Pilippines Outsource Service: If you are considering outsourcing part or all of your business functions, you may want to achieve the following benefits:

Cost Reduction: the overall cost of business functions orservice is minimized with outsourcing. It entails scope reduction, re-pricing, quality levels definition, cost-restructuring, as well as re-negotiation.

Improved Performance: When a company embarks on outsourcing, it would have access to business operation best practices that would have been quite complex or time consuming to handle by the in-house employees. So, ultimately, such company would achieve improved business performance.

Creating More Leisure Time: this is especially for individuals who outsource some or all of their business functions to have more time with their families and also to minimize work stress.

There are numerous benefits that attract companies (both big and small) and individuals to business outsourcing. When looking to embark on offshore business outsourcing, Philippines outsource services are quite popular and cost-effective. Also, top quality services are rendered.

Are you looking to contract Philippines outsource vendor? Here are things you should look out for;

Assess the portfolio of the potential vendor: the portfolio should contain certifications in specific outsourcing areas as well as general outsourcing certifications. It should also hold proof of membership to relevant outsourcing body, either locally or internationally. In addition, references of past projects and their contacts should be part of the portfolio of a competent business outsourcing vendor.

Proof of required skill possession in the intended business operation or function. Potential Philippines outsource vendor that is specialized in web-based outsourcing may not perform satisfactorily in HR outsourcing, except it has multi-skilled staff. It is really more efficient to contract a company that has proven skills in the business area you need outsourced.

-Availability of well-defined processes for achieving your company’s outsourcing needs.

-Use of robust technologies

-247/7 support

-Workflow orientation

-Constant open lines of communication

-Process and domain specific knowledge

-Significant cost reduction compared to performing the same business function in-house.

-Successful business process outsourcing solutions

-Advanced processes that help in achieving maximized ROI (Returns on Investment).

The extent of your success with outsourcing will depend on the expertise and general abilities of the outsourcing vendor in your area of need. So, you need to search thoroughly, using the required industry-standards and other criteria.

Philippines outsource services are quite commendable for both in-country (if your business resides in Philippines) and offshore (outside Philippines) business outsourcing needs. However, the task of choosing correctly and effectively lies in your ability to do proper and extensive research. Don’t rush over it, sometimes it may take over six months, but it is worth such duration if the end result is excellent.

Daven Michaels Author of the book Outsource This!

Custom software is a program developed from scratch to meet the specific program requirements of companies opting to use custom software rather than purchasing a generic application. Custom software development is no easy task and for companies with limited resources, using the services of IT outsourcing companies can help them get custom software at a cost effective rate. Most custom software development is designed to contain features that will allow it to be configured according to the needs of the company. This means that IT outsourcing companies can offer services for developing database programs or stand-alone software depending on the company’s specific requirements.

There are various benefits one can enjoy from using custom software via IT outsourcing companies although it does take quite some time before a particular customized software can be configured or developed as compared to ready – to – use software. However, once custom software development starts running, most companies find it to be more efficient and economical by using customized programming as an integral part of their company operations.

Outsourcing custom software development is advantageous for SBOs and medium scale business organizations that operate on limited budget. Because custom software takes time to create, small business organizations do not have to face the financial difficulty of paying for the program immediately. They also do not need to set aside capital for establishing their own IT team which is counterproductive, particularly when the software requirement is for a one time use only. As compared to buying a generic business application where you have to pay the complete fee at the time of your purchase, custom software development from IT outsourcing companies allows you to budget your finances over the cost of their services for software development. During the development stage, companies have the time to tailor it to meet their requirements where significant changes can be integrated as the software is being developed.

Another benefit of outsourcing custom software from IT outsourcing companies is that the business application can be developed using an existing program structure. This is more economical in the long run since the software will not be created from scratch. Companies often meet with program developers to evaluate what other components have to be added in the software to come up with a customized program made to meet the specific requirement of the company. This can also save the company a lot of money in training expenses, since only the part integrated in the existing program will need training to operate. The good thing about this is that IT providers can offer training during the stage of the software development which can save the company a lot of time spent on delays in operations, due to human resource orientation.

Outsourcing custom software development from reliable IT outsourcing companies allows business entities to develop a particular program that fits in with their business processes rather than changing their entire business operation to fit in to the programming of certain software for their operation.

Daven Michaels Author of the book Outsource This!

The Philippines outsource industry has offered great advantages for companies in the business sector. The idea of performing one’s work so that the stability and flexibility of a company can be maintained is a great attraction for a profitable business. In the Philippines, the services being outsourced include call center operations, accounting and finance, IT services, customer support services and technical support which can mostly be obtained at very low costs compared when these jobs are done on shore.

Quality assurance and cost effective labor force is the main selling point of the Philippines outsource industry. BPO services are not new in the Philippine economy and it is a strict competitor of other offshore outsourcing destination like India and China for the past ten years. Although labor cost in India and China is far cheaper than in the Philippines, quality assurance is at the minimum. But Philippine BPO providers package these two factors so in the end, clients will still enjoy a sizeable savings and bigger ROIs when quality of work is translated into profit. A good advantage of BPO providers in this country is that 90 percent of its labor force can speak and write English fluently so it eliminates the language barrier which can hinder the with way decisions are made or instructions are understood. The country also has one of the highest literacy rates among other Asian countries which in itself are an excellent benefit for those looking for an educated and quality labor force.

The Philippine outsource industry took sometime before it was recognized for its world class quality. At present, the BPO providers in the country now offer various business process outsourcing services including hiring professionals as per the client requirements. Other BPO destinations within in the country are also opening up as companies look for better ways to save on operational expenses. BPO providers with operations within the country’s key cities are naturally expensive as compared to similar companies operating in the provinces. Other areas in Luzon particularly in the Bicol region are being explored and there are several call center outsourcing companies who are already operating in these locations.

