10 Benefits of Outsourcing to the Philippines

Companies of all shapes and sizes have been benefiting from embracing the concept of outsourcing for years.

Here are ten reasons why:

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, but the client does not have to pay for office space, computers, equipment, taxes, HR or legal costs. All of these can add up to at least cost savings of at least 50%, usually 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 have enabled countless Filipinos to support themselves and their families and increase their standard of living.

2. Flexibility. By outsourcing, you can put together a virtual team that can have can take on tasks like data entry, research, help desk support, customer service, marketing and sales and secretarial work. If you manage to build a team in the Philippines with a diverse set of skills that complement each other’s, the possibilities are endless.

3. Greater Access to Top Talent. English is the number one spoken language in the Philippines and outsourcing is it’s number one industry. Companies that understand the job market are able to hire a ready and willing workforce with relative ease and speed.

4. Outsourcing as a Change Catalyst. By choosing to outsource, you’ll have a fresh set of eyes on that can look at the way you do things and see where changes can be made. Additionally outsourcing necessarily requires that you document and analyze your workflow in order to train and get the best out of your offshore workforce.

5. Improve Service Quality. With an offshore customer service team, you will be able to provide  24/7 coverage and delight your customers in ways that previously wouldn’t have been possible. If you hire the right outsourcing partner you will in turn, receive great service in respect to your operations. The BPO provider you end up hiring 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 (mainly frivolous in nature) from their in-house staff. However, when you choose to outsource your tasks, the legal risk is borne entirely by the outsourcing provider. The client does not have to hire any staff or deal with lawsuits or in-house politics as these are managed by the provider. 

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 choose the right BPO provider, they will have an experienced HR and management team that will help you streamline your processes. 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 the day to day tasks and their accompanying problems 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.