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Tag Archives: offshore

Offshore Outsourcing Philippines: A Global Industry Player Continues to Grow

Offshore Outsourcing Philippines: A Global Industry Player Continues to Grow

Offshore outsourcing in the Philippines has grown to be a major player not just in the local economy but also in the global business process outsourcing industry. Outsourcing is engaging the services of an independent firm. This third party firm will be handling a task or several tasks and this will be paid as a service. In some cases, one specialist will be handling the tasks and in other cases, the service provider assigns an entire team. The number of outsourced employees depends on the number of the tasks, the difficulty or complexity of the tasks and the company’s budget for hiring an outsourced unit or team.

From being a newcomer and provider mainly of voice services around a decade ago, offshore outsourcing in the Philippines has grown to be one of the global industry leaders. The country has been dubbed the “Call Center Capital of the World” in a New York Times article and is now the no. 2 destination in the world – next only to India – when it comes to complex services and non voice services.

Here are some of the reasons the Philippines continues to experience tremendous growth in the global business process outsourcing industry:

1. The outsourcing destination has maintained its edge as a service provider with a workforce composed of individuals with topnotch communication skills and language skills. A large number of the working age population can speak English well.
2. Employees from outsourcing firms in the Philippines offer cultural fit. Filipinos grew up with and are very familiar with Western culture. A good number of Filipino employees are also familiar with landmark U.S. events, key figures, and the nuances of western culture including humor.
3. The industry is said to be maturing, branching out into non voice and complex services which include animation, legal services, software development, accounting, medical transcription and many more. This is the same path that India took, going from mostly voice services in the beginning and then growing to have other outsourcing companies that offer non voice and complex services.
4. There is a large workforce composed of tech savvy and technically proficient individuals.

To make the most of offshore outsourcing to the Philippines, you should, of course, make an effort to find a topnotch service provider. Check out several outsourcing vendors and compare their services and fees. Ask around to find out what the reputation of the service provider is in the industry. Ask around, too, for some feedback from previous clients. A good number of years in the business could indicate a level of consistency and quality. However, if the company you are considering is quite new in the business, you need to find out the credentials and training of the staff and the quality of the top management. It’s also a good idea to learn more about the outsourcing destination. If, for example, you are considering outsourcing firms in the Philippines, it certainly helps if you know the latest information on the country’s infrastructure, business legislation and other factors that affect business process outsourcing.

Offshore Outsourcing Philippines has been proven; fast and effective, with Outsourcing and Content Moderation, Customer Service Outsourcing have a low-cost and effective management.

The Development of Offshore Outsourcing

The Development of Offshore Outsourcing

The society today has gone a long way since the invention of electronics and computers. People have found more and more ways to utilize this advancement. Through the years, computers have been slowly developing and have been integrated with other technology and made it possible for the birth of video games, cell phones, high-end televisions and smart phones. But, one of the greatest feats was its contribution to the business world.

Business owners have learned to use technology for the ease of their transactions. Much more so, it has been a great help in their promotion and advertisement. This is where outsourcing comes in. Outsourcing has been a buzz lately, so is “offshore outsourcing”. But, what does these terms really mean?

First, let us be enlightened of what outsourcing really means. The mere definition of outsourcing is the practice of contracting one company by another company to perform job functions outside the corporation instead of having an in-house individual do it. This might sound a little confusing at first. You might even think, “Why would I even do that?” The truth is, outsourcing helps the company to be more time-efficient by eliminating tasks for their employers and just concentrate on things they should have focus on. For example, you do social bookmarking for your website when it should be spent doing more important tasks. This is why outsourcing is a big help for companies.

On the side, offshore outsourcing may be, in cases, similar and different. Since both have the term “outsourcing”, it has the same function and purpose as outsourcing. Technically, you can call it a type of outsourcing.

Offshore outsourcing literally means outsourcing your business to someone that is off your shore, or in simpler terms, someone that is not in the same country as yours. The creation of this kind of outsourcing can be attributed to the fact that more and more products are marketed abroad the place where it originated.

But it does not follow that any business can be outsourced offshore or what we term as “offshore-able”. There are things to consider. There are general criteria and they are as follows:
(a) There is a major difference of wages and cost between the home country and the target outsourcer country;
(b) The job or task can be done in “telework”;
(c) The work has high information content;
(d) The work can be transmitted over the internet;
(e) The work is easy to set up; and
(f) The work is repeatable.

The driving factor for the creation of offshore outsourcing is the need to cut the cost while it’s enabling or maintaining factor is the global development of electronic internet network which allows digital data to be accessed and delivered to almost any part of the world.

One of the main factors that influenced the beginning of this kind of outsourcing is the combined pressure of lowering the labour costs, save operational costs and improve productivity. The logic is: if they want to keep up with their competitors by lowering the price of their product, companies should start reducing their labour costs and save money.

Best Offshore Outsourcing offers great service that will boost your business, provide work that is efficient and effective, allow you to have maximum time flexibility with your staffing and give you the security of acquiring a responsible, knowledgeable and high quality service provider without the risk of spending too much money. Offshore Outsourcing is a great strategy for growth and savings while at the same time getting the best talent possible without compromising quality.

