Choosing The Right Outsourcing Partner In The Philippines
The BPO industry in the Philippines is like a bustling, vibrant marketplace.
Offering various goods, each vendor claims to have the finest wares, the best deals, and the friendliest service.
True enough, this tropical gem isn't just famous for its stunning beaches. It's also a top outsourcing destination.
Businesses of all sizes outsource to the Philippines. But, finding the ideal outsourcing provider can be challenging. There are steps you need to take to do it right.
After years of finding ideal candidates and building offshore teams to fulfill business needs, we know. We’re staffing experts who have helped 100+ clients hire their talents, from creating accurate job descriptions to onboarding and managing their payroll.
So to get you started, here’s the first thing you need to understand…
How To Understand Your Outsourcing Needs?
As a business owner, you probably already know what outsourcing is. Now, all you have to do is know what to outsource and who to outsource it to.
Have you ever tried solving a jigsaw puzzle without knowing what the final picture looks like? Outsourcing without understanding your needs is just like that – a puzzle.
So, before you even go on an outsourcing journey, it's important to know your specific needs and requirements first.
Check your current business processes
83% of small businesses will maintain or increase their spending on outsourced business services this year. This shows just how beneficial outsourcing can be.
Know what you can outsource. Take a closer look at your current business processes.
Ask yourself:
- What tasks and operations are critical to your core business?
- Which processes can be streamlined or handed off to a third party?
Examining your existing operations can identify pain points and inefficiencies that outsourcing can help with. Look for tasks that external experts can handle. Taking these off your hands can allow you to focus on more strategic activities.
Pro Tip: Create a flowchart or process map to visualize your operations – it can be surprisingly enlightening.
Define clear objectives and goals
Outsourcing should align with your business objectives. What are you hoping to achieve? Set clear and measurable goals to track the success of your outsourcing efforts.
Common objectives are:
- Cost reduction: Outsourcing helps lower operational costs.
- Quality improvement: External experts often bring specialized skills and knowledge.
- Scalability: Outsourcing can provide flexibility to handle fluctuations in workload.
- Time-to-market: Faster project completion through outsourcing.
- Focus on core competencies: Letting your team concentrate on what they do best.
Defining these objectives will serve as a roadmap for your outsourcing strategy. It will also help you measure the success of your efforts.
Pro Tip: SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) are your best friends here.
Determine resource constraints
Evaluate your in-house resources, both human and financial. Identifying these constraints will help you pinpoint what's feasible to outsource.
Consider:
- Budget: How much can you allocate to outsourcing?
- Internal expertise: Do you have in-house knowledge to manage and oversee outsourced tasks?
- Infrastructure: Does your current technology support the integration of outsourced processes?
By assessing these constraints, you can decide what tasks to outsource and whether you need a short-term or long-term outsourcing partner.
Pro Tip: Consider not just the cost of outsourcing but also the opportunity cost of not doing so.
Assess risks
Outsourcing involves some risk, but understanding these risks is crucial to mitigate them effectively. Consider the potential downsides and develop a risk management plan to address these issues.
Common risks include:
- Data security: The risk of data breaches and leaks when sharing sensitive information with external providers.
- Quality control: Ensuring that outsourced tasks meet your quality standards.
- Communication: Potential language barriers and time zone differences.
- Cultural differences: Varying work cultures and ethics among outsourcing partners.
Identify these risks and develop strategies to mitigate them. For instance, choose outsourcing partners with solid security measures and communication protocols.
Pro Tip: Don't just focus on the negatives; assess the potential rewards, too. Sometimes, the benefits far outweigh the risks.
Evaluate scalability and growth
Think about your long-term plans. Consider these questions:
- Is your business likely to expand in the near future?
- Can your chosen outsourcing partner scale with you?
- Are they adaptable enough to meet your evolving needs as your business grows?
A well-planned outsourcing strategy should be flexible enough to support your company's growth without major disruptions.
Pro Tip: A good outsourcing partner should be a long-term asset, not just a temporary fix.
Understanding your outsourcing needs is a crucial step in optimizing your operations. When done right, it can be a powerful tool for your business growth.
How Do You Research Potential Outsourcing Partners?
