What is Outsourcing? Exploring Famous Outsourcing Companies in Vietnam

Outsourcing is becoming one of the most effective work management solutions for businesses. However, not everyone fully understands what outsourcing is and why it has become so popular. In fact, many businesses have adopted outsourcing to optimize their production operations and improve work efficiency. Many businesses have realized the significant benefits of using outsourcing. However, not all outsourcing providers have the capacity to fully support every business. Therefore, choosing the right outsourcing partner becomes a crucial factor. Let’s explore what outsourcing is and learn about the prominent companies in the outsourcing field through this article.

What is Outsourcing?

Outsourcing, or “contracting out,” is the act of a business hiring an external unit to perform tasks, projects, or produce products based on specific requirements. The hired companies or organizations usually possess a high level of expertise and provide top-notch services in their respective fields. This solution is often used by businesses when they lack sufficient resources or want to save on production and operational costs.

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The Benefits of Outsourcing for Businesses

Outsourcing brings numerous benefits to businesses, such as:

Cost savings

The primary advantage of outsourcing for businesses is cost optimization. For permanent employees, beyond salary, companies must also cover expenses such as social insurance, health insurance, unemployment insurance, personal income tax, and many other benefits. Additionally, when employees leave, businesses must start the recruitment process anew. On the other hand, using outsourced labor tends to be much more cost-effective than building a separate internal structure.

Increased efficiency

If a company handles all stages of work, from research, development, marketing to distribution, the overall costs will be significantly higher. This results in higher product prices, which can disadvantage customers. Meanwhile, leveraging the cost structures and economies of scale from external providers can give your company a competitive edge.

No need for recruitment

A typical recruitment process often includes many steps and requires significant investment in time, cost, and effort. By using outsourcing services, businesses can alleviate most of the burdens of recruitment processes. Simply reviewing the list of suitable services from an outsourcing provider allows you to easily find the support your business needs.

Focus on Core Values

Using outsourcing services for tasks outside the business’s core competencies allows you to focus on main activities, thus optimizing business growth more effectively.

Risk Mitigation

All business investments come with a certain level of risk. Market fluctuations, changes in government regulations, and rapid financial and technological developments all pose challenges. Outsourcing providers take on and manage these risks for your business. They often have the experience and expertise to make decisions that minimize risks in specialized areas.

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Commonly Outsourced Services

Outsourcing has become a vital strategy for businesses to optimize performance and focus on core tasks. Some commonly outsourced services include:

• Sales: Your business may face challenges with insufficient personnel or expertise in handling sales calls or setting up channels to close deals. Outsourcing these tasks to skilled individuals can improve business performance.

• Marketing: Hiring external marketing firms can help businesses grow and expand quickly and efficiently. These partners can handle tasks such as ad design, content creation, and strategy management on social media platforms, allowing you to focus on core internal functions.

• Accounting: Accounting is a popular area for outsourcing, especially among small businesses. Outsourcing to a skilled accountant ensures proper management of finances, reducing stress for businesses and ensuring compliance with accounting and tax requirements.

• IT Management: Information technology is one of the largest outsourcing industries. Hiring external IT management services or working with firms that provide on-demand technical support is a smart strategy. These partners can help resolve technical issues or implement new technical initiatives.

• Customer Service: For businesses primarily conducting online or phone transactions, outsourcing customer service to call centers or chat support is essential. It is crucial to establish clear procedures and provide detailed instructions for the outsourcing company that will directly interact with your customers.

Other services that are commonly outsourced include content writing, security, janitorial services, etc.

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Is Outsourcing Different from Offshoring?

Offshoring refers to carrying out work in another country. In simple terms, offshoring involves moving some business operations or facilities abroad. The primary goal of offshoring is to reduce the cost of the services or processes the company provides.

When understanding what outsourcing and offshoring are, the main difference is that outsourcing typically involves working directly with local businesses, which does not significantly affect domestic labor. In contrast, offshoring uses foreign labor, potentially impacting domestic jobs and causing a labor shortage.

Famous Outsourcing Companies in Viet Nam

Currently, there are many reputable outsourcing service providers chosen by businesses and organizations. Below are some of the famous companies in this field that you can refer to:

MPHR – Leading HR Outsourcing and Staffing Company

MPHR is oneof the leading outsourcing companies in Vietnam, specializing in human resources. Providing recruitment, training, and HR management solutions for domestic and international businesses, MPHR has more than 10 years of experience and is well-known for its high reputation in the industry.

MPHR supports technology solutions to optimize management and improve work efficiency. In addition, the company also provides specialized recruitment and HR management solutions for startups and small-scale enterprises.

With a team that is both professional and experienced, MPHR has won many prestigious awards and certifications in the HR field, including being ranked among the top 500 largest businesses in Vietnam and ISO 9001:2015 certification.

MP Transformation – A Telesales and Customer Service Outsourcing Company Applying AI

MP Transformation is a provider specializing in Contact Center and Call Center solutions for businesses in Vietnam. This company offers flexible solutions, including methods such as email, phone, social media chats, and customized solutions to meet customer needs.

Additionally, MP Transformation also conducts advertising campaigns and builds customer relationships, helping businesses optimize their business performance. Renowned for its advancement and credibility, MP Transformation brings intuitive and effective solutions, providing practical benefits for businesses.

With more than 14 years of experience, MP Transformation has provided thousands of Contact Center and Call Center solutions for businesses in Vietnam. The company holds important certifications such as ISO 9001:2015, ISO 27001:2013, and is recognized as a partner of leading technology providers like Mitel, Avaya, Cisco, Mitel, and Enghouse Interactive.

MP BPO – Providing Business Process Outsourcing Solutions

MP BPO is a leading business in the field of Business Process Outsourcing (BPO) in Vietnam, specializing in document digitization and data processing services for businesses. Its products and services include data entry, data conversion, data scanning, image processing, and document management.

Supported by advanced technology and a team of experienced experts, MP BPO is committed to providing customers with high-quality services at reasonable costs.

MP Solutions – IT Outsourcing Services for Businesses

Minh Phuc Solutions Joint Stock Company (MP Solutions) was established with the goal of providing modern, optimal IT solutions and leading in the digital transformation trend of Vietnam and the region. MP Solutions is committed to researching and applying the most modern technologies to provide high-quality, cost-effective IT solutions that exceed customer expectations.

Additionally, MP Solutions is pioneering and actively participating in the digital economy transformation of Vietnam. The company provides services and solutions to help Vietnamese businesses transition to a digital enterprise model. MP Solutions also offers solutions for building e-government and promoting the development of the digital economy.

Thus, the article above has thoroughly answered your question, “What is Outsourcing?” and provided relevant information regarding the use of Outsourcing by businesses. With the rapid development of various business models, Outsourcing is becoming an effective solution for many companies.

By applying Outsourcing, businesses can save costs in the production and operational processes. Additionally, understanding Outsourcing will also support you in orienting your future career to match your abilities. Hopefully, the information surrounding the concept of “What is Outsourcing?” will be helpful to you.