Outsourcing In The Philippines

The media has been hurling a lot negativities at business process outsourcing companies. The dissenting and repugnant headlines and articles about BPO has stirred many, causing some groups of people to become skeptic about the concept of outsourcing. But before you believe all the repugnancy, do inquire from your service provider to get things straight.

Concerns like data security and loss of domestic jobs in places where companies outsource jobs are the major issues linked to the proliferation of the BPO industry. In addition, some critics say that while outsourcing reduces operational cost, it gives rise to loss of supervision and tendency towards clandestine acts on the part of the service provider. But don’t these problems happen with in-house employees? Does it not that the likelihood of data security breach (assuming this is going to happen) is quite the same with in-house employees as with an offshore team?

Why is it that despite the unpleasant news, more companies are still entrusting business process to offshore firms? This is because the advantages outweigh the risks. Usually, the admonitions that root from the yet unseen risks aim to disprove the claims of the BPO sector of cost-efficiency. The black propaganda is generated by people who either misunderstand or exaggerate the system encompassing outsourcing firms.

With regard to the security issue, virtually all BPO firms have intact measures that prevent outsiders from having access to the internal system. Any company does utilize advanced software to protect network from external breach. Employees only have limited access to company data. If you are skeptic about an offshore company’s security system protocol, inquire about it. Any reputable company is going to show you a demo.

Loss of system control is another concern. Decide whether you have to give up the entire control of a business process to the offshore company. Most BPO firms are happy to give you access to documents related to the business works.

Perhaps the most important issue cast upon business process outsourcing companies is loss of jobs in developed nations. That jobs are transferred from developed to developing nations is an unfounded assertion. Layoffs have been happening even before the proliferation of the BPO industry. The loss of jobs that can be attributed to outsourcing is too minimal. So, the blame for job loss cannot be put on the outsourcing companies. It must be noted that outsourcing became a trend as a reaction to the impinging downturn several years ago. Furthermore, there is no direct correlation between the outsourcing trend and unemployment rate.

Asia has seen a boon in technical support jobs as more and more call centers and BPO companies are opening. The rapid growth of contact centers and outsourcing companies in countries like India, China, and Philippines has been evident. The latter rivals India in having the most BPO teams and companies. One could guess by haste that more and more companies are kicking off each time. Truth is more and more SEO teams, offshore assistants, and contact center representatives are becoming in demand today. More companies in UK, Europe and North America are trusting offshore tasks to outsourcing companies in Philippines.

Philippines happens to be one of the most culturally adaptive people, who while keeping their heritage intact, are able to embrace good traits of other countries. It’s no wonder why Filipinos are able to learn English more easily than any other Asian countries. This international language of commerce, law, and education has been a part of Filipino culture for more or less a century. This is why Filipinos by far have more edge than any other Asian nationalities in the BPO industry.

There are obvious reasons why outsourcing is becoming the modern scheme in doing business in UK and North America. Most managers and owners would want to spare resources, which could be used in core functions. Regular tasks and non-core duties are subcontracted to offshore companies or teams, which do routine jobs at much lower rates. A typical company would have to pay for a BPO team’s services. There’s no need to provide them with their offices or benefits since these professionals have their own workspace and they are only paid for their services.

Philippines is a huge soup bowl of IT professionals who work as offshore assistants for foreign companies in Europe and North America. Most of them work under an outsourcing team or company, but others work as free lance SEO writers, web designers and developers, and virtual assistants.

Businesses in UK, for instance, generally see a forty-percent cost saving advantage when outsourcing jobs to BPO teams in Philippines. Imagine this cost-saving benefit, which is not only an edge but can also be an added investment.

If you are looking for an outsourcing company, Philippines is just the right place to start searching in. However, we can give you a valuable tip by asking for a trial period before making arrangements with a team. You can utilize this feature to test how good the services of a BPO team are.

Also look for outsourcing companies that serve more functions. The usual functions that a client like you would need are content writing, link building, web designing, and web developing. If you are to get your business to the top spot, opt for the best SEO writers, virtual assistants, graphic artists, and webmasters. You can only find them in trusted companies. Of course, you would know one once you get to see their online site.

