Advantages of outsourcing in the Philippines
By: Ada Tarnie
Tags: Philippines, Offshore, Staff Leasing, Outsourcing, Bpo

Outsourcing is the process of hiring an outside source to perform necessary business functions so you can focus on your core products. It includes research & development, computer programming & software development, engineering design, customer service operations, medical transcription services and all other forms of work that need a physical presence in another place.

The Philippines is an ideal destination for outsourcing due to our highly skilled but very affordable workforce that understands English better than in other countries. It is known all around the world as the top outsourcing destination for call centres and BPOs, or business process outsourcing.

Business process outsourcing (BPO) refers to companies that employ people who offer services on behalf of an organization rather than providing products, such as manufacturing.

The most important benefit is cost reduction. It allows businesses to lower operational costs by hiring people who work from home at rates considerably lower than those paid to their US counterparts.

It also reduces risk. Offshoring can be used with innovative ideas or new concepts to test it in a real market without losing too much money if the concept fails.

Outsourcing is also used to gain or maintain market share by providing additional products and services.

The Philippines has the largest English-speaking population in Asia with half of its citizens speaking one language.

This makes it the prime choice for call centres, which places thousands of people to work every day offering customer support through telephone, email or chat.

Other than that, companies are using the Philippines as their offshore location due to its timezone proximity with North America and Western Europe where most of their business transactions come from. This allows them to operate within normal business hours while communication remains fluent without geographical restrictions thanks to internet connection speeds. Technology is also an important factor when deciding which country will be selected for outsourcing. The Philippines has the youngest and most tech-savvy population in Asia, making it possible to reach more people with the help of social media campaigns for a fraction of the cost.

While many companies have begun outsourcing staff leasing in the Philippines, some still find it difficult to decide whether it would be a good strategy for them or not.

Filipinos have a strong work ethic and customer service orientation that makes them perfect employees. Most Filipinos love to help and they take great pride in their work. This means that companies gain increased competitiveness through workforce expertise and responsiveness.

It is no surprise then why the Philippines has become an outsourcing haven — its competitive prices, strategic location, high-quality English speaking workforce and rich history make the country one of the top locations for BPOs around the globe.

In conclusion, BPO in the Philippines helps businesses cut costs and increase productivity without incurring huge financial risks.

In today’s highly competitive business world, companies are not only required to provide quality products and services at reasonable prices but they must also keep an eye on their competition.

In order to survive in the industry and remain profitable, a business must be able to stay ahead of its competitors by adopting innovative strategies and finding better ways of meeting consumer needs and wants.

A prudent way of doing this is through outsourcing, which enables companies to focus on their core competencies while allowing other skilled companies or individuals to handle certain aspects of the business.

Offshoring in the Philippines has been a rapidly growing sector in the past few years and one of the top outsourcing destinations in the world because it offers affordable labour with high-level skills that can match foreign counterparts’ work output. For example, some call centres in the Philippines provide services that are of the same quality as their American counterparts but at a much cheaper price.

Services Offered

Currently, more and more companies in the Philippines — both local and multinational — are outsourcing certain aspects of their businesses not only specialising in call centre services. They can also offer other business expertise such as accounting, customer service, technology development, web design, human resources, logistics management, product assembly, research and development (R&D), data entry, medical transcription, etc.

Specifically, with regards to R&D, many top international companies have outsourced this service because it allows them to focus on developing new products while leaving the more mundane aspects of testing and improving these products to another company or individual. This means that the Philippines is home to a lot of companies that value R&D and have been doing this for quite some time.

In fact, Research Now, an international market research company, performed a poll that revealed that 83% of the top global pharmaceutical firms outsource research and development activities while 97% outsource clinical trials.

This shows us how big the outsourcing industry has grown in the country. It’s not only limited to call centres but it also includes other technology-centred jobs such as product design, R&D, and software engineering.

So what does all this mean? Well, for one thing, there are a lot of skilled workers who can provide these kinds of services at a fraction of what it would cost if they were done locally.

Because of the Philippines’ low production costs, companies that outsource to the country can save on expenses while still providing quality results.

Outsourcing enables companies to focus on their core competencies while allowing them to take advantage of all that outsourcing has to offer.

I think we can all agree that outsourcing is necessary and beneficial to any business regardless of size and location.

Currently, more and more companies in the Philippines — both local and multinational — are outsourcing certain aspects of their businesses such as accounting, customer service, technology development, human resources, logistics management, product assembly, etc.

This means that the Philippines is home to companies that value R&D and have been doing this for quite some time.

In fact, Research Now, an international market research company, performed a poll that revealed that 83% of top global pharmaceutical firms outsource research and development activities while 97% outsource clinical trials.

This shows us how big the outsourcing industry has grown in the country. It’s not only limited to call centres but it also includes other technology-centred jobs such as product design, R&D, and software engineering.

So what does all this mean? Well, for one thing, there are a lot of skilled workers who can provide these kinds of services at a fraction of what it would cost if they were done locally.