Outsourcing and Offshoring to the Philippines

 

Offshoring experts:  DiversifyISS are experts in assisting businesses establish their own offshore teams (also commonly referred to as outsourced staff, offshore outsourced staff, remote staff or BPO) in the Philippines. Learn More >

Benefits to business: The benefits of offshoring are many and include promoting growth without incurring massive overheads, operating 24/7/365 as well as achieving  increased value for your staffing dollar spend. Learn More >

Industry specialisation: DiversifyISS specialises in assisting businesses in the professional services and retail sectors with offshore staffing implementation, including strategy and planning.

Why the Philippines?: With 94% English literacy, 400,000 graduates each year and an average age of just 22 the reasons for choosing the Philippines as your offshoring destination are many. Learn More >

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8 reasons why you need to consider offshoring for your business

Monday, Apr 20.

Offshoring and outsourcing have been around for years in the USA and Europe and they have now well and truly arrived in Australia. Offshoring allows businesses to achieve the dual outcomes of lower costs and increased service delivery.  Technology has made offshoring a more viable option than ever and if you aren't considering it, your competitors will be.

The option to do this through an Australian based service provider is now here.

Apr20

8 reasons why you need to consider offshoring for your business

Monday, Apr 20.

Offshoring and outsourcing have been around for years in the USA and Europe and they have now well and truly arrived in Australia. Offshoring allows businesses to achieve the dual outcomes of lower costs and increased service delivery.  Technology has made offshoring a more viable option than ever and if you aren't considering it, your competitors will be.

The option to do this through an Australian based service provider is now here.

You're saving money

Obviously one of the most attractive benefits is the cost savings you can achieve when implementing an offshore workforce.

You’re increasing operational capacity without the traditional overheads.

When your workforce grows, so do your fixed costs such as rent, IT, equipment and utilities to name a few. Add in the time spent on training, induction and managing the human resources requirements and it becomes a costly exercise. An offshore services provider looks after everything so all you have to worry about is keeping your offshore employee busy.

Free up your key staff to work on more important tasks.

It happens every day, key staff completing low priority admin tasks, which while important, are not adding any value to the business. Utilising an offshore workforce can allow lower priority work to be delegated efficiently allowing local staff to focus on higher value work.

Your competition is doing, it or is considering it.

Rapid technological development, lower barriers to entry and an increase in service providers has made it easier than ever to implement an offshore workforce. If you aren’t thinking about it or at least considering it as part of your forward strategy you will find it increasingly difficult to compete.

You’re actually growing YOUR workforce in a cost effective manner.

You’ve probably heard a few negative things about outsourcing or you may have actually had a bad experience with a rogue provider. Offshoring is a completely different concept to outsourcing in that you have complete control over the employee. You can invest time in developing, training and mentoring them just like you would locally. They can actually become a long term asset, depending on how effective implementation is.

You’re probably doing it now (well kind of).

A growing trend, recently, has been the increased usage of remote workforces, hot desks and working from home. If you’re doing any of the above you’re basically already operating the same way you would with offshore staff.

You can manage workflow effectively.

Your offshore employee can work hours that are suitable for you, including a night shift. If you find your local staff are finding it difficult to complete certain work tasks before close of business you can utilise your offshore workforce to complete it overnight, reducing stress and allowing you to get through more work, quicker!

It's innovative.

Although innovation can be considered as an overused buzzword, businesses that identify innovative ways to use technology, increase capability and reduce operational costs find it easier to achieve growth and succeed, particularly in saturated industries. An offshore workforce solution is an innovative way to achieve a number of positive business objectives.

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Do offshoring and outsourcing move jobs offshore?

Thursday, Apr 02.

Well of course they do … don’t they?  Well not necessarily, let me explain…

Of course choosing to hire someone offshore rather than locally does mean that role is now offshore but when considering whether the overall effect is a reduction in local employment some additional questions also need to be asked:

Apr02

Do offshoring and outsourcing move jobs offshore?

Thursday, Apr 02.

