Outsourcing to the Philippines is one of the most popular destinations for this cost saving activity due to its low cost of labor and English-speaking workforce. However, there are also a number of controversial benefits to outsourcing to the Philippines.
One of the most controversial benefits is the low cost of labor. While this may be beneficial for businesses, some believe it to be exploitative. What this fails to acknowledge is the cheap cost of living throughout Asia compared to other countries like the United States.
Notwithstanding the debate about whether outsourcing is the way to turn for businesses looking to maximize profits, many are turning to outsourcing as a solution to rising labor costs and the great resignation.
Despite the controversy, Winston Ong, CEO of BruntWork, illustrates why outsourcing benefits companies:
The clear-cut benefit of outsourcing is cost savings. Business owners can accomplish tasks at a lower cost and often with higher quality. Workers from countries like the Philippines can do the work required at a fraction of the cost. This is due to the wage disparity between Western and Asian countries. The services are of high quality, ensuring business owners that lower costs do not translate to inferior quality.
Companies choosing an outsourcing business that specialises in the process or service they want them to execute gain a more productive, efficient, and often higher-quality service that simplifies running the business.
Freeing up attention for core areas
Outsourcing business processes allows owners to focus on building their brand, invest in research and development, and improve their business overall. Outsourcing non-core functions help companies focus more on the areas that matter most to their business.
Many companies are turning to outsourcing to help them gain a competitive edge. Businesses can get more done in a day and get a jump on the competition by working with a team in a different time zone. This unique advantage gives companies the benefit of round-the-clock business operations.
Access to more talent
Companies that outsource labour have access to a larger pool of workers than companies that hire locally. Hiring from overseas helps businesses acquire the best personnel with the right skills for their specific industry.
Which tasks are riskiest to outsource?
When it comes to business, there are a lot of things that you can outsource in order to save money. For example, you can outsource your customer service, your accounting, and even your marketing. However, one of the most controversial topics when it comes to outsourcing is whether or not you should outsource your IT.
There are a lot of people who are against outsourcing IT because they feel like it is a security risk. They worry that if you outsource IT, then you are giving someone else access to all of your company’s data. However, there are a lot of benefits to outsourcing your IT that outweigh the risks.
One of the biggest benefits of outsourcing IT is that it can save you a lot of money. When you outsource your IT, you are essentially hiring someone else to do all of the work for you. This means that you don’t have to invest in expensive equipment or software. Additionally, you don’t have to pay for someone to maintain your IT infrastructure.
Another benefit of outsourcing your IT is that it frees up your time. If you are spending all of your time managing your IT, then you are not able to focus on your core business. However, if you outsource your IT, then you can focus on growing your business.
Finally, outsourcing your IT can also help you to scale your business. If you are growing quickly, then it can be difficult to keep up with the demand. However, if you outsource your IT, then you can easily scale your business without having to worry about your IT infrastructure.
Overall, there are a lot of benefits to outsourcing your IT. However, you need to make sure that you are working with a reputable company that has ISO Certification. You also need to be clear about your expectations. But, if you do it right, then you can save a lot of money and time by outsourcing your IT.
Is outsourcing here to stay?
Brunt Work is a top outsourcing company headed by entrepreneurs with over thirty years of combined experience running remote teams out of the Philippines. Their unique “remote only” outsourcing model is stealing market share from incumbents at an alarming rate, with their top line revenue increasing 181% versus last year.
While SMEs continue to debate the merits of outsourcing, the growth of companies like BruntWork suggest that outsourcing is here to stay.
Advertising disclosure: We may receive compensation for some of the links in our stories. Thank you for supporting the Village Voice and our advertisers.