Working with BPO teams in the Philippines is your best option to success. This is undeniable. Many companies who have sought partnerships with firms in this country have seen progress in a short time. This could be accounted to cost-efficiency. Outsourcing to Philippines is not only a feasible but also a beneficial choice.

There are various cons about seeking offshore services. Since this is not your typical in-house team, there is no way you can summon your offshore employees face to face. However, correspondence is done through internet – chat and email. Indeed, advanced communication system bridged the gap between countries oceans apart.

Other managers are worried that they may not be seeing the same efficiency that is seen with in-person assistants. This is a misconception though. BPO teams in the Philippines are well supervised by office managers and heads. This is not a disorganized nation and people are well-exposed to office set-ups and organizational make up. For instance, team leaders supervise agents from time to time. In an SEO firm, a manager may supervise their writers and assistants regularly. Workers are also directed to produce output reports on a regular basis to track their efficiency. In most cases, an employee’s performance may be evaluated from time to time and if they display lack of productivity they shall be reprimanded or dismissed. This is how efficiency in any office and firm is maintained. Thus, business people outsourcing to Philippines are ensured of tapping into a pool of skilled and disciplined individuals.

Most of the companies that seek offshore teams are in United States and another major problem seen was the difference in time zones, such that when people in the US are working, those in Philippines are asleep. However, this was easily remedied by changing the work schedule and adapting the so-called graveyard shift. Employees serving foreign customers would have to work on business hours of the people to whom they cater services.

Another concern is the difference in culture between Philippines and developed nations. Although it is true that there, indeed, is some difference, it is not quite relevant. What is more important is that there is work done and there is efficiency. Filipinos have broken the language barrier, for instance, and they speak English better than any other country in Asia. Moreover, Philippines easily capture, understand or consider other people’s culture with respect.

The number of firms dedicated to outsourcing increases by the day and those that are already established are expanding. This is good news both to foreign companies and to local employment because much of the number of graduates actually go to some of these BPO firms. Outsourcing to Philippines actually ease employment problems in the country. The over-all advantage outweighs the cons by several notches.

Philippines is seeing flourishing of the business process outsourcing industry. In 2008 there was an increase in the outsourcing industry by approximately forty percent. In the same year there were about three hundred thousand people in the Philippines who are employed in BPO industries. Majority of them are in the call center business industry. However, there are varied services in this country ranging from contact service (call centers) to medical transcription and even to payroll outsourcing service.

Currently, the country remains second to India which leads BPO industries in the world in terms of employment volume. However, the world has now recognized the capability of Philippines in harnessing their labor force in this field. It is not a surprising thing. Although the country has not been recognized as a top country in technological fields, it is now assuming high place amongst other Asian nations in this IT-based field. Moreover it is in the midst of upgrading its IT-related education/training.

The strength of its professional force comes from the competent educational background of most Filipinos. In fact, the Philippine human resources have long been recognized around the world. Many Filipinos have been employed elsewhere in the world and many foreign countries are aware of the skills of these people in virtually all fields. It boils down to competent education. The Philippines has some of the fine universities and colleges. It produces valuable graduates that are not only theoretically equipped but are also deeply trained in their respective fields. Thus it is not surprising that there are lots of proficient IT graduates who immerse in the BPO industry not only because it is a popular option among fresh graduates but also because they can.

Filipinos are built to be flexible individuals who can accomplish virtually any tasks when properly trained. These days the government is funding short term courses which people of different age ranges can enroll in. It is not surprising that not everyone you find in the BPO industry have formal training in information technology or customer support; however, they are equipped with sufficient training that qualifies them in the field. For instance, there are short courses for call center training that last within weeks. The government also offers assistance to people who are interested to embark on this profession but have restricted financial capabilities. It is no wonder that the country currently sees an increasing number of graduates of technical/vocational courses that includes programming, web design, customer service, medical transcription etc. Such short/crash courses make people more qualified to work in related fields like call centers and BPO.

With the increasing need of countries like US, UK, and Canada to outsource business tasks, countries like China, India and Philippines can only respond to such need by harnessing their human resource to become more fitted to what the industry needs.

