Did you know that BPO companies in the Philippines employ more than 2 million people? That’s right, The Philippines is a strong competitor when it comes to global BPO companies such as the call center industry. But first, what is outsourcing? Outsourcing shifts tasks, operations, jobs, or it is processed to an external workforce by contracting with a third party for a significant period of time. So, why do you need to outsource? Well, in order for the company to be effective, they would need to outsource and to look for staff and services from other companies, they can also do this if their own workforce’s corporations are not performing well. Of course, if you outsource, you can limit your costs since the training fee of an internal staff is already an expense. There are advantages when a company uses outsourcing, so the first, which has been already mentioned, is that outsourcing is cost saving since companies can prioritize important matters in their firm and not waste their money with insignificant circumstances. Second is having an improved management, since a company is acquiring an employee from another firm that is proficient with the role that they are doing without risking time, effort, and money. But, even if outsourcing has its advantages, there is also a disadvantage in doing this method, which is having a security risk since you are obtaining an employee outside from your company and it is risky since you do not know if he/she can be trusted and can disclose confidential information and trade secrets about your corporation. To further understand what an outsource is, here is an example: Iphone 11 of Apple is a known product worldwide which is designed in the United States of America, but is manufactured in China. So you see, even the largest traded corporations outsource since they see the benefit and its advantages to help them become on top of their industry.
Today, the Philippines has become the world’s largest contact center for outsourcing where it currently employs more than 1.3 million Filipinos. Now the question is, why is the Philippines known for outsourcing? There are five reasons: first is that the Philippines is cost-efficient in labor because workers in the country produce high quality work for a low price, countries like the USA, Canada, etc. hire from the Philippines because of this basis. Second is that Filipinos are flexible, because whatever time and place they may be, they can adapt and learn new skills. Third is that Filipinos are fluent in English, since this is their second language, also during the course of their education they are taught and trained to speak the English language. Fourth reason is that there is human resource availability, because even if Filipinos work in graveyard shifts, they still produce quality work since there is a good compensation and this is also considered their training for working at different time zones. Fifth is having cultural compatibility, since there is also a Western culture in the Philippines, foreigners can easily relate to Filipinos since there is something common between both countries.
With these reasons presented, it is clear that the Philippines is one of the top destinations for the outsourcing industry. It is very important to consider the advantages of outsourcing since this can really help companies to expand and grow their businesses. If looking internally and this strategy did not work to produce quality products, then you should consider looking outside of your corporation. Remember that a competitive company would do anything just to be on the top. Looking back at the example of Apple, they were not afraid to take risks, since they considered doing outsourcing. Yes, there is a risk in manufacturing their products in China, since it can damage their image in terms of the quality of their products. But it is important to always be one step ahead if you want to be on top of your industry, and be creative in how you sell your products. Outsourcing is effective and can change the way your company functions since you are looking for a service or employee outside of your corporation, and at the same time you are also limiting your expenses, where it is a win-win situation for your company. Outsourcing in the country also helps citizens to have jobs and to contribute to society. So now, with these reasons and facts presented, do you now know the reasons why the Philippines is considered one of the top destinations for outsourcing? If you want to be effective and to be on top of your industry, outsourcing may be your answer.
