The Credit Card Companies Outsourcing to The Freelancers

The past years saw the fast emergence of global outsourcing as a thriving industry. As most already know, outsourcing happens when a company enters into a contract with another company that will provide services that can actually be performed by in-house employees. Call center services is one of the most popular of all outsourced jobs.

Most credit card companies in the US and UK do collaborate with India based call centers for several reasons: in the first place, renting an office in there is far cheaper than in a Western country and, in the second place, an Indian employee costs nearly a third of an American or British employee. It may sound ruthless, but, as business expert Andrew Sherman once said, in this world you may choose from to options: either die or grow.

Returning to our previous topic, e-mail services and payroll services are now being outsourced too. When a company outsources, it basically lets a separate company that is usually, but not necessarily, located overseas handle several jobs in their field of expertise, like the ones mentioned earlier.

Come to think of it though, trusting complete strangers to be at the forefront of your business seems like a risky undertaking. Outsourcing involves investing your money on a satellite office located at the other side of the world while counting on those strangers to perform their jobs well for the benefit of your business. So you’re actually treading on shaky ground. However, some of these countries that figure well in the global outsourcing arena have proven their worth that’s why companies entrust their businesses to them.

You might be thinking why do big companies feel the need to outsource to freelancers? Well, there are various reasons but the main one is that they have realized that taking their business elsewhere, particularly to other parts of the world, helps them achieve more for less. They have realized that bringing their business outside their countries is cost-efficient on their part.

These big companies don’t really bring all their business off-shore. They actually decide which projects or tasks to outsource, whom to hire for these tasks, how to manage the project, how to agree on payment terms, and how to achieve the desired results. That’s the reason why they make use of a third-party company to scrutinize each applicant and to sift through all potential workers.

India, Malaysia, Singapore and Philippines are some of the countries that benefit the most from outsourcing. Most companies in the United States and United Kingdom contract third party companies from these countries to perform business processes for them mainly because workers in those countries are able to do the work for considerably less money. Also, overhead expenses and maintenance of these outsourced businesses cost less in those countries. Company owners and executives attest to the fact that ever since they started outsourcing, only superior products and services have been delivered to them. They paid considerably less and yet outsourcing has given them better profit.

Another reason why most big companies outsource to freelancers or third-party companies is because outsourcing allows them to focus on the other aspects of their business since the usually meatier details are already taken care of by outside experts. Indeed, several studies have shown that company CEOs have discovered marked improvements in the way that their companies ran immediately after they turned to outsourcing. Most company executives have also discovered that when they started outsourcing a portion of their job functions, their companies became stronger and that pressure was taken off their companies.

So, if you too run your own business and want it to grow by leaps and bounds, evaluate all pros and cons and start considering outsourcing to freelancers.