In 2013, the Philippines edged New Delhi at number three spot in the top 100 global outsourcing destinations in the world; and while the Information Technology-Business Process Outsourcing (IT-BPO) industry believes that the Philippines is a very strong contender in the top five most cost-competitive termini for IT-BPO services, one US-based company boldly predicts that by 2030 IT-BPO will be a trillion-dollar economy in the nation.
The ushering in of the practice of outsourcing or offshoring in the Philippines during the last decade of the 20th century has only led to the unprecedented growth of this business strategy in the country, which also continuous to benefit developing foreign companies and third party organizations.
Began by only a substantial number of Fortune 500 companies, top companies in Australia have also started to outsource in the country services that include call centers, customer relationship management, back office/chat support, creative processes, HR solutions, application maintenance, healthcare information management, medical transcription, software development, legal services, research, content writing and blogging.
Outsourcing, is a business strategy wherein a host firm contracts out a business process to another organization, called a third party. This third party organization may be located within the host firm’s own country or outside it, internationally, thus, the term offshoring.
Host firms usually resort to outsourcing or offshoring movement of certain company projects or services due to the lack of the necessary expert or skilled individuals needed for the job or because outsourcing just proves to be much more economically favorable – both for the host firm, which is able to save much from company expenditures, and the third party organization, which is able to create jobs while earning profits at the same time.
But what makes the Philippines a destination that deserves primary consideration? Top American and Australian companies that are already settled in the country agree on these same points: the employees’ high literacy and expertise in various areas, strong skills in the English language, a firmly established telecommunications infrastructure, competitive labor rates, and many others.
According to the website of Pinoy Partners Outsourcing Center Inc., some examples of outsourcing services available in the Philippines include chat support services, medical billing, SEO work, outbound calls, airline and hotel reservations, blogging, content writing, smartphone application building, and computer programming.
The path of online technology is continuous improvement, making people even in the remotest places on Earth fast and easy to reach. Outsourcing or offshoring has been proven totally beneficial and advantageous, without doubt. The only question is, who else is eager to get onboard?