Have your eye on an outsourcing company? Don’t settle for the first one you see right off the bat. Follow these helpful tips before anything else:
Tip 1: Gather information about prospective partners
Think of this step as your "Google it" moment. Start by digging up all you can about the prospective outsourcing partners.
First stop: their website. What services do they offer? Do they have a blog or resource section? It's like checking out the menu and reading reviews before entering a restaurant.
Next, how active are they on social media? Do they share industry insights or just cat memes? Active and informative profiles are usually a good sign.
On top of that, do they have the latest technologies and tools relevant to your business processes? Up-to-date infrastructure and technology can greatly enhance your operations.
For instance, if you want to outsource your customer support, find a partner who can use systems like customer relationship management (CRM) and handle communication across different channels.
Remember, information is power. You can use all you have gathered, transform it into action, and make the best business decision for your company.
Tip 2: Check client references and testimonials
It’s as simple as asking a friend for restaurant recommendations.
Don't be shy about asking for references. A reputable outsourcing partner should be happy to connect you with satisfied clients who can share their experiences. And while testimonials can be cherry-picked, they still provide insights into what their clients appreciate about them.
You can also look for reviews on platforms like Google, Yelp, or industry-specific websites. If everyone's raving about their customer support, that's definitely a green flag.
Tip 3: Evaluate their case studies and success stories
Just like reading a restaurant's "Top Dishes" section, case studies and success stories offer a taste of what they can bring to the table.
Case studies provide a detailed look at how an outsourcing company helped their client achieve specific goals. Look for one that matches your industry or the services you need. Success stories, on the other hand, can be more narrative and often reveal the journey a client took with their outsourcing partner.
Another pro tip: consider remote staffing
Remote staffing is another approach that's been making waves in recent years. You might be thinking, "Wait, isn't that just another term for outsourcing?" Well, not quite.
Outsourcing vs. remote staffing: what’s the difference?
Outsourcing has long been a go-to strategy for companies looking to delegate specific tasks or functions to external service providers. It's like ordering pizza—you get it without worrying about the ingredients or the cooking process.
On the other hand, remote staffing takes a slightly different approach. When you hire a remote staff, you bring dedicated team members who work exclusively for your company. In short, they’re just like your in-house employees but without worrying about adding to your overhead costs.
With remote staffing firms like MultiplyMii, your company can save up to $11,000 per employee or even more.
Want to know how much you stand to save per remote role? Download our FREE salary guide.
Most Outsourced Services in the Philippines
Curious about the Philippines' forte when it comes to outsourcing? Take a closer look at the services that make the country a sought-after outsourcing destination for businesses worldwide.
Customer Service
From answering phones to managing email inquiries and even handling live chats and social media interactions, Filipino customer support agents provide top-notch customer service.
Many businesses have continued to outsource their customer service to the Philippines since its boom 20 years ago, and for good reason. Filipino customer support teams are known for their professionalism and ability to handle complex customer issues. Moreover, you can save up to 50% on operational costs by outsourcing to Filipinos.
Finance and accounting
While numbers can be a headache, it’s not for the financial experts in the Philippines. Many businesses outsource their accounting and payroll processing tasks to Filipino professionals who make sure the numbers add up correctly.
But did you know there’s a shortage of accounting professionals? This makes the search for qualified experts in this field even stiffer.
The Philippines has established a strong reputation for finance and accounting outsourcing. It has an impressive community of 200,000 registered Certified Public Accountants (CPAs).
Data entry and analysis
Filipino data entry professionals are known for their attention to detail and efficiency, making the Philippines a prime destination for data entry outsourcing.
Their role is indispensable in today's fast-paced business landscape, where data reigns supreme. Companies that outsource these tasks in the country ensure their valuable information is organized and understood precisely.
Information technology (IT) services
IT services are also popular choices for outsourcing in the Philippines. The country ranks 1st in voice-related services and holds a 13% share of the global market.
The Philippines has a large pool of highly skilled IT professionals. All of which are experts in various programming languages and frameworks. They have experience developing innovative software solutions, creating websites, and managing databases.
E-commerce and order fulfillment support
In the fast-paced world of e-commerce, swift and efficient order processing is the name of the game. This is where the Philippines shines as a valuable partner to businesses.
