Business expansion calls for adequate resources. That means having enough qualified people to fill positions and funding to support targets. If your resources are not enough, do you give up on expansion plans or put them in the back burner? A better option would be to go through plan C.
Plan C, in this case, is outsourcing some of your business functions or requirements. Business outsourcing gives you flexibility to scale your company without the high cost, provided you work with the right outsourcing companies in the Philippines.
Why Businesses Prefer Outsourcing to the Philippines
The Philippines has become a top destination for companies looking to outsource much of their information technology processes. According to the IT & Business Process Association of the Philippines (ITBAP), the IT-BPM industry is the biggest generator of jobs and contributes $29.5 billion to the local economy. The figure represents about 7% of the country’s GDP, signifying the demand for outsourcing to Filipino workers. A couple outsourcing companies are even considered as some of the top companies in the country.
Foreign companies are outsourcing their processes in the Philippines because it’s a cost-effective business model. Wages are much lower here than in Western countries. But the caliber of professionals, educational backgrounds, and expertise are not diminished. It’s not just that Filipino workers have a good grasp of the English language (sometimes better than native speakers), it’s because they’re highly skilled and qualified.
What can businesses outsource to Philippine companies?
In general, companies outsource their customer support, back office duties, and handling inbound and outbound calls. These are the typical functions of any call center. But some businesses also outsource their bookkeeping, accounting, and other financial services; other businesses outsource their marketing, web programming, software development, and even healthcare services.
How to Outsource to the Philippines
Successful outsourcing requires careful consideration and strategic planning. Here are seven essential tips for foreign companies looking to outsource to the Philippines:
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Define Your Requirements Clearly
Before outsourcing any business process, clearly define your requirements, objectives, and expected outcomes. Determine which tasks or functions you want to outsource and establish key performance indicators (KPIs) to measure success. If your business handles sensitive information, it would also be advisable to require the outsourcing company to administer specific tests to ensure the integrity and character of the staff.
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Research Potential Outsourcing Companies
Conduct thorough research to identify reputable outsourcing companies in the Philippines. Look for companies with a proven track record, relevant experience in your industry, and positive client testimonials. Consider company size, expertise, infrastructure, and technology capabilities among other relevant factors.
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Assess Cultural Compatibility
Cultural compatibility is crucial for successful outsourcing relationships. Choose an outsourcing partner whose work culture, communication style, and values align with your own organization’s culture. Ensure that there are no significant barriers to effective collaboration and understanding. It’s important for foreign companies to understand that Filipinos are non-confrontational by nature and that family typically comes first. If your organization thrives on radical candor and a work-comes-first philosophy, the outsourcing company must thrive on a similar work environment.
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Evaluate Language Proficiency
Language proficiency is essential for effective communication between your team and the outsourced staff. Verify that the outsourcing company’s employees are proficient in English, both spoken and written, to ensure clear and efficient communication throughout the project.
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Ensure Data Security and Compliance
Data security and compliance should be top priorities when outsourcing business processes, especially in industries dealing with sensitive information. Choose an outsourcing company that adheres to international data protection standards, such as ISO 27001, and has robust security measures in place to safeguard your data.
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Consider Scalability and Flexibility
Select an outsourcing partner capable of scaling their operations to meet your evolving business needs. Flexibility is key, especially if you anticipate changes in project scope or volume over time. Ensure that the outsourcing company can quickly adapt to changes and maintain service levels without compromising quality.
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Establish Effective Communication Channels
Establish clear and efficient communication channels to facilitate seamless collaboration between your team and the outsourced staff. Use project management tools, video conferencing platforms, and regular meetings to stay connected and aligned on project goals, timelines, and deliverables.
Finally, go beyond the outsourcing company’s web presence when evaluating them. Arrange video calls and interviews with the staff to personally assess their capabilities. Sometimes, a face-to-face call can identify a mismatch in personality or culture and allows you to immediately determine their suitability for your business needs.
Business Outsourcing Done Right
Business expansion doesn’t have to be paused or deferred when you have adequate external support. Through outsourcing, your company can enhance efficiency, reduce costs, and gain access to specialized skills. But partner with the right outsourcing companies in the Philippines to leverage the benefits of hiring out to a third party.
John Clements Consultants is an industry leader and game-changer in outsourced staffing, project management, and staff augmentation. Learn more about our outsourced staffing solutions today.