The expansion of BPO operations in nearby provinces is a clear sign of growth for the Philippines outsource industry. The good thing about the offshore outsourcing industry in the country is that even the Philippine government is highly favorable for the growth and multidimensional improvements which significantly help companies hire highly skilled workers ready for employment in just a short notice. The bottom line here is that the BPO services in the Philippines come in a variety of specialization which helps enhance not only its customer support but IT enabled solutions as well.

Part of the growing economy of the country is attributed to the continued and consistent growth of the Philippines outsource industry. With a number of foreign investors lining up to get a fair share of the profit, companies now have vast options when it comes to choosing the right BPO provider in the Philippines.

Daven Michaels Author of the book Outsource This!

Offshore outsourcing is the new and most effective way of running a business. Big companies often outsource part of their non-core business operation to other countries where they have the opportunity to take advantage of a much lower labor cost. But there is more to it than a cheaper workforce. Offshore outsourcing services allow companies to perform their core responsibilities while focusing all their efforts in developing more business opportunities. Offshore outsourcing services to developing countries can provide key benefits and financial advantages on the part of the company utilizing BPO providers such as:

• The tax base is significantly decreased because the costs of agreement will be shouldered by the BPO provider.

• Companies will also save a huge amount of money on wage taxes.

• Companies using offshore outsourcing services are also not obliged to pay for vacation leaves which can also affect manufacturing processes due to lack of manpower when an employee is on leave.

• Hiring new employees can add up to the operation expenses of the company. When services are outsourced from offshore destinations, the BPO provider will be the one who will have to shoulder the training expenses and other related costs associated with employee education.

Offshore outsourcing services also provide manufacturing companies with a number of benefits. These include:

• Manufacturing companies will be able to focus their attention in looking for a viable solution when main production glitches arise instead of dividing company resources between manufacturing process and managerial operation.

• Companies will not be required to look for employees with the skills needed to perform a specific job description.

• The BPO providers that specialize on specific services can solve manufacturing problems faster because they know the ins and outs of running the operation.

Organizations today are more confident with offshore outsourcing services particularly in the IT sector. Information technology is a growing industry and it is now an important tool for improving a business. When these skills are not available in-house, outsourcing could be the key solution and companies will be able to get access to professional services that can guarantee top of the line results. There are offshore outsourcing destinations like the Philippines and India where BPO providers can offer a qualified workforce not only for IT requirements but for other business process requirements as well, including customer and technical support. Offshore outsourcing services may range from data entry to programming, call center services with IT enabled solutions, back office operations, web development services, and infrastructure. Other offshore outsourcing services are communication and networking, medical transcription, onsite services with customer support, relationship management, and community management among others.

With the ever increasing globalization of business, outsourcing services prove to be the most cost effective way of running a business geared towards expansion and growth. The growing presence of offshore outsourcing companies in countries like the Philippines and India is a sign that outsourcing is fast becoming the norm for increasing profits while reducing the company’s operational expenses.

Daven Michaels Author of the book Outsource This!

Custom software for business processing can increase the efficiency of any company who integrates custom applications in their work process. In today’s technological era and growing IT outsourcing industry, it has become a necessity to use IT advancement especially for business entities in order for them to adapt to the ever changing market conditions and meet the demands of their clientele. The competitive industry of all types of ventures drive business entities to come up with effective programming solutions tailored meet to the specific requirements of their business operation. This particular market demand has made valuable recognition of the importance of having customized software application that can help the company’s operation run more efficiently. Among the IT outsourcing benefits for custom software development include effective business management, supervision, and diminishing of unnecessary operational expenses.

In every aspect of a particular business operation, having customized software application as an integral part of the entire business setup and procedure allows the company to run more efficiently. One of the major IT outsourcing benefits is the immense knowledge of IT providers on the field of program development as well as the experience to implement it effectively in parallel to the entire business. Developing a custom software application starts with the evaluation process with regards to the application requirement of a particular business entity where the software application is to be integrated. This can be a very rigorous process and companies will be sacrificing much of their resources should they decide to do this in-house.

It is important to understand all vital factors involved in a developing customized software applications for a business operation. This process will serve as the determining factor whether or not the custom solution will help improve the business operation. This will also play a crucial role in deciding which of the IT providers to choose that can offer more IT outsourcing benefits such as competent customer support, cost effective program maintenance, and other related concerns. The IT outsourcing provider must have a full understanding of the entire business structure and learn the needed requirements for the business to be able to run efficiently as expected by the company. This can be done by meticulously planning the specific approach to be used and creating a structure of the entire business operation which will be integrated in the end result of the customized software application.

With the integration of customized software application in the entire operation of a particular business entity, business owners now can have that perfect custom solution that will work best for their businesses. This is one of the outsourcing IT benefits that cannot be achieved through packaged software application. This is guaranteed to work for all types of business and this is one of the major reasons why most SBOs with a limited budget that are aiming for increased efficiency in their business operation opt to use customized software application by outsourcing its development. Even small businesses will be able to have a functioning solution that is essential for successful business growth.

Daven Michaels Author of the book Outsource This!

With the never ending technological innovation we experience today, especially in the field of business software programming, gone are the days when custom software development means using pre – programmed templates for the basic framework of the software application. With the introduction of outsourcing in IT for customized software and business applications, this has become increasingly popular to meet the needs of business owners who are looking for customized solution to improve their business processes. