. This setup has the potential to empower offshore employees to lift themselves out of poverty and pursue higher education and financial independence.