Posted by carisa on February 4, 2009
The current global economic trend incidentally pushes outsourcing in the Philippines into greater advantage. Why? Consider this primary reason. As the current global monetary medium rises, so too are the cost of services, operational expenses and other necessary cost brought about for outsourcing execution, consequently rise too. And for cost conscious businesses in the recession struck first world countries, this means a lot. For the Philippine Outsourcing Industry, this means life.
While we are aware of the domino-effect of the first world financial crisis to the third-world, such as the Philippines, as US media reports about massive layoff of most US workforce, will soon predictably be heard of most local firms, one potential industry to soar in the middle of the crisis would definitely be outsourcing. Notwithstanding the Philippine’s world-class Information Technology and Business Process competence, just among the viable reasons for outsourcing in the Philippine shores.
It would then be safe to say that the industry will head on to its positive path of emerging to be on top of Philippine’s economic indicator along with the consumer goods industry. So, gearing up for outsourcing business would be a better investment and diversifying to outsourcing industry could be a better option to existing entrepreneurs today.
Posted by anthony on February 2, 2009
Outsourcing is becoming more and more popular in today’s business environment. Most companies tend to outsource some of their work functions. It is a process in which the company or individual business man contracts another company to avail particular services. There are four basic types of outsourcing, wherein the categorization is based on the nature of work being outsourced.
The first type is Business Process Outsourcing (BPO) in which call center outsourcing, human resources outsourcing (HRO), finance and accounting outsourcing and claims processing outsourcing belong. The second is Information Technology Outsourcing (ITO). It includes IT services, technical support, software testing, and website management outsourcing. The third type is Software R&D or also known as software development outsourcing. Finally, Knowledge Process Outsourcing (KPO), is the type of outsourcing that includes reading X-Rays, performing investment research on stocks and bonds, handling the accounting functions for a business or executing engineering design project.
By looking at the benefits of Outsourcing, we can deduce that it is indeed helpful and a practical choice because of its cost-effectivity. You can gain access to knowledge pool that is not available inside your own company. You can also attain flexible capacity management in which you are enabled to flexibly manage the production capacity and staff as well. The Time Zone coverage that are set up 24/7/365 operation makes your business operation more efficient.
Posted by rommel olido on October 14, 2008
The growing demands for Offshore Outsourcing services have strengthened the potential of the Philippines Business Process Outsourcing (BPO) to become a global leader in this industry. Philippines have already stepped out of India’s shadows as strategic destination for outsourcing. This is supported by reports that India is losing competitive edge in this industry because of the emergence of various BPO service providers across Asia Pacific Region.
Filipinos show great passion and skills in the field of Information Technology. The high quality and low cost of work has attracted many foreign companies to engage in outsourcing with our country. Moreover, it has effectively provided these entities with competitive strategies undeniably vital in any business.
The technology-enabled services like web development, creative design, virtual assistant and search-engine optimization are commonly outsourced in this industry. Outsourcing is the process of contracting business functions to a BPO service provider. The services also include business planning and analysis, as well as the installation, management, and servicing of the network and workstations.
Philippines is now finally, regarded as the top destination of business process outsourcing. The support of Philippine government in this industry and the large pool of IT work force have made this industry visible worldwide. Our country consistently improves its economy due to revenues gained from this industry. Expert said that business process outsourcing in our country would not be affected by global financial crisis; instead, the demands for outsourced services will continue to grow in the coming years.
Posted by Jessica Madrazo on September 24, 2007
Some businesses are rooted on tradition and custom, but revolutionizes on innovation and modification. Routines are highly dependable, and it is reasonable to think twice before a new move, based on craze, is made in a company.
There is an emerging trend in the arena of business staffing. With it comes a financial system which is found, not only to be more cost-efficient, but also more proficient. Hiring a Virtual Assistant offers a company more than just the benefit of imitating the big corporations, and these are the reasons why these giants opt for a VA.
1. Furnishing, equipment, and environment—A Virtual Assistant works in their own location, and there is no need to provide any office space, or rearrange the office to create a more conducive environment.
2. Training and background—Specific tasks are given to a Virtual Assistant. It is expected they are proficient in the latest tools and technology in the field they are in, and thus, do not require any training. Cut, not only on the cost, but also on the time.
3. Time, work schedules and absences—Bring an end to the need of creating an ideal work schedule to distribute the time. A virtual assistant merely needs the task description, and a deadline. A project is completed on time, and the client only pays for the actual working time; water cooler chats, bathroom visits, and coffee breaks not included. Work stoppage will never be a problem with a Virtual Assistant resource pool. An available assistant will always be ready to take over in any situation.
4. Confidentiality—Upon signing in a Virtual Assistant, a confidentiality agreement is signed. Thus, there is no need to worry about vital company information and data leaked in the elevator or over coffee.
5. Cost, cost, cost—When hiring a VA, aside from lower costs compared to hiring an office staff, you save on investment spent on apparatus. Virtual Assistant employment does not require fringe benefits as health insurance, vacation pays, and wage deductions. Overhead costs are covered by the VA’s themselves.
Posted by Jessica Madrazo on September 12, 2007
There is a constant resistance for companies to outsource to Philippines. Most are convinced that outsourcing can never equate to the standards they are able to set as compared to hiring on board employees. With no experience with outsourcing, when convinced to do so, it is typically believed that mainstream is the safest way to go; contract with an established outsourcing country which already ranks on the top of the charts.
When outsourcing to Asian countries, there are a multitude of disapproving aspects that cause doubts. The Philippines for example, is one of the countries slowly rising in the field of outsourcing. What are the dangers that attach themselves with the decision to outsource to the Philippines?
1. Abdication of control— Out of sight, out of mind. The greatest threat to outsourcing is the idea that you relinquish all control over your project and turn it over to the outsourcing firm, who has only a very vague idea of what you are and what you offer. In this case, the cliché is absolutely untrue. All pieces of information is gathered, provided all details are given to the outsourcing company, this problem would be non-existent. In the case of the need for the actual people to be visible, many companies now offer a way of viewing your team process your projects through video streaming. If this matter is important for you, choose an outsourcing firm offering this addition.
- Pricing—Typically, the reason for choosing to outsource instead of hiring is cost efficiency. Outsourcing is incomparably cheaper than hiring actual employees, and even onshore outsourcing. Ergo, you expect the lowest rates possible. Some companies do not necessarily follow the bottom trend and can only offer premium prices. As long as their quality is at par, or even better, with their set price, you will always be on the winning side.
- Deadline—With the circumstance evident in outsourcing, reminding your outsourced workforce is no the same with updating your tangible personnel. In some cases, deadlines are often extended, disturbing your time table. Contrary to this belief, outsourcing firms in the Philippines always perceive deadline submission as yesterday. For these firms, where visibility is absent, product is all that matters.
- Specifics—Instead of giving the “how to’s” that come along with the package, they bombard you with useless details you have no use of. When request of details are given on a project, always clarify what things you expect to find out from your outsourcing firm. This gives them an idea, not only of your expected output, but also the information you are anticipating from them before the completion of the project.
- Disappointment—Most clients always start on the pessimistic side, it is always expected that along the way, some disappointments are doomed to happen. But the truth is, in the Philippines, offshore outsourcing is considered as a very dangerous business to be in. With nothing but your product to represent you, there is a constant awareness that a single disappointment can act like a bomb.