Due to the increasing popularity of outsourcing services, there are no signs of its possible demise or slowing down. According to the IT & Business Process Association of the Philippines, the Philippines is currently placed second among the top 100 outsourcing destinations. The call center industry is encouraging investors to start their business in the country.The BPO industry in the Philippines is so alluring that many foreign companies are expressing their interest to set up their call center service or even their shor here. The good thing about investing in this country is that the Philippine BPO industry is not only feasible in the huge cities but also in the neighboring regions. Despite the fact that the Philippines has less developed networking and IT infrastructure and political instability, foreign investors are still interested to avail of the BPO services that the country has to offer.
Rightshoring is a buzzword in the business industry and it comes usually with nearshoring, offshoring and outsourcing. It is the process of restructuring the workforce of an organization in order to find the perfect match of jobs. Companies in the United Kingdom and the United States have been adapting the rightshoring principles to stay competitive through outsourcing. This model helps in organizing business activities. It also, at the same time, helps achieve effectiveness. However, before outsourcing any jobs you need done, make sure that you understand how this process will work for your organization.
The efficient outsourcing services in the Philippines are one of the reasons that attract the interest of foreign companies to start a new business. However, it is important to know first what is outsourcing in business. To know what is business outsourcing, one must understand that it is a process of hiring a second party company to handle the business activities of a certain company including those non-core functions. In fact, most organizations are outsourcing administrative and financial processes, customer service and call center activities, accounting and payroll as well as human resources functions. Outsourcing usually takes multi-year contracts that can cost millions of dollars but will save you money in the long run as cited in Sourcing Mag.
Global organizations have been reaping the benefits of outsourcing. It is cost-effective and reduces costs, thereby increasing profits. The BPO industry in the Philippines is not only cost-effective as it also provides high quality services. Another benefit of rightshoring is that the organization can enhance productivity and efficiency. It lessens the burden of the workforce by outsourcing non-critical work to BPO providers. Through rightshoring, the organization can balance the workload thus obtain overall productivity and efficiency. Additionally, outsourcing also helps in improving customer relationships. Customers are vital in any business and it is important to outsource contact center services. Outsource providers can also offer the opportunity to focus on particular tasks and innovate in order to achieve excellent management. This way, the company can concentrate on the core activities as well as innovation tasks.
Moreover, the Western enterprises’ perspective about the Philippine contact center industry is not contained on low start-up capital. Instead, Western enterprises prefer going for outsourcing services in the Philippines because of the creative and young population that is synonymous to resilient business strategy. Likewise, the younger population offers extended career growth and business partnership that is later translated to long life of business. With all the advantages the country offers, undoubtedly, the outsourcing industry will continue to flourish and boom in the coming years.
Obtaining business process outsourcing services like those offered by Magellan Solutions allows business professionals the time and freedom to involve in core competencies. Such services ensure increase in productivity and profitability for organizations. It also promises an increase in the market value of the products and services as it attracts more customer response. Any organization interested in taking advantage of BPO services should ensure that the company they are going to go to employs highly qualified employees and also comes with a well-maintained infrastructure. Outsourcing services can suit various demands of different companies involved in legal services, healthcare, IT, banking, hospitality, travel, mortgage and insurance. Of course, these are just a few of the industries that outsourcing can take serve. As mentioned earlier, outsourcing can reduce the workload so that business executives can focus on new business strategies and customer care.
Some of the tasks that can be sourced from business process outsourcing include medical coding and billing, legal/medical transcriptions, search engine optimization, data entry, accounting and bookkeeping, telemarketing as well as forms and documentation processing. When finding reliable BPO companies, you can expect quick turnaround times. Outsourcing also helps in leveraging business success at reduced costs.
Likewise, they can also help in understanding the market trends so that your business will get an edge over your competitors. They are knowledgeable as well about the potential risks involved in your business due to the changes in technology, economy, market trends and government policies. Many organizations are having a hard time setting up business infrastructures and hiring the right employees. Nevertheless, by choosing to go with offshoring and outsourcing, the capital investment and operational costs are reduced. With this, organizations can be more productive and obtain positive business revenue.
According to Michele Hanson-O’Reggio, a productivity and outsourcing expert, outsourcing is the main solution of large companies to move offshore. By outsourcing non-essential functions, the organization can expect great returns as compared to the investment. The truth is, no one can do several tasks all alone. Thus, the need to outsource should be considered. However, before getting any BPO services, it is important to know the right time to outsource and when your business needs it. Here are several factors that you may want to keep in mind when deciding if you do need to outsource and if today is the best time to do such:
1. Consider the non-productive hours and overhead costs. Paying full-time employees is a great addition to overhead costs. That is why it is necessary to determine the positions that are spending more non-productive hours. To reduce the overhead costs, the best thing to do is obtain the services of companies who know the business outsourcing process to handle the non-core functions instead of paying the salary of employees.
