What Is Outsourcing and Why You Should Care

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outsourcing to the Philippines

Outsourcing has been a prominent business practice among businesses worldwide. Business owners that are looking for practical methods to enhance the efficiency of their processes find relief in outsourcing. While this practice has been making a buzz for many years, there are still those who need further information about the concept. In this blog, we will elaborate more on this widely popular business activity and the primary benefits it brings to the table.

Outsourcing Definition

Outsourcing refers to the business practice of contracting an external organization to handle specific tasks. The external companies that deal with these tasks are commonly known as Business Process Outsourcing (BPO) providers. The tasks that BPO firms handle are non-core or functions that are essential but not the most critical part of business operations. For example, a restaurant’s core function is cooking, while its non-core functions can be digital marketing, customer service, and payroll. To further, below are some of the most common non-core tasks that organizations outsource to BPO firms:

Back office

Contact center

Outsourcing vs. Offshoring

Outsourcing and offshoring are often regarded as similar concepts when they are not. While outsourcing means getting work done outside the company, offshoring means getting work done outside the country. Though the two are similar in terms of getting internal work done externally, the specificity in the location where the work will be accomplished differentiates the two.

Advantages of Outsourcing

Companies are able to enjoy the following benefits through outsourcing:

  • A decrease in operational expenses
  • Focus on tasks that can help yield more earnings
  • Access to quality talents that are experts in handling non-core tasks
  • Enhance the efficiency of business processes
  • Enjoy a boost in sales given a BPO company’s matured process for inbound and outbound contact center services

Outsourcing to the Philippines

The Philippines has been a prime outsourcing destination for many years. It ranked third in the 2017 Tholons Services Globalization Index and seventh in the 2017 A.T. Kearney Global Services Location Index. The country is also the number one outsourcing destination for voice-related BPO services. The competency of the Filipino workforce is the ultimate reason why the Philippines has become a favorite outsourcing location of businesses.

If you hope to learn more about this opportunity, don’t hesitate to contact us.

Email: paulos@andersonbpoinc.com

Philippines: +63-2-216-6379

Australia: +61-3-8375-8972

UK: +44-333-311-0547

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