Knowing how to outsource in the Philippines is undoubtedly a must in today’s competitive business process outsourcing industry. Considering how the Philippines is well-known for its reputation as a booming center of business activity — boasting a diverse, highly-skilled and English-proficient talent pool, cost-effective labor costs, and high quality services like no other — the key for you to grow a successful business through outsourcing most probably lies here.
The Philippines is one of the fastest-growing nations in the outsourcing industry, with a staggering 30% growth within the last decade alone. In fact, business process outsourcing (BPO) accounts for one of the biggest boosts to the Philippines’ economy and currently employs more than 2 million people in several sectors, boasting a net worth of $24 billion. Examples of these sectors include SEO, call centers, online marketing, virtual staffing, IT services, and more. Along with the remittances of 10 million overseas Filipinos, outsourcing is one of the legs of the Philippine economy. The Philippines is among the top outsourcing countries Western countries outsource to, there really is no doubt that the country has emerged as the world’s largest—and leading—top outsourcing destination.
Why outsource to the Philippines?
The business processing outsourcing industry in the Philippines already has several key advantages as the top outsourcing destination – low cost of labor, an English-proficient and highly skilled workforce, as well as cutting-edge technology and infrastructure, are strengths that will continue to give the country an edge in the future. These are highly valued attributes to the world’s largest process outsourcing companies in places like the US, Australia and the UK that rely on outsourcing. With the Philippines having strong support from their government, the country’s reputation continues to grow and attract more foreign investors who are looking to improve their business with cost effective services.
How does outsourcing help small businesses?
No business is too small to outsource. When you think about it, 37% of small businesses actually outsource at least one business process. And considering their limited resources, outsourcing can be of great help to small businesses and startups in saving time and money. This is definitely valuable for smaller businesses trying to grow, as they can focus their resources on high-priority tasks while the outsourcing provider delivers the rest. By allowing for more scalable solutions, it gives businesses greater flexibility when it comes to budgeting and prioritizing projects. Outsourcing can save businesses money because it allows them to outsource work to a provider that has the expertise, technology and requirements necessary.
General guide to outsourcing in the Philippines
Choose the right provider
The challenge in choosing the right outsourcing provider lies in the risk present when you’re not matched up with somebody who has the same culture that your company has. Working with an outsourcing company can feel like trusting strangers with the keys to your own success, but it doesn’t have to be that way. If you want to work effectively with a remote team, trust should be the first thing you establish. The global outsourcing companies in the Philippines not only have technical, creative, and administrative talent and employees that are more than well-equipped to handle all kinds of tasks at a faster rate, but they also have an outstanding reputation that speaks for itself. These will give you and your business the best benefits and rewards.
Negotiate the price
Negotiating prices when you outsource in the Philippines shouldn’t be complicated. According to The Scotsman, saving money is the main reason the Philippines continues to be the top outsourcing destination. For outsourcing can significantly reduce the cost of material expenditures such as office space, infrastructure, technology, and other equipment, as these become the BPO provider’s responsibility. In addition to that, companies also save on employee costs like salaries, health care, and other benefits. All in all, companies outsourcing to the Philippines can save up to 60% on labour and 40-50% on operating costs, savings that can go towards resources that will contribute to healthy and substantial growth.
Set up an agreement
Once you’ve found a company that you’d like to work with, the next step is to settle an agreement by drafting a contract. This contract should outline the scope of work, as well as the terms of payment. Be sure to include any deadlines or milestones that need to be met in order for the project to be considered a success. Paras Mittal says that a well-written contract is the heart of any successful business and serves as the foundation of any transaction done by businesses. Outsourcing contracts are essential for protecting both parties involved in an outsourcing relationship. If crafted properly, they can help avoid potential conflicts and ensure that everyone is on the same page about expectations and responsibilities related to your project or product launch.
Get started!
The first step to outsourcing in the Philippines with a guarantee to success is to clearly define your goals. You can’t expect successful business operations when you still don’t know what you truly want. Defining and setting goals gives you a clear focus, motivates your employees and sets targets for your business to work towards. It will also help you set better terms and plans with your outsourcing partner. Goal setting can also easily let you see if your business is succeeding. Some questions to help you define your business goals can be: what are you hoping to achieve by outsourcing? Are you looking to save money, free up time, or improve the quality of your product? Once you have a clear understanding of your goals, you can begin to look for a trusted and reliable outsourcing company that can help you to achieve them.
