Outsourcing has attracted a lot of businesses around the world only for its main reason, it drives business growth. The Philippine IT-BPM industry is projected to achieve $48 billion in revenue by 2020 which would account for 19% of the total global outsourcing industry according to Tholons.
However, not all business owners are quite satisfied with the outcomes as they experience growth barriers that are only bound to work within the parameters of the delivery model.
The need to find an alternative solution to address challenges may be a lot when approaching different vendors. Staff outsourcing in the Philippines may be an alternative option for you if you are facing some of the following issues:
- Limited control over the operations and the staff
- Pricing can be too expensive for businesses outsourcing smaller projects
- Long term engagement may not be viable during the trial phase
- Business and cultural alignment may require more time to fully integrate with the client’s internal processes
So what is staff outsourcing?
Staff outsourcing also pertains to the conventional staffing model. However, nowadays the terms staff outsourcing is more attributed to the practice in the offshore outsourcing industry which is the offshore staffing model. In the previous article, we’ve provided you a sense of context to give you a wider understanding of what is offshore staffing and how it works.
Benefits and advantage of staff leasing in the Philippines
There are a lot of outsourcing vendors that can offer you great benefits such as cost-savings, access to talents, infrastructure, and more.
Before you engage with a service provider in the Philippines, it must be clear to your understanding about what can truly benefit your business of leasing offshore employees in the Philippines.
Greater control
Having your own offshore organization in the Philippines gives you greater control over the operations that outsourcing the entire project or business process to a service provider.
Also, easier communication between you and your team is crucial when there are always active exchanges of ideas and information. Indirect access to the team can cause language barrier, miscommunication, and cultural gaps that can greatly impact the performance leading to poor output, and at times it fails to live up to your expectations.
Cost advantages
Cutting operations costs alone attracts a lot of businesses to contract projects overseas. According to Deloitte, 64% of the companies relate to cost-advantages as the primary driver of moving projects offshore.
Hiring remote staff can help you slash costs in employee salaries, utilities, office supplies, and facilities that also increase as you scale. More importantly, the pricing structure of offshore staffing varies to the number of team members which can come out cheaper than total business process outsourcing.
Access to talents
Building an offshore team in the Philippines means that you will be working with dynamic young individuals with fresh ideas, creative inputs, and solution-oriented when dealing with problems.
This makes Filipinos excel in different fields therefore, being one of the top outsourcing destinations in the world because of talents and skills says it all.
Increased efficiency
The outsourced staffing model allows you to run your operations at speed in a short amount of time. That is because it doesn’t require a lot of time to set up your operations and a suitable office for your remote staff.
Moreover, clients from distant proximity like the US and Europe can benefit from the time difference in which the offshore team performs the tasks while you are at rest and return with the output when you come to the office the next morning. This helps speed up your game when you manage time zone differences to your advantage.
Scalability and business growth
Building your own offshore organization enables you to optimize your growth potential through cost-savings that can help you allocate more resources in other important aspects of your business such as in marketing or hiring more staff to your team. Therefore, it gives you the ability to scale fast and acquire more and more growth opportunities each day.
Government support
The BPO industry is backed by the government since it exploded in the Philippines twenty-five years ago. The government has been an integral part of the success of the outsourcing boom in the country. The support provided includes training programs, marketing, improved infrastructure, workforce pipeline building, relaxed government regulation such as tax holiday, tax exemptions, and ease of doing business, all contributed to the approximately 9% of the total GDP of the Philippines from the IT-BPO sector.
Time zone advantage
Most outsourcing companies can operate at the preferred time zone of the client from across the hemisphere. Being the industry is quite popular, Filipinos already have the nitty-gritty of the offshore job so shifting hours won’t be much of a concern to your remote staff.
Most mid to large outsourcing companies operates 24/7 to serve their clients especially in customer service, back-office support, IT, and health disciplines.
Multi-lingual speaking population
Based on the survey conducted by GlobalEnglish Corporation, the Philippines landed the top spot for business English proficiency with approximately around 90% English speakers in the country.
Being an English speaking country is a great advantage in the Philippine outsourcing industry though not many foreign businesses have the knowledge of the significant number of Filipinos than can speak other variety of widely spoken languages in the world.
Cultural compatibility
Whether a client is from the west or our Asian neighborhood, Filipinos go well with its counterpart for having a good grasp of respective cultures so it’s easy to work and communicate with your remote employees. Cultural differences cause conflicts in different aspects and they prevent business organizations from achieving growth and success.
Increased flexibility
In the past, there were outsourcing clients are frustrated when they realized that they are being locked-in to a rigid contract. Therefore, the offshore staffing model was created mainly to provide clients with high flexibility and a better pricing structure.
Improved infrastructure
The government allocates a significant amount of budget to build better infrastructure and improve networks and telecommunications to lessen the gap in communication between, your customers, and your offshore staff and process data at speed.