Well of course they do … don’t they?  Well not necessarily, let me explain…

Of course choosing to hire someone offshore rather than locally does mean that role is now offshore but when considering whether the overall effect is a reduction in local employment some additional questions also need to be asked:

  • Was it financially feasible for the role to be performed locally? Often roles created offshore are new roles that a company could not afford to establish locally.
  • Did the new offshore roles create any new onshore roles? Often new management and other roles are created locally as a consequence of the offshore staff.
  • What was the effect of the offshoring on the company’s overall market competitiveness and profitability? Often companies become more competitive and profitable and a result of the savings and additional resourcing that can be achieved through offshoring – this can result in more local employment as the company grows and reinvests in its business.
  • What was the flow on effect of the offshoring? If it leads to a more profitable businesses paying more local tax this usually has a multiplier effect with that tax money then recirculating in the local economy potentially providing further employment.

In fact a recent study undertaken in the USA found that for every one job that had been offshored within their study group more than one new on shore job had been created as a direct or indirect consequence of the offshoring.

Whilst it is easy to take a simplistic approach and say that offshoring is bad for local employment the truth is that is not always the case.  Whether we like it or not globalisation of our workforces is now a fact of life and whether we chose to embrace and potentially prosper from this or resist may ultimately have a significant impact on the future success of our businesses.

 

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Professional service firms - outsourcing and offshoring – opportunities for innovative new business models

Tuesday, Mar 03.

Professional services firms in Australia have only recently identified the potential benefits that can be achieved by process outsourcing. Firms that have embarked upon down the process outsourcing journey have encountered varied levels of success. The most common challenges that present themselves are related to quality or consistency of the work and services provided. This is often attributed to a lack of transparency around the staff delivering the work as well as the inability to directly train or assist with the development of those staff members.

Mar03

Professional service firms - outsourcing and offshoring – opportunities for innovative new business models

Tuesday, Mar 03.

Professional services firms in Australia have only recently identified the potential benefits that can be achieved by process outsourcing. Firms that have embarked upon down the process outsourcing journey have encountered varied levels of success. The most common challenges that present themselves are related to quality or consistency of the work and services provided. This is often attributed to a lack of transparency around the staff delivering the work as well as the inability to directly train or assist with the development of those staff members. These factors combined can sometimes produce disappointing outcomes.

Recently another innovative concept for the implementation of low cost offshore staff has become more common: “offshoring”.

So what is offshoring?

Offshoring is where an organisation utilises an intermediary who is based offshore and helps the organisation to develop and implement an offshore workforce. The organisation has direct managerial control over their offshore employees (just like a regular local staff member) and they are involved in the selection and recruitment process. Click here to find out more.

Large American firms have undertaken the offshoring journey and have actually implemented their own back-office facilities in reduced cost locations, including the Philippines. In fact one large American firm has an offshore workforce of almost 1,000 employees in Manila who provide support services to their global offices.

This offshore workforce does not comprise of, for example, lawyers (not at the moment at least, but it is a future possibility) but rather the support services that are a critical component to any successful law firm. The functions offshored include business support functions such as finance, marketing, information technology, recruitment and human resources (to name a few).

Obviously the cost benefits are substantial as the average wage costs in the Philippines are less than 20% of those in Australia

An offshore/outsourced workforce solution is not just for large firms and you do not need to establish your own facility overseas to implement. There are expert service providers who will look after the entire process for you.

An experience service provider will work collaboratively with you to tailor a strategy that meets the needs of your professional service firm and then work to implement this strategy. Implementation includes developing a timetable for the functions to be offshored through to the recruitment of your offshore staff. Your experienced service provider will also host your offshore team in a modern office and will provide all the support services required, including IT, HR, Operations and Training.

The rapid advancement and development of information technology, internet speed and cloud based solutions have enabled remote staff to work in the same manner as locally based employees who opt to work from home. Locally based remote working solutions are no different to utilising an offshore resource in Manila. This shift to an almost borderless office has provided innovative professional services firms with an opportunity to re-evaluate how their business models work. Implementing an effective offshore solution will significantly reduce fixed platform costs.

It is time for professional services firms to revaluate their existing business models and contemplate how they will remain relevant as competition in the professional services market continues to grow. Considering an offshore solution must be on the agenda as it is increasingly likely that firms of the future will be completely different to those today.

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