What Are the Advantages of Offshoring Philippines

What Are the Advantages of Offshoring Philippines

Picture of Daven Michaels

Daven Michaels

New York Times Bestselling Author, 30-year business veteran, and Executive Chairman of CurrentC Group.

The single factor that affects offshore outsourcing is the cost of labor deployment. This is often the standard used by majority of companies before making a decision in hiring a workforce on a bigger scale. Another is where to send them that will allow them get more profitable gain for their companies. In the past, the cost of labor is among the most vital and usually followed determining factors in every decision in the management level. The truth is that most of the offshore outsourcing boom that happened in the 90’s was all because of its cost effective to hiring qualified personnel. But as the demand rose significantly in 2000, the advantages of offshore subcontracting at present do not mainly focus on cost efficiency alone.

Currently, among the fastest growing offshore outsourcing is in the Philippines. Offshoring Philippines has become a norm for multinational companies who are looking for affordable yet quality labor costs. It is an undeniable fact that labor costs are the important factors why offshore outsourcing in the Philippines has become popular in the business sector. Offshore outsourcing allows companies to execute important jobs and complete core tasks without having to pay expensive salary onshore. Paying for the training of the local workforce is often considered an investment risk because there is no guarantee that the employee will perform as expected or will hold the job position after the extensive training is completed and new set skills are acquired. This is also considered as a waste of company resources on unnecessary and often redundant job responsibilities.

The core purpose of the business is often ignored because most of the workforce is busy on other more minor things such as answering customer calls and performing other related menial tasks. There is no logic in paying high priced salaries on jobs that can be easily carried out at half the cost it will take the company when they consider their opportunities with offshoring Philippines. In addition to this, companies can also be able to operate twenty four hours a day when they outsource some of their business processing requirements like customer service and technical support.

Being able to operate round the clock is an important edge particularly in the industrial sector which offers key services like providing twenty four hours customer assistance. When these tasks are outsourced in the Philippines, not only will the labor cost be drastically reduced but companies can also enhance their customer relations. Even in the manufacturing, offshoring Philippines can provide affordable yet quality workforce that can guarantee delivery of the project without additional costs.

Offshoring Philippines allow companies to get hold of highly qualified personnel minus the expensive salary. Philippines is one of the key outsourcing destinations that offer competitive salaries beneficial for companies who want to minimize their salary expenses without streamlining the number of employees. And with a growing range of BPO services to offer, the Philippines is expected to become a central hub for outsourcing jobs and or services without acquiring additional costs.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.OutsourcingOutsourcing.Com.

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