A great businessman once said “Data don’t lie” and I agree. Except there are superseding or prevailing evidences to diminish the credibility of a particular fact, current or latest data or statistics stands sure. We could proceed by throwing out here the benefits of outsourcing and make it sound great. But to aid business owners arrive at a logical and informed decision with respect to whether or not to outsource, data is requested. Hence the putting together of this article; to provide you with evidence, facts, pointers on why outsourcing is necessary for your business growth and globalization.
Following Deloitte’s 2020 Global Outsourcing survey, we see below that cost reduction is still one of the reasons or objectives to outsourcing. While in its 2021 survey, we see that Process efficiency and standardization has taken over cost reduction (1).
Based on the chart above, about 70% of interviewees agreed or indicated that cost reduction is a primary focus for outsourcing. It is safe to assume that the pandemic in 2020 played a major role in this. A large number of business owners rely on numbers more in determining business growth and transformation. It is not surprising that cost reduction tops the list as the major outsourcing objectives.
The year preceding the pandemic, Clutch released result of a survey carried out (clutch’s small business BPO survey 2019) which revealed that small businesses focus on the increase in efficiency when considering outsourcing.
From Clutch’s survey, about 24% of businesses testified that they were able to manage more projects, as well as retain clarity and quality of their business. We would discover that there was a switch between 2019 to 2020; while the focus was concentration on business core in 2019, the focus in 2020 was to reduce cost. Either way, both reasons pose huge benefit to every business and enables them scale up, remain competitive and eventually, improve their services.
NIGERIA AS ONE OF THE TOP AFRICAN OFFSHORING DESTINATION AND LONGETIVITY OF THE INDUSTRY
Nigeria, one of the Africa’s most populous countries with approximately one sixth of Africa’s population(2) and 50% of West African population has become a fast-growing hub for offshore outsourcing. Language might have played a role in this. With English language has the major official language in Nigeria(3) and over 50% of Nigerian population proficient in English(4), little wonder why the offshore outsourcing industry in Nigeria is on the rise. Nigeria has got a high standard in terms of education with about 62% literacy rate(5) and about 600,000 people graduating from the university yearly(6).
As a formal former British colony and with a westernized culture, Nigeria is a perfect fit, culturally, for offshore outsourcing.
With the increasing and evolving nature of technology and infrastructure, particularly in Nigeria, businesses intending to grow and remain competitive in the global market are encouraged to latch on the huge advantage and benefits that offshore outsourcing in Nigeria poses. It has indeed become a major tool for business growth strategy and it has come to stay. Organizations like TeamSource are clothed with the necessary resources in terms of manpower and technology to deliver such services.
Reasons why you should build your team with Us: https://demo.teamsource.net/2022/02/10/build-your-teams-with-teamsource/
(2). Omoju, Joshua O. (2017) “IT Services Offshoring to Africa: Assessing the attractiveness and readiness of Nigeria, The African Journal of Information Systems: Vol. 9: Iss. 2, Article 2. URL: http://digitalcommons.kennesaw.edu/ajis/vol9/iss2/2
(3). Campbell, John. (2020) “Nigeria Making its mark on the English Language” https://www.cfr.org/blog/nigeria-making-its-mark-english-language#:~:text=Though%20English%20is%20the%20only,or%20some%2020%20million%20Nigerians
(4). Cudoo (2017) “Which countries have the most English Speakers” https://cudoo.com/blog/which-countries-have-the-most-english-speakers/
(6). Ukazu, Ijeoma. (2021) “Unemployment: Too many graduates fighting for too few jobs” University World News, Africa Edition https://www.universityworldnews.com/post.php?story=20211113143735211#:~:text=Each%20academic%20year%2C%20universities%20and,the%20country%2C%20Vanguard%20Media%20reported.