Outsourcing Destination - The Philippines
Johnson calls from the US complains about his internet connection.
A customer support agent from the Philippines answers.
Once his connection is restored, he sends an email to an IT professional in Cebu talking about web development.
It is for his company website where he has sales representatives in Manila selling his tooth whitening products.
A scenario such as this was unheard of many years ago.
Today, with the outsourcing industry expanding, the world has become smaller.
Business people from the US, UK, Australia and other countries communicate daily with other professionals from the other parts of the world.
When we say "outsource", one company employs the services of an external party (company or an individual).
The company and the external party agree that the outsourced service will be paid with the belief that the best service be given to them.
Outsourced services vary.
From translation jobs, data entry, IT support, web design and development, customer support and other services, many Asian countries have benefited from this-with a lot of jobs provided and billions of revenues.
Why do companies outsource? First if not the most important reason is to cut costs.
As mentioned, most offshore outsourcing destinations are in Asia.
This relatively translates to cheaper labor cost.
What could be a $50 rate per hour job in the US can be a $6 dollar cost in the Philippines.
As for the case of establishing a BPO company offshore, hiring an entire staff of sales representatives gives a company a lot of savings when they no longer have to pay for overhead costs.
For other companies considering an expansion, having a BPO company will pave its way for a smooth transition when they will fully expand their business to the country they outsourced.
The past years, a lot of companies in the US outsource services to some Asian countries.
Previously, India has been the prime choice for such.
These days, however, more and more business persons consider the Philippines.
It has become India's major competition when it comes to being an offshore outsourcing destination.
Today, the Philippines has become the leader in BPO or business process outsourcing.
Producing highly qualified professionals every year, companies are guaranteed to get quality service for a cheaper price from their customer service and sales representatives.
Professionals are hired to do medical transcriptions, copy editing, information technology services, legal consulting, accounting services and even virtual personal assistance.
What was once a strategy of division of labor in the 80's has now become an industry in itself.
The Philippines with its highly skilled-low cost workforce and quality infrastructure has remained competitive.
Aiming to give more and more jobs to Filipinos and making a mark globally.
the country is continuously trying to remain a major key player and be the top offshore outsourcing destination.