10 Benefits of Outsourcing to the Philippines

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Companies of all shapes and sizes have been benefiting from outsourcing for years. Here are the top 10 outsourcing benefits.

  1. Cost

    This is the #1 reason companies outsource part of their operations. Not only is the cost of labor typically half of what it is in developed countries, the client does not have to pay for office space, computers, equipment, taxes, HR or legal costs. All of these add up to at least a 60% cost savings, sometimes more! In the Philippines, the cost of living is much lower than the developed world. This doesn’t necessarily mean the standard of living is lower, in fact many BPO companies offer jobs that enable local Filipino’s to support themselves and their families who live in modern cities with modern amenities.

    Benefits of Outsourcing to the Philippines
  2. Flexibility

    By outsourcing, you can construct a virtual team that can have diversified talents spanning a range of tasks, from data entry, research, help desk support, customer service, marketing and sales and attending to personal matters. If you build a team in the Philippines with diversified skills, the possibilities are endless.

  3. Greater Access to Top Talent

    English is the number one spoken language in the Philippines and outsourcing is the number one industry. Companies can hire a ready and willing workforce quickly and easily. Universities turn out many skilled and trained workers every year. If you assemble a talented team abroad, you have a greater access to talent, at a fraction of the cost of the same team at home. Simply, it’s much cheaper and easier to get talent in the Philippines.

  4. Outsourcing as a Change Catalyst

    If you build a team abroad, you have a fresh set of eyes on every task that is assigned to them. You can get a nonpartisan and objective opinion which could bring about a positive change in your company. Additionally outsourcing necessarily requires that you document and analyze your workflow in order to train and get the best out of your offshore workforce. This naturally forces you to examine your SOP’s (Standard Operating Procedures) and hopefully improve upon them.

  5. Improve Services

    The quality of service you both receive and provide could be improved by building a team in the Philippines. With an offshore customer service team, you can provide service 24/7, or in ways that weren’t possible before. If you hire the right outsourcing partner you will in turn receive great service in respect to your operations. The BPO company you hire will take care of management and internal problems.

  6. Reduce Legal Liability

    Many companies and top level executives in developed countries have to deal with lawsuits (sometimes frivolous) from their in-house staff. However, when outsourcing the legal risk is borne entirely by the outsourcing provider who is treated on a contractual basis. The client does not have to hire any staff or deal with lawsuits or in-house politics as these are managed by the BPO Company.

  7. Reduced Healthcare Costs and Benefits

    If you build a team abroad, you will not be responsible for providing health insurance, benefits, taxes and other expenses that can cost a business owner an arm and a leg. The cost is absorbed entirely by the outsourcing partner.

  8. Less Management Headaches

    If you chose the right BPO provider, they will have an experienced and professional HR and management team who will help your team. You are still responsible for training and task allocation but you can forget about ensuring your workers turn up on time, dealing with vacation and sick leave reporting, tax returns etc. All of that will be done for you, enabling you to focus on your business! Which brings us to number 9 on the list.

  9. Sharpen Focus

    Outsourcing your non-core competencies can allow you to focus on developing and growing your business. You can work on innovation and sales, rather than dealing with sometimes petty office problems and operational necessities that don’t add anything to the bottom line.

  10. Better Work / Life Balance

    Nobody ever has enough hours in the day. People are working more and more hours. Building a team in the Philippines can help improve your work- life balance by offloading time-consuming, repetitive and often boring tasks from you to them.

Conclusion

In a nutshell, the benefits of outsourcing include cost reduction, availability of better talent, flexibility and reduced exposure to lawsuits. Hiring a BPO company can be the most rewarding decision a company can take, fueling its growth for years to come.

Ike Stranathan

Ike Stranathan

Ike Stranathan founded STAFFVIRTUAL in 2009 after moving to the Philippines from California. Ike lives just a block from his offices in Makati, Philippines, and is passionate about helping companies achieve dynamic growth by outsourcing.