Why Outsource IT to the Philippines?

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Why Outsource IT to the Philippines?

Why Outsource IT to the Philippines?

Outsourcing IT is the process of moving information technology processes and developemtn to another company or third party, or an external IT outsourcing agency. There are countless reasons why organizations choose to go down the IT outsourcing route – below we have listed some of the most obvious ones.

Why Outsource IT to the Philippines?

The biggest driver of outsourcing IT to the Philippines and other Asian destinations has always been the tremendous cost savings you can enjoy. Smart CEOs and decision-makers can often drastically improve their bottom line by outsourcing IT to the Philippines. Saving money has always been the biggest reason why companies are offshoring IT to the Philippines. Wages in Asian contries are much less. Global labor cost arbitrage is an economic phenomenon where, as a result of the removal of or disintegration of trade barriers to international trade, jobs move to countries where the cost of labor and doing business is less expensive.

Capital often moves to countries with inexpensive labor, lower tax rates, lower office space costs, and fewer regulations or other costs of doing business for the purpose of producing services for export to other markets. Other factors such as economies of scale and specialization could also have a considerable impact on a companies decision to offshore to the Philippines. Other reasons to outsource to the Philippines may include, but are not limited to:

  • Share the risk

    Outsourcing IT is the process of moving information technology processes and developemtn to another company or third party, or an external IT outsourcing agency. There are countless reasons why organizations choose to go down the IT outsourcing route – below we have listed some of the most obvious ones.

    Why Outsource IT to the Philippines?

    The biggest driver of outsourcing IT to the Philippines and other Asian destinations has always been the tremendous cost savings you can enjoy. Smart CEOs and decision-makers can often drastically improve their bottom line by outsourcing IT to the Philippines. Saving money has always been the biggest reason why companies are offshoring IT to the Philippines. Wages in Asian contries are much less. Global labor cost arbitrage is an economic phenomenon where, as a result of the removal of or disintegration of trade barriers to international trade, jobs move to countries where the cost of labor and doing business is less expensive.

    Capital often moves to countries with inexpensive labor, lower tax rates, lower office space costs, and fewer regulations or other costs of doing business for the purpose of producing services for export to other markets. Other factors such as economies of scale and specialization could also have a considerable impact on a companies decision to offshore to the Philippines. Other reasons to outsource to the Philippines may include, but are not limited to:

    • Share the risk burden
    • Access to data management expertise
    • Improve uptime
    • Lower corporate tax rates
    • Excel in operational performance
    • Re-Focus on core business process
    • Re-Focus on priorities
    • Obtain access to market areas
    • 24/7/365 uptime
    • Reduce risk
    • Strong government support
    • Filipinos are a pleasure to work with
    • Filipinos speak fluent English
    • Flexible management
    • Philippines has a very westernized culture
    • Greater access to talent
    • Better work/life balance
    • Drastically increase productivity
    • Enhanced access to specialized IT expertise
    • Freeing up internal resources
    • Greater peace of mind
    • Business Agility
    • Financial stability

    While the reasons for IT outsourcing listed below are all valid, business leaders need to analyse their own situation and determine what benefits outsourcing all or some of the IT function will bring to their organisation. The economy is driving irreversibly towards globalization. Companies are under pressure to gain a competitive advantage by slashing costs, optimizing efficiency, and providing a greater customer experience. So how do you go about doing that in a limited time and on a limited budget? If you are looking for a one-word answer then "outsourcing" is your gateway to success. For more information about outsourcing to the Philippines, you may contact us: contact@staffvirtual.com. You may also request a quote for IT outsourcing by clicking the call to actions above or below.

    burden
  • Access to data management expertise
  • Improve uptime
  • Lower corporate tax rates
  • Excel in operational performance
  • Re-Focus on core business process
  • Re-Focus on priorities
  • Obtain access to market areas
  • 24/7/365 uptime
  • Reduce risk
  • Strong government support
  • Filipinos are a pleasure to work with
  • Filipinos speak fluent English
  • Flexible management
  • Philippines has a very westernized culture
  • Greater access to talent
  • Better work/life balance
  • Drastically increase productivity
  • Enhanced access to specialized IT expertise
  • Freeing up internal resources
  • Greater peace of mind
  • Business Agility
  • Financial stability

While the reasons for IT outsourcing listed below are all valid, business leaders need to analyse their own situation and determine what benefits outsourcing all or some of the IT function will bring to their organisation. The economy is driving irreversibly towards globalization. Companies are under pressure to gain a competitive advantage by slashing costs, optimizing efficiency, and providing a greater customer experience. So how do you go about doing that in a limited time and on a limited budget? If you are looking for a one-word answer then "outsourcing" is your gateway to success. For more information about outsourcing to the Philippines, you may contact us: contact@staffvirtual.com. You may also request a quote for IT outsourcing by clicking the call to actions above or below.

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.

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