With a robust e-commerce ecosystem, the Philippines offers various services, from managing online stores to processing customer orders.
The result? Products are swiftly dispatched and reach customers' doorsteps in a timely manner. This efficiency can significantly boost your reputation and customer loyalty in the highly competitive e-commerce landscape.
Creatives, sales, and marketing
Creativity knows no bounds in the Philippines, making it a creative hotspot for businesses worldwide. Whether it's graphic design that pops or engaging content creation, Filipino talent is second to none.
Companies outsource these tasks to tap into this vast talent pool, producing eye-catching visuals and compelling marketing materials. This creative prowess can be a game-changer if you want to make a lasting impression in your respective markets. You can captivate audiences and drive sales like never before.
Healthcare support
Even the healthcare sector reaps the benefits of outsourcing to the Philippines. This includes essential functions such as medical transcription, accurate billing, and even telemedicine support.
Filipino healthcare professionals bring precision, attention to detail, and compliance with stringent regulations to these tasks. As a result, healthcare providers can streamline their operations, reduce errors, and provide better patient care, ultimately leading to improved healthcare outcomes.
Human resources (HR) assistance
Navigating the intricate maze of HR functions can be daunting for many businesses. This is where the Philippines comes to the rescue.
Outsourcing HR tasks to the Philippines gives companies access to a dedicated team of experts who handle recruitment, onboarding, payroll management, and more. It's like having a trusted HR partner on the other side of the world, making processes smooth and efficient.
The Philippines' outstanding talent pool and proficiency in English make it an ideal destination for outsourcing. The Filipino workforce is known for its strong work ethic and dedication to delivering high-quality results.
10 Global Companies That Outsource in the Philippines
Many global enterprises have discovered that outsourcing in the Philippines is like striking gold in business. It's not a one-time deal; it's a strategic partnership that keeps them coming back for more.
Google, the search engine giant, relies on the Philippines for various non-core functions. The company outsources roles, from IT services providers to analytical consultants. The Philippines plays a vital role in maintaining Google's online ecosystem.
Facebook outsources content review and moderation to the Philippines. The country's workforce helps ensure the platform remains a safe and secure space for its users.
UnitedHealth Group
UnitedHealth Group, one of the largest healthcare companies globally, has a significant presence in the Philippines. They outsource various back-office processes like claims processing and customer service.
Wells Fargo
Wells Fargo, a leading financial services company, has established operations in the Philippines. They utilize Filipino talent for roles in customer service, data analysis, and more.
Nike
The iconic sportswear brand Nike also relies on the Philippines for certain business processes. Filipino professionals keep their operations running smoothly, from customer support to supply chain management.
Hewlett-Packard
Hewlett-Packard, the technology giant, has long recognized the Philippines as a valuable outsourcing destination. They outsource IT services, customer support, and even product development to the country.
IBM
IBM has a strong presence in the Philippines, providing various IT-related services, including application development, infrastructure management, and business process outsourcing.
American Express
American Express outsources customer service and financial operations to the Philippines. The country's English-speaking workforce ensures that American Express cardholders receive top-notch support.
The Coca-Cola Company
Even a global beverage giant like The Coca-Cola Company has tapped into the Philippines for business processes. They outsource finance and accounting functions, among others, to the country.
LinkedIn, the professional networking platform, utilizes the Philippines for various services, including customer support and data entry. Filipino talent helps maintain the platform's quality and user experience.
Aiming to streamline operations, enhance customer support, and remain competitive on a global scale? These multinational companies show the Philippines' role as a prominent outsourcing destination. The country's skilled workforce, language proficiency, and cost-effective solutions make it an attractive choice for businesses.
Expand Your Business With Remote Filipino Professionals
So, there you have it—the Philippines, a land of endless opportunities for companies seeking growth and success.
The benefits are plenty, from skilled talent to cost-efficiency.
And when it comes to connecting with remote Filipino professionals, one name stands out: MultiplyMii.
As a leading remote staffing firm, we have a stellar track record of helping our clients find the talent to propel their growth.
Ready to expand your business in the Philippines? MultiplyMii is your trusted partner in building the dream team that will take your business to new heights.
Get in touch today and watch your business flourish in the vibrant landscapes of the Philippines.
