How much do I save when using a BPO to hire employees in other countries?

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For years, business analysts have extolled the advantages of remote work. They had visions of flexible working schedules, cloud collaboration, and a lot of video conferencing! What most of these experts never thought is that due to a global pandemic, almost the entire planet would be switching to working remotely.

COVID, for example, has helped to bring about a revolution in the corporate world by making it easier than ever before for business owners and executives across America to work remotely. Although many people have simply begun working from home as a result of COVID, for years, BPO firms (Business Process Outsourcing) have been recruiting remote workers from all over the world (like the Philippines and Mexico). But, why is it such a great option? In three words: You save money. Think of it this way.

If you could assemble the perfect staff, with the finest accountant, best translator, greatest supply chain agent, and so on, how much do you believe it would cost you to have the ideal team? Consider not just their salary but also everything else that comes with employing someone in the United States. Now, imagine that same great team but at the best price. Now we’re talking!

Hiring Remote Employees = Saving Money

Office space, internet, power, water, and other essentials for staff to work on location are a significant cost burden for organizations. Let’s have a look at the expenses that companies may save by allowing workers to work from home.

  • Property, Utilities, and Cleaning Services

Did you know that when companies intend to save money by going remote-first, they actually refer to cutting down on property costs (rent), utility bills, and/or office furniture? But, how much do firms actually save by having their employees work from home?

Actually, the yearly cost of office space per employee is estimated to be around $18,000! This cost multiplied by the number of workers employed by prominent firms like Google or Apple might give you a sense of how much remote work may help you save money.

According to the Global Workplace Analytics Telework Savings Calculator, a single firm may save $11,000 per remote employee that telecommutes 50% of the time. This may translate to major savings based on the size of your firm, without requiring you to alter your business structure or entirely eliminate brick-and-mortar company activities.

  • Food

This may be a little bargain, but it must be mentioned! With a remote workforce, you don’t have to provide coffee, snacks, or any meals or dinners on a regular basis. There’s no need for meeting supplies either. The running of an on-site cafeteria is the same way.

Let’s take a look at how much money Google spends each year on its employees’ food. According to expense reports and a survey of food information accessible on the company’s public website, in 2016, Google spent $6.3 million on food, mostly for their staff. What does this mean? Google, according to industry experts, spends around $20 per employee each day on meals, accounting for over $80 million in annual food costs! That’s a lot of money just on food!

  • Travel expenses

It’s not difficult to see that having a completely remote organization can save you a lot of money on travel expenses. According to Runzheimer, the average business trip in 2019 cost $1,293! With remote work, even organizations that don’t usually send their employees on business trips may save money. Employees may work from the comfort of their own homes, eliminating the need for daily commutes, and putting an end to travel allowances.

We’ve learned that although having an on-site team may seem like the easiest way to work or even like the most logical way of doing things, it may also be the most expensive. Now, does this mean you won’t spend a dime when hiring remote employees? Not exactly.

Hiring a BPO Company

If you’re just getting started with a new company, BPO services may appear to be a waste of money. When you consider the benefits versus the drawbacks, though, you’ll discover that hiring BPO services can be quite beneficial.

In business as in life, time is money. When working on your business, you are essentially trading your time with money. So, wouldn’t you want to make the most out of the time that you spend on building your business? Think of how much time it takes to interview, hire, train, and manage one person. Now, think of the time it takes for you to do all of this with a full-on team!

A BPO company can easily take care of this task and many more, leaving you with more time to think about how to make your business grow and evolve. But, all this of course comes with a price. The question now is, is it really worth it? What would you rather do? Let’s take a look at what the numbers say and you can make a decision based on that.

  • In-house Company In the US.

According to, the average salary for a Customer Service Representative in the United States is $30,688 plus $4,633 in benefits. Multiply that by four or more people if you want your team to include more than two individuals. In addition, the Customer Service Manager makes $39,694 per year plus $6,032 in benefits.

– Salaries and Benefits       – $141,284

– Customer Service Manager  – $45,726

– Hiring costs               – $20,645

– Office space               – $48,000

– Software and Hardware    – $3,600

Total                      = $259,955 per year

Training, phone systems, office supplies, and costs are all examples of additional expenses that aren’t included above. In addition, there may be team members such as trainers, analysts, and quality assurance coaches who will cost an additional $200K each year.

  • Outsourcing a Team Offshore

Having a team outside the US would bring down significantly the cost per hour per representative. Did you know that rates in South America and South-Eastern Asia are between $8 and $18? Outsourcing your call center will save you so many headaches!

Dedicated part-time employees enable you to spend more time on producing new and exciting projects that will help grow your business. You’ll be able to focus solely on development without being forced to deal with payroll taxes, HR documentation, sick days, or other issues that can negatively impact your company’s efficiency and bottom line.


Are You Ready To Go Remote?

So, can organizations actually save money by having their employees work remotely? YES! The savings you’ll have for your company are significant enough to make remote work a great option for you and for companies who want to cut down their expenses.

Looking for a way to grow your remote team and start saving? GlobalityNet makes it easy to hire full-time remote employees that will fit very well at your company.

From accountants to customer service work, we’ve got you covered. Contact us today.

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