Outsourcing To The Philippines: Your Guide To Doing It Right
Many believe that working with the best ensures success. But in the complex world of outsourcing, where companies hand over vital tasks to external partners, how can you be certain you're making the right choices? Getting it wrong can lead to a waste of valuable resources.
As experts in staffing, powered by remote Filipino talent, we're here to guide you through the nuances of outsourcing in the Philippines. We'll break down the key considerations, the costs, and the pitfalls to avoid. Above all, we'll steer you towards outsourcing success.
But first, let's address the question...
How To Start Outsourcing In The Philippines?
Take note of these three key steps to help you start outsourcing in the Philippines.
Understand The Philippines’ Outsourcing Landscape
The business process outsourcing (BPO) industry in the Philippines is consistently growing year after year. Partly because of its large pool of English-speaking college-educated workforce, but mainly because of its competitive labor costs. Outsourcing services contribute nearly $30 billion to its economy, employ 1.3 million Filipinos, and hold an estimated 10-15% of the global BPO market.
The Philippines is a favorable business environment for outsourcing. Government initiatives, such as the Philippine Economic Zone Authority (PEZA), support the industry, offering benefits to outsourcing companies.
Prepare Your Business To Outsource
To prepare your business for outsourcing to the Philippines, you have to:
- Identify which tasks or processes you want your outsourced team to handle
- Establish clear goals and expectations
- Determine your budget
You also need to ensure that your business processes and systems are documented and well-organized to facilitate communication and collaboration with your outsourcing partner.
Choose The Right Outsourcing Partner
Choosing the right outsourcing partner is critical to your success. Look for a partner that has:
- Experience in your industry
- A proven track record of delivering quality services
- A strong reputation in the outsourcing industry.
You should also look at other factors such as communication skills, cultural fit, and geographic location.
One partner you should consider is MultiplyMii, a remote staffing company with rich experience in helping businesses find their successful hires at competitive rates.
How Much Does It Cost To Outsource In The Philippines?
Outsourcing costs in the Philippines vary depending on several factors:
Type of Work
The type of work you need to outsource will significantly impact the cost.
For example, suppose your business needs to outsource data entry or administrative tasks. In that case, you can expect to pay less. But if you need to outsource specialized tasks like software development or graphic design? The more specialized the work, the higher the cost.
Level Of Skill Required
The level of skill required for the work you need to outsource will also impact the cost. Take an accountant as an example. Someone with five years of accounting experience has a higher salary expectation than a fresh graduate.
How complex will the project be? Will you need someone with expertise in a specific platform or experience in a certain industry? Determine the skills you need before crafting a job description for the role. This way, you would know how much you’ll spend on your employee’s salary.
Salary Rates
Salary rates in the Philippines are generally lower than in many other countries, making outsourcing to the Philippines an attractive option. But keep in mind that it will vary depending on the level of skill required and the type of work.
Check out our comparison:
Curious about other roles? Download MultiplyMii’s FREE salary guide.
Project Size And Duration
The size and duration of your project will also affect your outsourcing costs.
You have to pay more when you outsource a large project that will take several months to complete and less if it’s a small project needing a few weeks or so.
Additionally, many outsourcing companies in the Philippines offer discounts for long-term contracts, so if you plan to outsource on an ongoing basis, you may be able to negotiate a lower rate.
Considerations When Outsourcing In The Philippines
Now that you understand what factors affect outsourcing costs in the Philippines, the next is to determine whether it’s a good fit for you or not. Of course, you wouldn’t want to be in for a surprise after you’ve signed the contract.
Have A Non-Confrontational Culture
Filipinos value harmony and avoiding conflict. As a result, they tend to be non-confrontational and may be hesitant to speak up if they disagree with something. This can be both positive and negative in a business setting.
On the one hand, it can make for a pleasant work environment. On the other hand, it can make it challenging to get honest feedback or address issues that need to be resolved.
To overcome this, create a supportive work culture that encourages communication and feedback.
Puts Family First
Family is highly valued in Philippine culture, and it is not uncommon for employees to prioritize family obligations over work responsibilities. This can lead to unexpected absences or requests for time off.
To avoid disruptions to your business, establish clear expectations and policies around attendance and time off. Work arrangements, such as remote work or flexible schedules, can help accommodate family obligations while allowing employees to meet their work responsibilities.
Prefers Predictable Salaries
Filipinos tend to prefer predictable salaries over performance-based pay. This is partly due to the cultural emphasis on stability and security.
Offering competitive salaries and benefits packages that provide stability and security is important to attract and retain top talent. This includes health insurance, retirement benefits, and paid time off.
Wants Expanded Employee Benefits
Besides competitive salaries, offering expanded employee benefits can be a crucial differentiator in attracting and retaining top talent in the Philippines. This includes:
- Wellness programs
- Professional development opportunities
- Work-life balance initiatives
By investing in your employees' well-being and professional growth, you can create a more engaged and loyal workforce.
Build a successful and productive outsourcing relationship with your Philippine team by understanding and addressing these considerations.
Mistakes to Avoid When Working with Filipino Outsourcing Provider
When working with a Filipino outsourcing provider, avoid certain errors that could negatively impact your experience.
Not Reviewing Low Pricing Considerations
One common mistake businesses make when outsourcing to the Philippines is solely focusing on the low prices.
While it's true that outsourcing to the Philippines can be cost-effective, review all the pricing considerations before anything else. This includes the hourly rate and additional fees, such as setup, training, and termination fees.
By not reviewing all the pricing considerations, you may end up paying more than you anticipated.
Not Viewing Work Samples
Another mistake businesses make is not viewing work samples before hiring a Filipino outsourcing provider.
Work samples can give you a better idea of the provider's capabilities and the quality of work they produce. So, ask for work samples similar to the work you need to be done. This will give you a better idea of how well the provider can meet your specific needs.
Evaluating Providers Beyond Their Web Presence
While a provider's website can give you a good idea of their services and capabilities, it's important to assess them beyond their web presence. This includes:
- Checking their online reviews
- Asking for references
- Conducting a site visit
By evaluating a provider beyond their web presence, you can better understand their reputation and the quality of service they provide.
Not Using A Remote Staffing Company
Yes, the unemployment rate in the Philippines went up to 4.5% (2.3 million Filipinos), but that doesn’t mean it will be easy to find the skilled professional you need.
But, partnering with a remote staffing company like MultiplyMii can give you that edge and help you hire remote Filipino talent. We also provide ongoing support and management as well as a 60-day replacement guarantee!
By avoiding these common mistakes, you can have a more successful outsourcing experience in the Philippines.
Make Your Way To Success With Remote Filipino Talent
Don't miss out on the opportunity to tap into a talented pool of professionals who can help you achieve your goals!
With MultiplyMii, embrace the future of remote work and watch your business soar to newer heights.
Supercharge your team with amazing remote Filipino talent and save up to 70% on labor costs.
So, what are you waiting for? The perfect match for your outsourcing needs is just one call away.
