Essential Factors to Consider When Outsourcing Services in the Philippines
Business outsourcing services have grown exponentially in the Philippines for the past years.
In fact, in 2013, Tholons, a US-based strategic advisory firm for global outsourcing and investment ranked Manila, Philippines as one of the top performing global outsourcing destinations.
Lower labor costs, skilled and educated work force and high proficiency in English are the key factors that have attracted big businesses to outsource services in the Philippines.
Despite the country's competitiveness in the outsourcing industry, businesses are encouraged to consider some factors before deciding to venture out in any outsourcing activity.
Considering these factors may help you to land a successful outsourcing partnership in the future.
Identify the kind of workforce you need - Since the Philippines has become one of the in demand destinations when it comes to outsourcing, the number of human resources has vigorously increased in just a short span of time.
It is advisable for companies to set specific requirements and standards for the kind of employees they want to work with.
This way, the hired employees will be able to deliver the job required efficiently and effectively.
Most outsourcing companies in the country are trying to attract graduates for jobs that are completely unrelated to their majors.
You may want to avoid under/over qualified employees in the future.
Labor costs vs.
quality service - The Philippines is known to have competitive lower labor costs compared to most countries.
However, most of the outsource companies which offer lower labor costs tend to compromise the quality of work/service.
Businesses are advised to allot enough budget for outsourcing and are reminded to be wise in investing.
Availability and quality of resources and/or infrastructure - Businesses are advised to monitor the capability of the outsource service provider to deliver the requirements needed.
An outsource company with good and complete resources as well as competitive infrastructure will not only deliver effective and efficient service but may also lower the labor costs that you may need to cover.
Transparency in all dealings - Transparency is very important in any kind of negotiations.
Businesses are advised to create partnership with reputable outsource companies who give updates every now and then with the progress of their account and are willing to accept any changes or improvements that are beneficial to both parties.
Despite the competitiveness and appeal of outsourcing companies in the Philippines, businesses and organizations are still encouraged to check if outsourcing in the Philippines is the right strategy for their companies.
At the end of the day, the decision whether to outsource or not still lies on the company's strategic plan.
That is why it is better to analyze first the need of the company before making any decision to outsource that will clearly influence the success of your business.
In fact, in 2013, Tholons, a US-based strategic advisory firm for global outsourcing and investment ranked Manila, Philippines as one of the top performing global outsourcing destinations.
Lower labor costs, skilled and educated work force and high proficiency in English are the key factors that have attracted big businesses to outsource services in the Philippines.
Despite the country's competitiveness in the outsourcing industry, businesses are encouraged to consider some factors before deciding to venture out in any outsourcing activity.
Considering these factors may help you to land a successful outsourcing partnership in the future.
Identify the kind of workforce you need - Since the Philippines has become one of the in demand destinations when it comes to outsourcing, the number of human resources has vigorously increased in just a short span of time.
It is advisable for companies to set specific requirements and standards for the kind of employees they want to work with.
This way, the hired employees will be able to deliver the job required efficiently and effectively.
Most outsourcing companies in the country are trying to attract graduates for jobs that are completely unrelated to their majors.
You may want to avoid under/over qualified employees in the future.
Labor costs vs.
quality service - The Philippines is known to have competitive lower labor costs compared to most countries.
However, most of the outsource companies which offer lower labor costs tend to compromise the quality of work/service.
Businesses are advised to allot enough budget for outsourcing and are reminded to be wise in investing.
Availability and quality of resources and/or infrastructure - Businesses are advised to monitor the capability of the outsource service provider to deliver the requirements needed.
An outsource company with good and complete resources as well as competitive infrastructure will not only deliver effective and efficient service but may also lower the labor costs that you may need to cover.
Transparency in all dealings - Transparency is very important in any kind of negotiations.
Businesses are advised to create partnership with reputable outsource companies who give updates every now and then with the progress of their account and are willing to accept any changes or improvements that are beneficial to both parties.
Despite the competitiveness and appeal of outsourcing companies in the Philippines, businesses and organizations are still encouraged to check if outsourcing in the Philippines is the right strategy for their companies.
At the end of the day, the decision whether to outsource or not still lies on the company's strategic plan.
That is why it is better to analyze first the need of the company before making any decision to outsource that will clearly influence the success of your business.