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Offshore Outsourcing Destinations: A Comparative Study: India – China – Philippines – Vietnam

Offshore Outsourcing Destinations: A Comparative Study: India – China – Philippines – Vietnam

There is no doubt that the top 5 big players of the offshore outsourcing industry are India, China, Malaysia, Philippines and Vietnam. Let’s try to review how they compare on factors like language, IT infrastructure, educational system, cost, government support, political and economic environment, talent pool, and cultural compatibility.

Despite world wide talk over jobs from the US and UK being outsourced to Asia-Pacific countries, the surge of outsourcing has anything but abated. More and more big, medium and small businesses are looking to reduce their operational costs by outsourcing the same work to better qualified professionals for a fraction of the cost. As per the 2005 Duke University CIBER/ Archstone Consulting study, a whopping 73 % of Fortune 2000 companies admitted that offshoring played a crucial role in their overall growth strategy.

1. China – A newcomer in the outsourcing sphere, China is a close contender of India, but still lags behind the sub-continent due to its lack of English-speaking manpower. Still, China is slowly growing as an IT outsourcing destination for those looking for another cost alternative to India. A recent study by PriceWaterHouse Coopers threw up some surprising findings. The study revealed that by outsourcing to China companies could save approximately 37% as compared to if they outsourced to India.

Recognizing that outsourcing may well be good for their economy, the Chinese government has started to actively showcase to the world the benefits of outsourcing to China. It has liberalized the economy, made its laws and policies more flexible and is stressing on education, particularly learning English.

However, although India is a low-cost destination, China offers services at a cheaper rate than India, and that’s where its strength lies in the labour sector. Nevertheless, China’s workforce in the outsourcing sector is not as large as India’s and not as skilled, especially concerning fluency in the English language.

China’s outsourcing industry is still in its fledgling state, with start-ups still lacking senior managerial skills. The huge cultural divide between China and the US and other western countries is the huge cultural incompatibility.

2.Vietnam:- Vietnam is fast emerging as a promising offshore destination for software outsourcing and for fulfilling other IT needs of businesses. Political stability is another factor. The current government has held power since Vietnam’s 1975 reunification, meaning that there have been more than 30 years of political stability in the country. In addition, Vietnam has had no conflict with any neighbour country since 1979 and neither have there been any ethnic and religious conflicts within the country. So, companies find it safe to outsource to Vietnam.

There are many factors that swing the situation in Vietnam’s favour. It has one of the most stable and secure economies in the Asia-Pacific region and has been a WTO member since 2007.

Its labour cost is economically attractive, with IT outsourcing being almost 30 percent less expensive than India and 50 percent less expensive than Eastern Europe (source: NeoIT 2006 and Ukrainian Hi-Tech Initiative 2007).

Vietnam also boasts of one of the youngest, most hardworking and fast learning workforce. Sixty percent of the country’s population is under 30 years of age. Literacy levels are high and English is commonly spoken and understood since English is taught as the main foreign language since grade 6. The country has a 96 percent literacy rate and a whopping 80 percent of the country’s college graduates hold degrees in the sciences (Vietnam Economic Times). This makes Vietnam an ideal destination for outsourcing technological projects.
Although Vietnam does face stiff there is fierce competition from other outsourcing countries like India, China, and the Philippines, the Vietnam software outsourcing industry is more than capable of facing this challenge. The country boasts of more than 3,000 companies and 15,000 IT engineers in software outsourcing alone. In addition, the Government of Vietnam is actively developing the IT sector, setting up Software Technology Parks all over the country.

Vietnam’s economy is vibrant and fast-growing. Its laws and government policies are business and foreign investment-friendly and the country is constantly strengthening its protection and enforcement of intellectual property rights.

3. Philippines – Philippines dominates the Business Process Outsourcing (BPO) industry, thanks to its vast manpower that speaks fluent English. The call center industry comprises 80% of the outsourcing industry in the country. Most schools in Philippines teach English. It also has a strong cultural compatibility with the western countries. Its history as an American colony gave the country both some sense of cultural affinity with the US. Operational and labour costs in the Philippines is also less as compared to other outsourcing destinations.

There are two areas in which outsourcing is flourishing in the Philippines – SEO and IT. The Philippine IT-BPO Road Map 2016 developed by Outsource2Philippines (O2P) and Everest Group estimated 2010 employment and revenue at 530,000 and US$ 9 billion, respectively.

It is also fast gaining a global reputation as being an affordable destination for shared corporate backroom operations, particularly in financial fields such as accounting and bookkeeping, account maintenance, accounts receivable collection, accounts payable administration, payroll processing, and the like.

Filipino animators are also carving out a niche for themselves in web development outsourcing.
Interestingly, the Filipino workforce is one of the most compelling advantages the Philippines has over any other Asian country. Education has high priority and the literacy rate in the country is 94.6% is among the highest in the Asia-Pacific region.

