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Which Of The Following Is The Primary Reason Why Companies Outsource

This article will discuss the main reasons that companies choose to outsource their labor force to labor providers like OnDemand and Konica Minolta.

A Konica Minolta Sales executive will help you to explore the particularity of his company's cost containment, risk prevention, and high-quality employees, which will create an appealing brand image.

The following discussion, which concerns the types of employees that are outsourced and the benefits to the companies, will be based on an interview with business development manager Jay Chang of Konica Minolta Singapore, who would like to tell us more about his company and its businesses in the area of solutions and services that encompass the digital process in Singapore.

The following issues are thoroughly analyzed by Chang:

How are the human resources in Singapore compared to other locations?

photography of people inside room during daytime

"In today's world, people's purchasing power is rising. At the same time, companies have to deliver faster, with more efficiency. '

This brings the companies into a dilemma, as the labor providers must always keep up with the increased demands of their clients to maintain their attractiveness.

The manpower market has now become the most competitive business environment, because, to be able to differentiate themselves, many companies resort to outsourcing because they can deliver a quality product at a much faster rate.

Our agency with a proven track record is a clear example of the fact that we can bring the client satisfaction rate to an optimal level.

We employ 30,000 staff in more than 65 countries, proof that we are a team that can meet any challenges that a client may face. Our clients choose us for our flexible options, affordability, and our amazing people.

  • Our competency in specific market sectors like IT, manufacturing, retail, hospitality, insurance, architecture, engineering, finance, and more
  • Our own services including recruitments, payroll management, transport, rentals, and security.
  • A very diverse pool of engineers, designers, and specialists for digital process automation.
  • Affordable labor price

And most importantly, we are located here in Singapore, which makes us the perfect solution for our clients.

And not only that, we are certified and licensed by the Ministry of Manpower in Singapore. We have in-house corporate training for our employees, covering HR, security, and business compliance.

We also have our own customer service, thus, we always provide a 24/7 service to our customers.

Why should companies outsource?

two woman looking at laptop screen

I think that the most common reason that companies outsource their labor force is the following:

Some companies have limited resources, and thus they have to use labor-intensive processes such as temporary staffing.

In such cases, if a company is relying on the traditional hiring process, then its resources will inevitably be exhausted, thus leading to a situation where a company will have to resort to a traditional hiring process or pursue a lean strategy, whereby its resources will have to be mobilized at an earlier stage and as a result, there would be limited resources for implementation.

Companies outsource because they have outgrown their traditional resource. For example, a factory owner may outgrow the skill level of the workers he hired, or if the clients demand increased productivity, the factory owner will have to hire more people.

The same scenario can be applied to a logistics company, where they may have to increase the number of their drivers to fulfill the increasing number of their delivery orders.

Hence, some companies have found that the traditional labor force is no longer able to sustain their customer satisfaction level.

Is it profitable?

Well, if you are thinking about saving money and being able to deploy more of your resources on the most efficient of your projects, then you are mistaken because the optimum approach in terms of cost is to optimize the amount of time that is spent on each project.

You must assign the right resource to the right project in the most cost-effective way. And in most cases, you will be able to achieve that by outsourcing.

What are some of the benefits of outsourcing?

woman placing sticky notes on wall

Outsourcing is much cheaper than keeping on hiring a human resource agency. Besides that, companies who outsource their labor force also retain an asset, that is, the workload that their existing workforce can carry.

Most of our projects need several tasks to be carried out by several employees. In such a case, when a company is not able to hire all the employees they need, they can outsource the work to us.

Hence, a company can save money, while taking care of their in-house employees and our manpower service.

Outsourcing makes it possible to expand your company most cost-effectively. Due to the characteristics of our talent supply, we can offer almost unlimited capacity for deploying our staff.

Companies will have a very high probability of finding the perfect candidates that match their business needs.

Because we are owned and operated by a professional management team, the company can provide highly competitive pay packages to our employees.

We are committed to our employees and their growth, and so we are offering competitive salaries. And because we are licensed by the Ministry of Manpower, we can provide all the necessary benefits to our employees.

Outsourcing improves the quality of our services. As a typical team of specialists is small, we can respond to a large number of orders in a short period of time.

Outsourcing improves the overall productivity of our staff. We know that when a team works efficiently, then it has the ability to provide excellent services.

Outsourcing helps in reducing operating costs.

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