Outsourcing technical support to Philippines is an intelligent choice and any business client from any part of the globe knows why. The rapid growth of IT in the country prompted many foreign business to not only invest but also farm out jobs to this booming southeast Asian nation. It is about to top India in the BPO scene but even if it doesn’t, it remains to be one of the most sought after destinations for IT-BPO in the world.

It has been reported that due to the economic setback experienced in certain countries in the western world, the outsourcing industry in Philippines is going to see a boost. Fact is that its share of the US global market, for instance, is nearing to ten percent. What is the implication? Well, you are seeing more buildings and offices for call centers being established in Philippines. Many foreign businesses are setting aside hectares of land area for IT hubs to serve as grounds for their BPO establishments. These investments have made Philippines one of the top-listed real estate markets in Southeast Asia. Anyway, anybody might ask why foreign investors are looking to Philippine soil as grounds for business establishment. Well, unless you were into real estate, you wouldn’t understand quite much the reason behind the lure but just as the workforce in the country offers lower cost so does the property value of most real estate. Any investor has learned that the cost of space can be up to five times cheaper in the country than anywhere else.

Did you know that six out of ten office spaces in the business metropolis of Makati are occupied by BPO firms? It is not a surprising discovery that outsourcing industry is rapidly encroaching the country with promises of job openings to further employment. Many companies in Europe and United States are no longer employing their domestic workforce. Instead, they now subcontract many vital tasks to offshore companies, many of which are found in Philippines whose outsourcing firms do not demand rates similar to those in their locale. The typical rate or the average rate of wages and salaries apply here.

Doesn’t it seem that in the last ten or twenty years Philippines has been sending its labor force to other countries? In the recent years, many workers do not have to leave the country to serve foreign people. The utilization of advanced telecommunications and internet technology has prompted the boon in remote and offshore working in the nation. As one of the top holders of BPO share in the world, it continues to keep abreast with the technological advancements, which it could exploit for the benefit of keeping pace with this so-called third wave industrial and commercial revolution.

One of the most stable BPO players in the world is the Philippines, which is projected to be able to employ approximately one million people in the industry. But according to critics, the BPO scene in the country is currently under the strains of different factors. Hundreds of thousands of people are relying on jobs outsourced by foreign companies and clients and if the human resource proves inefficient in its mission to cater to these foreign investors, then an erosion of the Philippines BPO sector is imminent. But this is far from happening.

News and media does a lot of exaggeration of statistics and everything. Comparing Philippines with other players in Asia is not a very sensible way of assessing the kind of resources that the country possesses. The country, by far, has topped a lot of countries that offer IT services.

According to some critics, Philippines lacks the infrastructure and technology to be able to perform appropriately in this industry. This remains a speculation though, as the country has kept abreast with any advancement in the information technology sector.

A more demeaning criticism speaks about the inability of most Filipinos to speak fluent English. English proficiency is important because every BPO employee serves foreign clients that are mostly from USA or UK. Hence, it is only imperative that the outsourcing workforce in the country know how to communicate using English well. Compared to any other nation, particularly in Asia, Philippines speak the universal language better. Learning of English language is a major part of the curriculum in learning institutions. Although it is true that not everyone can speak the language fluently, the country still has a greater number of graduates and professionals that speak English than any other Asian country. Fact is that English is a medium of communication in the corporate world. Philippines BPO is one of the sectors wherein English is widely spoken. In addition, proficiency in the language is a major consideration during hiring people who want to be part of the outsourcing industry.

That Philippines BPO suffers from low productivity is a major misconception. The fact that it is seeing growth is in indication that the BPO industry has proved to be productive. Though it cannot match India’s resources, it has become one of the major destinations of investors who are seeking cost reduction during this difficult time. In addition, more BPO companies are being set up each year and more people are embarking on this offshore service providing scheme.

Some businesses may find farming out functions to Philippines as a new venture since Asian countries like India and China quite dominated the scene recently. However, Philippines is almost on par with both these BPO giants as more companies related to IT support industry are being established each year. This is why more call center agents, medical and legal transcriptionists, virtual assistants, graphic designers and SEO writers are in demand these days. Surprising, but this is the fact. Philippines outsourcing has gotten itself known to the world not only in cost-efficient but also reliable services.

