Why Outsourcing Continues To Grow Dramatically

Outsourcing is the process of delegating a company’s business process to third parties or external agencies, leveraging benefits ranging from low-cost labor, improved quality efficiency, production and service innovation. Here at Pentwater group, we pride ourselves on delivering market-leading BPO services to help our clients set and exceed their expectations.

In the global economy creating successful outsourcing, partnerships have become an increasingly vital aspect of any company’s sustained development and growth. When making an effective business decision one must balance the pros and cons. In this short article, we will discuss why outsourcing is a win-win solution and an absolute must-have for any business.

Before we discuss the variety of transformational benefits that come with creating an effective outsourcing partnership let’s take the time to first acknowledge the cons.


Job Loss
First, let’s talk about the obvious one that most seem to have a problem with, developing countries are stealing jobs from western nations. While there is some truth to the statement that the BPO or outsourcing industry is taking away mundane lower skilled jobs from American workers another statement can be made that the existence of outsourcing agencies has created new specialized opportunities within western companies which we will discuss later in greater detail.

Cultural language barriers
Another general criticism that can be made against leveraging international outsourcing agencies is the difficulty to maintain quality efficiency due to the inevitable cultural and language barrier. Gaps in communication can result in devastating losses of time and capital expenditure which is why we at Pentwater group have decided to base our operation in the Philippines.

Unlike with other outsourcing hubs like India, Malaysia, and China, the official national language here in the Philippines is English. While other languages are spoken here also, English is taught in every school at almost every age. Since American colonization in 1898 western culture has become a deeply ingrained part of the Philippine culture.

Challenge of quality service
When hiring an outsourced staff to handle intricate details within your business there is plenty of risks involved when factoring employment failure. Thankfully here at Pentwater group, we handle the training and employment development for you. All we require are your needs and organizational goals.


The positive benefits far outweigh the costs in reference to outsourcing which is why the industry is experiencing exponential growth year after year; businesses benefit immensely from outsourcing. Despite the aforementioned critiques of the business model ultimately outsourcing as an industry works and has survived the criticism.

Why has outsourcing boomed in the Philippines?
As previously mentioned, American culture is deeply ingrained within Philippine society. Street signs, menus and education curriculums are all in English. Universities have created BPO specific coursework and curriculums which has catered to the country becoming the call center capital of the world.

More than one million Filipinos work in the country’s many call centers. The Philippines Isn’t the biggest outsourcing nation but has become one of the highest quality options. The Philippine society is flexible, respectful, courteous and willing to serve which caters to the perfect breeding ground for customer service centers. Due to the lack of quality opportunities, when you hire a team in the Philippines you receive maximum effort in the hours that you purchase.

Reduce Costs
The obvious benefit which occurs when launching an outsourcing team is the reduction in cost.
Companies have been known to save 60% on labor costs, outsourcing frees up capital which provides opportunities for companies to diversify their growth.

Outsourcing converts fixed costs into variable costs which can thusly be converted to market research, sales/marketing, and product development. Contracting with an offshore firm can provide cheap labor which is a matter of survival. Savings can help a business that is failing to avoid taking on additional debt and facing further financial strain.

Improved efficiency
The other primary benefit that you receive when hiring a call center or outsourcing agency is improved efficiency through specialization. If you hire an agency like ours for example that specializes in data entry and email marketing, you can only expect high-quality results that guaranteed a return on your investment. When you hire a team in the Philippines you receive maximum effort in the hours that you purchase.

Eliminate repetitive businesses processes
Outsourced jobs generally require low complexity and high repetition which is why the tasks can be completed with little training. Mundane tasks bog down any business, by eliminating them to an outside agency you provide more opportunities for specialization within your firm.

There is a reason why the outsourcing industry continues to expand exponentially year after year. Simply put, it is a great way to expand your business. Outsourcing is a great way to grow your company while freeing up your own time and saving money in the process. If you’re ready to finally leverage the growth of your business to its’ maximum capabilities, let the experts at Pentwater Group show you how to simplify and save through outsourcing.

Source: Outsource Accelerator, Why Outsourcing Is A Win Win Solution

5 Replies to “Why Outsourcing Continues To Grow Dramatically”

  1. If Companies don’t have expertise in a specific project or part of the project, they decide to outsources that part or project to the companies who are specialized experts in that field. That’s why companies go for outsourcing.

    Usually, I never comment on blogs but your article is so convincing that I never stop myself to say something about it. You’re doing a great job. Keep it up. Thanks for sharing a knowledgeable article. It takes a lot of time to write such a useful article. Keep it up.

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