Philippines Perspective: The Philippines IT–BPO industry has a growth rate of 45% each year and is one of the World’s best destinations for Outsourcing… It is estimated that the Philippines will hold 10% of the Worlds BPO market by 2010

What is Outsourcing?

In simple Outsourcing is the contracting out of a company's non-core, non-revenue-producing activities to specialized firms that possess expertise in the outsourced business function and is generally better, faster and cheaper than an in-house department. Outsourcing has transformed into a tactical and strategic management tool that involves the restructuring of an organization around what it does best - its core competencies and allowing a company to focus on its primary business objectives.

Outsourcing has gradually evolved into global sourcing driven by technology, supported by a highly skilled, cost-effective workforce, defined by a range of services, economic imperatives and business models.

The key is making available the right skills at the right locations at the right cost.

Effective outsourcing governance and relationship management enable organizations to establish an operating model that ensures you and your provider remain aligned throughout the relationship.  This will enable you to reach your initial objectives and drive greater, and often improved, service quality, greater efficiencies, and enhanced technical capabilities that support ongoing improvement.

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Types of Outsourcing

Two common types of outsourcing are IT or Technology Services Outsourcing and Business Process Outsourcing

Technology Services Outsourcing

E-Commerce Infrastructure – Networks Software – Applications Telecom Website Development & Hosting Services

Business Process Outsourcing

Contact/Call  Center Finance & Accounting HR Logistics Procurement/Supply chain Management

 

 

 

 

 

 

Benefits of the 4C Framework for Outsourcing

The four C’s play a key role in outsourcing

1. Costs

2. Capabilities

3. Competitiveness

4. Change

Outsourcing Strategy

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Who should outsource?

The benefits of outsourcing can be innumerable.

1. Enterprises lacking sufficient in-house expertise to “go to the next level”

2. Enterprises looking to establish a global presence

3. Organizations looking to reduce in-house operating costs

4. Companies finding difficulty meeting growing customer demands

5. Enterprises looking to reduce investments on technological infrastructure and technical support services

You also need to consider the following:

1. Will outsourcing free up your business to focus on its strengths? This might benefit your business by allowing your staff to concentrate on their main tasks and on the future strategy.

2. Will it improve your efficiency or customer service? The outsourcing company you choose should be a specialist in the process or service you ask them to carry out for you. 

3. Will your business gain a competitive advantage? Outsourcing can bring flexibility to a business, turning fixed costs into variable costs and freeing up capital. It can also give your business the edge when adapting to changing market conditions.

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Why Outsource to the Philippines?

BPO in the Philippines is one of its fastest growing industries and ranked 3rd in the world’s top BPO destinations. It owns 10% of the $130 Billion global BPO revenues. The Philippines BPO Business Process Outsourcing industry is projected to grow by 45% on terms of revenues each year.

Key reasons to choose the Philippines as an outsourcing destination;

Low Operating Costs

• Low Labor and Operating cost; 30-40% lower than the US and Europe

• 15 to 30% savings on call center services

• 35 to 50% savings on software development

Strategic Business Location

• Located in the heart of Asia

Highly Skilled and Trainable Workforce

• Literacy Rate of 94% encompassed with excellent English speaking skills

• Hardworking Ethic

Cultural Compatibility

• Western Oriented

Economic Growth & Stability

• Governments focus to build an IT driven economy

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Top 10 Reasons to Outsource

1. Greater focus on core business competencies

2. Immediate low costs access to the best technology and tap the global talent pool

3. Gain access to industry experts with high intellectual property to help gain a competitive edge

4. Improve Productivity

5. Provide enterprises cost savings of from 15 to 35%

6. Lower overhead investment

7. Reduce operating costs

8. Share risks

9. Effectively maintain compliance

10. Access best practices in each process area to gain greater process efficiencies

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