The primary goal of companies which outsource to an offshore team is financial cut back. Think about it this way. If one can hire a service for a lower cost and this particular service has almost the same quality and efficiency as the one with a higher price, would he not go for the former? In the midst of recession, companies are looking for cost cutting measures to save investments while still gaining on profits. Outsourcing has become an important way to reach such a goal.

There are many technical support services in the Philippines and there are many factors that led to this explosion in the IT industry. Perhaps an important factor is the increasing number of people who are becoming proficient in computer related skills that involve IT, programming, web design, and wed development. In fact, the flock of people with IT-related jobs is not purely made of individuals with degrees in IT or any computer-related studies. This is because most citizens of the country are highly trainable and there are a lot of courses, some of which are funded by the government, that bring more people to the IT support world. For instance, crash courses on contact center training, medical transcription, and English language training have become part of the short courses people can enroll in.

Another important factor that sheds some understanding regarding the explosion of Philippines’ Outsourcing industry is that more and more foreign business owners, all of which have online pages and sites, are trusting the workforce in the country. This is an obvious indication of the reliability and competence of its professionals. Today, BPO companies are almost everywhere in the country not because it seems an industrial fad but because there is a need from the other side of the world that must be met and the country appears to be in a good stance to essentially fill the need.

While we have pointed out the excellence of Philippines in IT skills to match the foreign demands from UK and Europe, for instance; another important thing worth mentioning is the ability of Filipinos to learn new tasks so easily. This agility plus good conduct and good relations towards clients are significant contributing factors to the boon we are seeing today. Philippines Outsourcing sector is certainly to stay for a while – a long while.

Philippine outsourcing has not been around for a long time but it has been a success in the short span since its inception. When business people found out that they can procure services from a different country at a much lower cost, they just could not afford to turn their backs on the opportunity. The next thing, everybody wants to procure services from low-charging firms. We call the latter firms as offshore companies – the outsourcers. They produce services that were once produced by the human resource of the companies that seek them. And since they offer such services at the same quality but much lower price, business investors just could not say “no.”

Many tasks can now be sent to people who are oceans away. Banking stuff, bookkeeping, and records-keeping can be sent to offshore firms. Note that there are different types of outsourcing firms and there different types of jobs that can be farmed out as well.

Philippine outsourcing is more of customer service relations and IT-based companies. There are thousands and thousands of call center agents now dispersed in different cities and companies all over the country, and the demand is still heavy as major companies are expanding. In addition, BPO companies that offer SEO, web design, and web development are also growing in number.

There is just a lot of foreign demand despite the recession, and this seems due to the reality that more investors are willing to procure services and labor force if they can at lower cost. As they ride out the recession, the plan of going further through outsourcing seems a very viable option.

Many industries and companies in United States and Europe would still want to maintain top customer relations and this is why they offshore customer relations service to companies in Philippines that offer such services.

On the other hand, they also want to take their businesses farther online and take their market share higher by tapping into the internet. They are not necessarily basing their businesses on the internet but they exploit the advantages that this technology can offer. This is why they hire virtual assistants or seek services from SEO firms that are willing to make their company sites more popular on the world wide web.

Some skeptics are warning the business community about seeming or assumed disadvantages like supposed inefficient work output and loss of personal interaction. Nonetheless, people who have made arrangements with Philippine outsourcing/offshore teams know better.

Many BPO firms in different places in Asia are willing to serve you in no time but this does not mean that you can choose a company right away and put all your trust in them. Finding the right firm or team is not easy, just as looking for new hires isn’t. You have to be even more careful when choosing a firm online because there are a lot of incompetent people in this industry. In addition, you certainly do not want to stumble on a company which is inappropriate for you. When you are looking for outsourcing service providers, keep in mind that you will be seeing too many of them on the internet, with all the promises. Everyone wants to excel. Everyone wants to sell out. In business, this is a basic thing.

