How Does Offshoring in the Philippines Work?: Full Process

Posted on:
March 29, 2023
min read
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How Does Offshoring in the Philippines Work?: Full Process
KDCI Outsourcing
September 6, 2023

Offshore staffing in the Philippines has long been a trend in the business world. In the US, alone, 66% of companies turn to offshore outsourcing solutions for their staffing needs..Now, for those who also want to try offshoring staff, there’s one thing that you need to understand first: How does offshore staffing works? This is what we’ll discuss in this article. We’ll also talk about why companies choose offshoring, and how you can be successful if you choose to go this route.

What Is Offshoring and How Does It Work?

Offshoring is the practice of relocating a company's business processes, functions, or services to another country. It involves transferring certain aspects of a business to a location outside the country where the company is headquartered.Usually, a company will choose a country with lower labor costs to achieve cost savings and other advantages. There should also be a large pool of skilled workers. These countries are often referred to as "offshore destinations" and may include countries in Asia, Eastern Europe, and Latin America.The process of offshoring involves the following steps:1. Identifying the processes or functions that can be moved to another country2. Identifying the location for the offshored work3. Creating a plan to manage the transitionOnce the offshoring plan is implemented, the company will typically work closely with the offshore team. This is to maintain quality standards and ensure that the work is completed on time and within budget.

BPO offshore staffing in the Philippines offers a thriving pool of talented professionals, improving business efficiency with cost-effective solutions

Is Offshoring in the Philippines a Good Strategy for Businesses?

Offshore staffing can be a good strategy for businesses, particularly those looking to reduce costs, access specialized expertise, or expand their global reach.By adopting offshore staffing as a business strategy in business functions, companies can tap into a larger pool of skilled workers, particularly in countries where labor costs are lower than in their home country. This can result in significant cost savings for labor-intensive tasks such as customer support or manufacturing.In addition to cost savings, offshore staffing can also provide access to specialized expertise that may be difficult to find locally. For example, many countries have developed expertise in areas such as IT or healthcare. Thus, offshoring to these countries can allow companies to tap into this expertise and gain a competitive advantage.Additionally, this offshore staffing approach can be a key strategy for companies looking to expand their global reach and tap into new markets. By establishing a presence in a foreign country, companies can gain a better understanding of local markets and cultures, and develop products and services that are tailored to the needs of those markets.However, it is important to note that offshore staffing also poses certain risks and challenges. Cultural and language barriers, data security concerns, and political risks are just a few of the potential drawbacks that companies must carefully consider before embarking on an offshoring strategy.Companies must weigh the potential benefits and drawbacks to know if offshoring will be a good strategy or not.

Why Do Companies Choose to Offshore?

A lot of companies choose to offshore their staffing needs overseas. Apart from being a trend in the industry, below are the reasons why they also opt for this offshore staffing strategy.

Cost Savings

Offshoring to countries with lower labor costs can significantly reduce a company's expenses. This is especially beneficial for companies that need a high volume of manpower for their business functions.

Access to Specialized Expertise

Offshore staffing can provide access to a larger pool of skilled workers with specialized expertise. Companies may choose to offshore if they find it hard to find local staff that is in line with their standards and requirements.

Time Zone Advantages

Offshoring to countries in different time zones can allow companies to operate 24/7. This will lead to steadier business hours and operations without stretching limited employees thin.

Increased Opportunities for Flexibility

Offshore staffing can provide companies with greater flexibility and agility to respond to changing market conditions. With offshore outsourcing solutions, companies will find it easier to scale their operations up or down, depending on their current state.

Strategic Expansion

Offshore staffing can be a key strategy for companies looking to expand their global reach and tap into new markets. By offshoring services to a developing country like the Philippines, these multinational companies will have the chance to obtain an international audience and learn about their culture and preferences without making additional investments.

What Is the Current State of Offshore Outsourcing in the Philippines?

Offshoring in the Philippines continues to be a thriving industry. The country stays as one of the top destinations for businesses looking to offshore their operations overseas.According to USource, the Philippines' outsourcing industry is expected to generate around $38.9 billion in revenue by the end of 2022, making it a significant contributor to the country's economy.However, the offshore outsourcing industry in the Philippines also faces challenges. Competition from other outsourcing destinations such as India and China, as well as the rise of automation and artificial intelligence, are just a few of the challenges that the industry must contend with.Nevertheless, the Philippines' offshoring industry remains a significant and growing part of the country's economy. The industry expects continuous growth in the global market in the years to come.

Why Should You Offshore Staffing to the Philippines?

Offshoring is one thing. Offshoring staffing to the Philippines is another, better choice for your business. Here are some reasons why.

Large Pool of Skilled Workers

The Philippines has a large pool of skilled workers, particularly in the fields of customer support, web development, and back office roles. This makes it easier for businesses to find and hire the talent they need.

Cost Savings

The cost of labor in the Philippines is generally lower compared to other countries with already-developed economies like the US and Europe. This can result in significant cost savings for businesses that choose to offshore staffing to the Philippines.Read more about how much money companies save by offshoring to the Philippines.

Exceptional English Proficiency

English is one of the official languages of the Philippines, and many Filipinos are fluent in English. This makes it easier for businesses to communicate with their offshore teams and ensures that there are no language barriers.

Offshore Staffing Services to the Philippines

Looking to streamline your business operations and reduce costs? Offshore your staffing services to the Philippines! With a large pool of skilled workers, cost-effective labor, exceptional English proficiency, and government support, the Philippines is the perfect destination for businesses looking to expand their global reach.With KDCI, you will get offshore staff from the Philippines that are experts in several industries, including customer support, graphic design, digital marketing, web development, and more.Click the button below to contact us.Contact Us

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