Philippines has an edge over its outsourcing rivals in the following areas:
1. Very cost-effective: Wages are almost one-fifth that of what are paid in the U.S. Infrastructure also works out cheaper for those looking to offshore as communication network, electricity and housing costs are practically half the U.S. rates.
2. Open economy: Philippines has a liberalized economy that allows for 100 percent foreign ownership in almost all sector. It also offers other attractive benefits such as tax reduction, especially in the Special Economic Zones.
3. Philippines offer state-of-the-art telecommunications facilities, and a well-developed transportation, business and economic infrastructure connect the three major islands. Adequate and uninterrupted power supply is another attraction, vital for the outsourcing industry that is so internet-dependent.

4. India – The hub of the entire outsourcing industry, India has managed to capture the developed world in a manner that is nothing short of extraordinary. Statistics speak for themselves. India alone commands 65% of the world’s BPO offshore outsourcing market. The country also has one of the highest numbers of ISO-9000 software companies and the outsourcing industry booms all over the large country.

India also has one of the largest talent pools in the world, churning out around 3.1 million graduates each year – highly qualified men and women in fields as diverse as medicine, IT, law, finance, writing, graphics designing, and much else.

Perhaps the biggest thing in favour of outsourcing to India is that language can never be barrier to effective communication. All educated Indians speak English.
India is one of the leading players in the world as regards Information Technology. The Government of India’s policies encourage IT development, which is why the country boasts excellent international data communication links and internet access in major cities. Thanks to government support, India has been able to build high-tech areas where technology and infrastructure are of international standards.

The Indian economy is among the top ten economies in the world and has a stable government that supports outsourcing.

Daya Mukherjee is a Senior Content Writer and Editor working for a Remote Staffing Outsourcing company in India. You can find out more information by visiting our Outsourcing, Outsource, PHP Developers Websites.

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The Rise of Offshore Development Outsourcing Services

The Rise of Offshore Development Outsourcing Services

The landscape of the global working environment is certainly undergoing a major overhaul. Giant corporate firms are truly disregarding the setback of the geographical limitations. Thus, you would find one company having simultaneous operations in its home base and in other countries. Offshore development outsourcing services have become the current revenue driver in major global firms.

What are offshore development outsourcing services? Years ago, companies have not conceived the idea that some of their business processes would have to be outsourced abroad. Now, almost all major global firms are jumping on the bandwagon to establish their own business process outsourcing elsewhere. Thus, there are many offshore development outsourcing services abounding especially in countries where costs are low.

Offshore development outsourcing services are referring to the process of outsourcing a company’s certain business tasks, like human resource, payroll and customer services, to a third-party and accredited outsourcing service provider. Thus, when major US companies enter offshore development outsourcing services deals, they would contract a third party to set up operations in another country, like India, Sri Lanka and the Philippines, where a specific business process of that company would be conducted in that other country.

Corporate savings

The main reason why big companies resort to entering offshore development outsourcing services deals is generation of hefty corporate savings. It is a well-known fact that currently, operations costs are really bulging. The global economy is experiencing a major crunch.

That is why to widen margins despite the prevailing business environment; companies are aiming to reduce operations costs. That way, profitability is maintained without sacrificing quality and efficiency. Offshore development outsourcing services transactions does exactly that. Offshore development outsourcing services activities help curtail rising business costs by generating savings from hefty wages that could have been paid to workers at the home base.

For example, a company is based in the US, where minimum salary packages are huge. That company would then secure an offshore development outsourcing services agreement with a business process outsourcing provider in a third-world country, like the Philippines. Under the offshore development outsourcing services deal, the accounting operations, for instance, of the company would be transferred to the third-party business process outsourcing provider.

Huge savings would be generated from reduced budget to compensate employees. An average outsourcing employee in the Philippines is paid just about $ 7 per day, which is up to five times lower when compared to the pay package for US-based employees. When taken collectively, the operations would help the company book savings by spending less on operations. It is that way that offshore development outsourcing services contracts proliferate.

Offshore development outsourcing services transactions

Offshore development outsourcing services could further be sub-divided into two big categories. Offshore development outsourcing services deals could be in the form back office outsourcing, where operations like purchasing and billing are transferred to the business process outsourcing. Front office outsourcing is that form of offshore development outsourcing services where marketing, technical support and other customer-linked tasks are entrusted to the third party business process outsourcing firm.

The offshore development outsourcing services providers recognize the need to synchronize their operations to those of the client-company. Thus, many business process outsourcing units in the Philippines, India and elsewhere, are operating at graveyard shifts to synchronize operations with the US time.

Government support

Governments of countries where offshore development outsourcing services providers are based are extending full support to the growing business process outsourcing industry. The support system come in the form of tax breaks, reinforced security, subsidies and many others. The governments recognize that continuing operations of business process outsourcing firms would translate to jobs and added revenues to the country and to the jobless citizens.

There is really no stopping this ever-growing industry. Every party involved is really benefiting. From the client-company, which generates operations savings, to the offshore development outsourcing services provider, which generates revenue, there is no doubt that potentials for profit are at stake.

Sarfaraz Khan is the best author in the industry also provides services to digitalxstream that is perfect source for complete ecommerce business solutions including e-commerce design solutions. Expert in provide offshore development outsourcing services, ecommerce design and VOD solutions

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