Realize the impossibility of finding the perfect company. Why? No company is perfect. Each is bound to limitations. However, there are certain firms that could deliver the optimum service without having to brag a lot. Consider the following aspects when finding an outsourcing firm:

its website and its accessibility
the range of its services
the number of people or workers it has
reviews from clients

Be wise in understanding that the websites of outsourcing service providers is their window to the vast internet field. That is how you reach them. That is how you see them. They make a good impression out of their online pages – how they are organized and how they are structured.

It is also a basic consideration to know the range of a company’s services. Keep in mind that there are pros and cons with broad and narrow range of services. A firm that offers a wide range of service may have grown over the years that they have furthered their operations by catering new line of services each time. Some teams may have, over their span in the scene, have sought to stay in a few number of services but have upgraded the work/output quality.

Sometimes the size of a company does not equate with edge. Some small teams could actually compete with large firms in terms of work quality and efficiency. Of course, the firm with more people can serve more customers or clients at a given time or have a broader scope of function. Nonetheless, with more people being supervised at any moment, overseeing the performance of each worker may not be as rigid as when there are fewer workers.

Nevertheless, if you can get to see client reviews, you are seeing a glimpse of a company’s performance. Aside from viewing the profiles of outsourcing service providers, feel free to ask for sample work or trial work periods. This is when you can freely evaluate their work before finally making arrangements.

Several years ago the Philippines was known as an agricultural country and information technology was not a major thing. A decade ago much of the workforce work overseas. But times brought some changes and one of these changes include a boon in the IT sector. The explosion in the information technology sector has reached Philippines and not long after that call centers and technical support companies have flourished in many of its cities. Philippines’ BPO industry began to show the world its strengths recently. This is not surprising because this southeast Asian country has proved flexibility. Filipinos can do almost anything. Their creativity and flexibility allow them to be in all sorts of fields.

The growth of the IT sector in the country has been due to huge demands. More college schools would want to offer computer and information technology courses to keep up with global demand and to produce competitive graduates that can go up against the global pool of workers.

The top player in this industry today is India and there might be no way that Philippines can go beyond. Let us face the fact that there is just greater work force in the former and that is attributed to their higher population. In addition, it has been around in the scene longer. However, there is no issue between work quality and performance between these two countries. Philippines’ BPO has proven the worth and one way to gauge that is through the number of foreign investors looking at the country to seek work force.

The local BPO industry sees a boon because it is unlike any other kind of private industry that give their new hires minimum wage rates and heavy work load. Most call centers and outsourcing companies attract new hires with a higher salary rate. Thus, many of these firms can ensure there would always be available work force. In addition, the increasing demand from foreign clients that wish to outsource jobs has caused expansion of huge BPO firms and establishment of new companies.

Take note, however, that while the wages of workers in these companies are generally higher than that of workers from other private firms, such wages would still be much lower compared to what workers in US, UK, and Europe earn. This means that a businessmen offshoring to Philippines’ BPO firms cut back on cost. In fact, they can save as much as 40% of operational cost. That is a great of cost reduction, and the spared funds may be even used to finance other projects.

The economic slowdown has affected all businesses and industries including outsourcing firms all around the world. Most companies in United States and Europe have embarked on the new trend. Moving key process to an offshore company has become an important measure to reduce operational cost and to be able to survive during the crisis. Reports say that companies that contracted business process outsourcing companies have seen an increase of 25% to 50% in their revenues. This is good news because any cost reduction means availability of extra funds that may be utilized in other fruitful ventures.

As more companies are considering offshoring as a viable option, more and more BPO companies are being established. This industry is growing because firms and clients relying on it experience outright advantage. Huge companies may serve as service provider, catering to customers and doing ancillary tasks that are plain and simple enough to be undertaken by any group of people with considerable skills and expertise.

Outsourcing is a broad respect and there are many tasks that can be moved out to an offshore firm. Today many commercial giants have farmed out a part of their business process to different countries where the cost of labor is lower. Philippines, India, and China are some of these countries that have been accepting outsourced jobs every now and then. The growth of the IT/BPO sector in these places have gone to the heights. In Philippines, for instance, the peak of BPO industry has caused an increase in the employment generation and new graduates with the right skills and talent are expected to have jobs soon.

