Outsourcing to the Philippines: Advantages and Disadvantages

Outsource Philippines is a decision that many CEOs face. There are pros and cons of outsourcing business process work to the Philippines. Here are some advantages and disadvantages of outsourcing to the Philippines.

Outsource Philippines Advantages:

Outsourcing Saves Time – Outsourcing to the Philippines can save you precious time. Time-consuming and repetive business processes are taken care of by your business process outsourcing provider in the Philippines. Let them worry about the busy work, so that you as the CEO can do higher level tasks like implement a new marketing plan or That is because you do not have to worry about the work or projects as it is taken care of. What you need to think about it how to utilize the resources and implement other marketing techniques which can help in the growth of your business.

Its Their Passion, not Yours! – Customer support might just be one of a hundred things you must worry about as a CEO. You aren’t a customer support expert, its not your passion, and its certainly not all you do. Find a BPO provider in the Philppines who is passionate about customer service, and this is their speciality. They know the business process inside out. They will hire the right people, and you can expect excellence from them if they are true subject matter experts with a proven track record.

Outsourcing Saves Money – Companies typically save at least 40 percent by outsourcing. Many companies save many more times that. For example, a mid level developer in the Bay Area charges 100-$150 / hour. You might be able to find a full time person in the Philippines for less than $2,000 per month. That’s massive cost savings! Many companies can hire 2, 3 or even more people in the Philippines for the cost of just one FTE back home.

Sharpen Your Focus! – Outsourcing time-consuming, repetitive tasks to the Philippines allows CEOs to focus on their core competancies which are going to add tremendous value. They can focus on the KPIs that matter, and their own personal performance.

Better Quality – Outsourcing to a subject matter expert often improves processes, and drives errors out of processes. It also streamlines process more often than not

Outsource Philippines Disadvantages:

Loss of Visibility and Control – Perhaps the biggest outsourcing risk is loss of visibility and control. Loss of visibility and control is a common fear many CEOs have when deciding to outsource. Loss of control in outsourcing can mean very high costs with a sub-par product or service.

Threat to Privacy – You may have to let your outsourcing provider in on trade secrets, or proprietary software or processes. A good non-compete or NDA agreement is therefore standard in the outsourcing industry.

Data Security – Virtually all data protection and privacy regulations state that firms can’t share the risk of compliance, which means that if your outsourcing partner fails to protect your company’s data, your company is at fault and is liable for any associated penalties or legal actions that might arise from the exposure of that data.

Possible Hidden Costs – Be sure to sign an outsourcing agreement with a flat fee, that is easy to understand, and free of any hidden costs.

Language Issues – There might be minor issues when you want to outsource your work off-shore, as you might not coordinate due to language problems. Choose an outsourcing provider with excellent communication skills.