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Outsourcing? The Philippines is the Place to Be PDF Print E-mail

Establishing a business from scratch is not an easy task. Aside from concerns over finances and other resources, the entrepreneur also has to consider other aspects such as keeping focus on sales and marketing to help boost the product or brand in the market, ensuring quality products and services to get a good market share, and performing operations and securing requirements based on a tight budget. One can only imagine: how can an entrepreneur juggle all these?

One plausible answer to that question is outsourcing. Outsourcing is briefly defined as the transfer of knowledge or part of the operations to another country or region where labor and resources are cheaper. One good and commendable country to outsource in is the Philippines. To date, numerous American companies ranging from small- to large-scale are outsourcing in the Philippines. This is because the Philippines offers a wide array of advantages including:

  • Strategic Location - The Philippines has a strategic location in Asia, allowing U.S. companies to save money from shipping costs. Also, having an offshore office in the Asian region may allow the business to cut down on their shipping time; thus, delivering products and services faster. This is true not only in terms of the delivery of end products and services but also in shipping raw materials and other resources needed for production. In addition, some businesses may even find new markets to explore in the Asian region.
  • Cost-Efficiency - All types of businesses are usually working on a limited or tight budget. As such, the company should consider outsourcing a part of their operations in the Philippines where labor, raw materials, and other resources are cheaper. With the Philippine peso having an exchange rate ranging from PHP 40.00 to PHP 48.00 to USD 1.00, companies especially those from the U. S. will definitely be able to save a lot in terms of operational costs without sacrificing work quality.
  • Commendable Knowledge and Skills Levels - The Philippines has a relatively high literacy level as well as proficient command of the English language as compared to other developing countries. They require minimal training and can easily adapt to any accent or culture. As such, American businesses do not have to worry about communication skills. In addition, majority of the Filipino people are imbibed with good values and traits that allow them to interface more efficiently with local and foreign customers. This is customer service excellence which also benefits the customers of the business.
  • Focus?- Since the Filipinos are able to work efficiently and have the right skills, then they can work with minimal supervision from the company or business commissioning their services. This benefits the business because it allows the entrepreneur to focus more on building up the business and on the right sales and marketing techniques to make the business more popular in the market.

With all these benefits, what more can American businesses ask for? Surely, the Philippines is indeed the "place to be" when it comes to outsourcing.

 
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