Monitor progress
It’s important to monitor the progress of your outsourcing project on a regular basis. This will help you to identify any problems early on and make sure that the project is on track. Be sure to set up some kind of reporting system so that you can track the progress of your employees and see how they are performing against your expectations. Monitoring progress also means making sure the outsourced project remains aligned with your company’s objectives.
If the current process or status of the project is not aligned with the company’s objectives, then the loopholes should be identified and rectified immediately.
Keep in touch with your provider
There are a lot of outsourcing companies out there, so it’s important to find one that is a good fit for your business. Take the time to read reviews and compare pricing. You should also ask for referrals from other businesses that have outsourced in the past. Outsourcing gives you more expertise and access to more talent, so sealing the deal with the right outsourcing provider and maintaining good communication all throughout the project duration is key. Ultimately, the outsourcing company you hire will become an extension of your brand. With this, you’ll be needing someone stable and reliable that will not only provide you excellent outsourcing services through consistent communication, but also someone who can share the same values as you.
Get paid on time
According to Manila Bulletin, the affordable hourly rates for Philippine call centers, where hourly rates are another consideration that can guide a company’s hand in choosing a BPO provider. On average, contact centers in the Philippines charge US$8–$16 per hour for their services. When compared to hourly rates charged by centers in the US (US$24–$32/hour), Latin America (US$14–$20/hour), Western Europe (US$25–$35/hour), Eastern Europe (US$18–$26/hour), or Australia (US$28–$40/hour), outsourcing to the Philippines is by far the most cost effective option.
Stay safe and happy with your new employee!
In addition to being more affordable than full-time employees, the Philippines boasts a highly-skilled workforce with a huge pool of professionals who are university-educated – hundreds of thousands of university graduates enter the workforce each year with western-influenced training, excellent communication skills, and the unique resourcefulness only Filipinos can deliver. The Philippines also has a highly specialized and diverse talent pool with employees who have worked for large multinational and business process outsourcing companies. And considering that the Philippines shares a similar time zone with Australia (the same as Perth and only two hours behind Sydney), this offers plenty of benefits and higher value services for companies further afield looking to expand their 24/7 customer service offering.
Getting started to outsourcing in the Philippines
Risks and challenges will always be a part of every business endeavor. With this, as a small business owner with limited resources, preparation is key to making sure your business gets through tough times. To get started with outsourcing services in the Philippines, set modest and feasible targets since it can help you focus on the here and now while staying ambitious enough to grow your business. Outsourcing needs serious planning and resources to be effective. If you’re well-informed and well-prepared about your next business endeavor with outsourcing, then you can begin to scout for the right outsourcing provider to help you.
Frequently asked questions
How much should outsourcing cost in the Philippines?
Outsourcing to the Philippines should cost you between $500-$1500/month depending on the type of staff you hire, saving you about 70-80% savings in salary costs – which can greatly improve your experience in outsourcing in general. In the Philippines, the standard pricing model is that they are generally 30% of an equivalent role. For every role you have in Australia, you can typically hire three people in the Philippines for the same cost. This is achievable due to the Philippines having one of the lowest costs of living among its regional neighbors. Offshore staffing is highly sought after – an employee working in an outsourcing/offshoring role earns, on average, more than double the minimum wage – AUD$770 – AUD$930 per month.
Read: The Philippine Outsource Salary and Costing
Why is the Philippines famous for outsourcing?
The key reasons why outsourcing to the Philippines is attractive for a lot of foreign investors and entrepreneurs looking for outsourcing services are the cost effective labor costs, where you get access to a highly-skilled workforce at such an affordable rate, and the deeply-rooted values they uphold in their personal and professional lives – there is an unmistakable, genuine sense of cultural compatibility that you can only find in the Philippines. Outsourcing to the Philippines saves your business from high costs and cultural incompatibility. These factors made the Philippines as the top outsourcing destination for the United States, Australia, Britain, and other parts of Asia, and still counting.
What are you waiting for?
If you’re a business owner looking to try outsourcing services for the first time or you’re in the market for the ideal partner to push your business to even greater heights, you don’t have to sweat looking for your outsourcing partner when you can turn to a reliable outsourcing company like The Outsourcer who can provide you everything that you’ve been looking for (and more) with their cutting-edge team of Filipino virtual assistants.
The Outsourcer is a game-changer in the Philippine and Australian outsourcing industry, having only the best talent for whatever job you need to be done. We will work on continuous training and coaching to give you the best results for your outsourcing needs. Save on recruitment and training expenses, while maintaining successful operations to grow your business by scheduling a free consultation with us today.