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outsourcing to the Philippines

What is Outsourcing? It has long become a popular business practice among companies worldwide. This is due to business owners looking for practical methods to enhance the efficiency of their processes who find relief in this readily available business solution. While the practice has been making a buzz for many years, there are still those who need further information about the concept. In this case, we will elaborate on what this widely popular business operation service is and the primary benefits it brings to the table.

What is Outsourcing?

Outsourcing refers to the business practice of contracting an external organization to handle specific tasks. In this situation, the external companies who take on the tasks are commonly known as Business Process Outsourcing (BPO) providers. Usually, the tasks that BPO firms handle are non-core functions that are essential but not the most critical part of business operations. So, for a restaurant whose core function is cooking, its non-core functions such as digital marketing, customer service, and payroll. In line with this, here are some of the most common non-core tasks that organizations outsource to BPO firms:

Back office

Contact center

Outsourcing vs. Offshoring

Outsourcing and offshoring are often regarded as similar concepts when they are not. While the former means getting work done outside the company, the latter means getting work done outside the country. Although the two are similar in terms of getting internal work done externally, the specifics of where the work will be accomplished differentiates the two.

Advantages of Outsourcing

Companies are able to enjoy the following benefits through outsourcing:

  • A decrease in operational expenses
  • Focus on tasks that can help yield more earnings
  • Access to quality talents that are experts in handling non-core tasks
  • Enhance the efficiency of business processes
  • Enjoy a boost in sales given a BPO company’s matured process for inbound and outbound contact center services

Outsourcing to the Philippines

The Philippines has been a prime outsourcing destination for many years. For one thing, it ranked third in the 2017 Tholons Services Globalization Index and seventh in the 2017 A.T. Kearney Global Services Location Index. Consequently, the country is also the number one outsourcing destination for voice-related BPO services. The competency of the Filipino workforce is ultimately the reason why the Philippines has become a favorite outsourcing location for international businesses.

If you hope to learn more about this opportunity, please don’t hesitate to contact us.