2. Determine if it is worthwhile to hire or to outsource. Obviously, outsourcing involved lower hourly rates as compared to hiring a contractor. For instance, paying a virtual assistant to do administrative tasks is cheaper and it can save both the money and time of a business owner.
3. Think outside the basics. A chief financial officer plays a significant role in any organization and that is why it would cost a big amount of money for the salary itself. The good thing is that by outsourcing this position, business firms can save at least 65% instead of paying the salary. You can also save 60% by outsourcing the position of a chief marketing officer. The savings can be added to the business revenue.
4. Get personal. The cost savings obtained by outsourcing vary from one business to another. In fact, information technology outsourcing can save the company a modest amount. Likewise, the potential cost savings also depend on the type of industry you are in and the intricacy of the business.
Weighing the benefits and the costs of outsourcing is also important in determining the right time to seek services. Since this service is cost-effective, many businesses prefer to outsource various positions instead of hiring full-time employees, as discussed by Entrepreneur.com. It is not ideal to outsource a task that you do not want to do. Make sure not to outsource the things that are vital to your business. You need to identify first the capabilities and core competencies of your business.
• Highly skilled and executive positions.? The salary of chief executives can seriously add to the overhead cost of the company. Outsourcing the task of a chief executive can save you a significant amount of money, yet you can be sure that the job is handled well.
• Specialized knowledge. If the company needs IT support, you can easily outsource an IT expert with the appropriate skills rather than hiring a full-time employee.
• Highly routine tasks. In any business, there are tasks that are highly repetitive in such a way that hiring the
BPO services is the best option to consider when it comes to handling the job.
Outsourcing services is also necessary to achieve internet marketing success. It is not easy to do the complex work of internet marketing such as search engine optimization. However, outsourced services can handle those things so that your website will rank well in the search engines. It will reduce the time spent in doing different tasks and, at the same time, spare you from stressful thinking.
Thousands of business process outsourcing companies are located in the Philippines. It is because Filipinos are excellent in performing meticulous jobs. This is also the reason why foreign investors and companies are entrusting their businesses to different BPO companies in the country. The Philippine contact center world assures that their clients can sit and relax at home without worrying about their internet businesses and websites.
Investing in outsourced services involves minimal costs thinking about the profits that you can possibly gain. In fact, most successful internet marketers recommend that this is the best option to make any business succeed.
There is no money and time wasted as it seems like having online office. It is also the best step to reach your goals. This move can be your strong weapon to compete in the industry you are in.
BPO is not all about cost savings because it also enhances the flexibility of the business and all the expenses are variable costs. The company pays the service it needs that is why the expenses can be controlled. Contracting outsourcing services help businesses grow faster just like in starting up a call center. Likewise, the company needs not to worry about the hiring and training process of new employees. To ensure success, an organization should choose the best BPO provider that can provide the services the company needs.
The good thing about the BPO industry in the Philippines is that they are not only helping investors but also they offer opportunities in the job market. They offer job vacancies not only for graduates but even those undergraduates. They are not giving emphasis on the scholastic standing of an individual. Instead, they focus on the necessary skills suitable to the positions offered.
The boom of the Philippines contact center makes 22% of the working Filipinos to go online and find opportunities there. This number increases every year. Additionally, the Philippines can provide the best services particularly in the call center industry because it is an English-speaking country. This means that Filipinos can give efficient customer support services as compared to other overseas counterparts. The time zone is another advantage why many Western and American companies prefer the country’s BPO services.
In order to enjoy the benefits of outsourcing strategy, an organization should find the right BPO providers. It is important to work with the right provider that is why going through the right selection process should be considered. You can ask recommendations from other business owners if they know a provider that can give the services that you need. Searching through online networks can make the search easier.
Placing ads on your business website is another way of finding the right BPO provider. There are also online services like eLance, BifModo and oDesk where you can find contractors. Before choosing a vendor, make sure to check the reviews of previous clients as well as the detailed profile. Choose an outsourcing provider that has competitive performance metrics. You should be aware that some providers concentrate on delivering a speedy output while compromising the quality of their work.
It is not enough to check the references and choose a BPO provider. It is within your control to ensure that the provider will give the services and performance that you expect. It makes sense to give your expectations clearly so that the contractors will not assume what you are thinking. Everything is all set and on the table. See to it that the expectations and requirements are laid out before the job starts.
Indeed, outsourcing various tasks in the Philippines is more competitive and reasonable as compared to other countries. The organization can expect that the provider will not only perform the job assigned but also help out with growing and expanding your business. The Philippine BPO industry is continuing to explore and innovate in order to provide the best outsourcing services ever.