However, as the industry booms and more business process outsourcing companies are being put up each time, the competition grows stiffer. This is not just about the competition among businesses in Europe and US. But also about the competition among service providers in developing countries. Many of them would have to implement advertising to promote their company on the internet. However, this is generally an easy task for some with excellent SEO campaigns. Of course, not only businesses in the western countries can exploit SEO techniques. But IT/BPO firms too.

The downturn plays an important role in this overall process. While it caused many business owners to enforce drastic solutions, one of which is outsourcing, the lingering downturn has also caused a few of them to reduce business process, including the ones that are outsourced. But the scheme has not stopped and it remains a viable option. That is why more business process outsourcing companies are still seeing growth. This is an era of sheer economic revolution.

The economy evolves in complex, sometimes strange ways, that businesses should be on guard to the subtle changes that are taking place from time to time. Not so long ago, outsourcing has spread all over the world and many developing countries have benefitted from this global economic revolution. Business process that can be transferred to a country where labor cost is low are moved out in order for businesses to survive during the tough economic time. There are a lot of service providers around the world and one of them is Philippines. Outsourcing in this country started more than ten years back as a result of companies from United States and Europe bracing themselves against stiff economic times.

There are a lot of tasks that can be outsourced, most of which are non-core duties that can be farmed out to offshore firms that can deliver the services at much lower cost. This efficiency helps many companies reduce operational expenditure and this cost reduction is a good thing if anybody wants to ride out tough times.

The reason Philippines has become one of the top choices is that the country has a bigger pool of skills and talents than any other country. A huge number of the labor force in the country is employed in the BPO industry. For instance, there are a lot of call centers in the country. These institutions are an important part of the IT/BPO sector in the local scene. But Philippine outsourcing industry is an amassment of copywriters, web designers, web managers, technical support representatives, and virtual assistants that are providing services to the world.

The maintenance of competent labor force is ensured through stringent hiring process. Only the ones with strong talent and work ethics last long. Only those who are willing to embrace the new world order can stay. Most people in this industry have to adapt to the working time schedule of their clients.

It has been reported that there will be more then 900,000 Filipinos in this industry by 2010. That might reach more than one million. This is because there is a flowing demand for the Philippine talent and expertise, and many foreign business owners would rather check out this professional pool than those from other countries.

Philippine outsourcing has earned its reputation and the country has got some of the most reputable service providers, which inlude large firms and smaller teams as well as one-person freelancers.

That a page thrown online is futile by itself is truer than many understand. Without having online pages undergo search engine optimization, they would be a waste, lagging behind search engine result listings. That is troublesome! Experienced webmasters know better than simply throwing a site onto the internet pool. Hiring an SEO guy, who does the complicated procedure of optimizing your webpages is a wise move.

As there are a lot of SEO experts and consultans all over the world, there a good number of fake, untalented ones. Thus, care in choosing must be kept in mind.

Picking out the right consultant is tricky. And that’s an understatement. Most website owners have hired one and paid for their services only to be disappointed with the outcome.

SEO seems the recent solution to the recent problem brought about by the explosion of the information technology and the extensive use of internet in all aspects of living. Businessmen have to keep abreast with the current trend and the current trend is to bring the business to the web and to make sure people will get to visit their pages on the web. Without any assistance from an SEO guy, it would be difficult to achieve such feats. Even if the business owner is internet savvy, they will not have much time to deal with such a tedious job. Most business people would want to focus on their prime goal of manning their business – that’s what they do. Hence, delegating other crucial task is essential to success.

Other people remain skeptic, engulfed by cynicism and consumed by the assumption that SEO consultants are just going to squeeze money from them. This is a major misconception. It is like no longer attending school because the school makes money out of its students. Or not buying goods at a supermarket because it will only make money out of its customers.

People who work for you deserved to be paid. What you should be guarding is the quality of their output. If the assisting staff you hired made good results then you have made the right decision. No question about that. The same thing applies to an SEO team. If during a specific period, they don’t render more than acceptable outcome, it is worth looking for another.

Search engine algorithms are now changing and it is good knowing that your SEO guy is abreast with all the current changes. First of all, he should know what he’s doing. Though SEO is not an exact science, it is not necessarily a hit-and-miss strategy. Eventually you would know whether your virtual staff is doing what they should be doing or not.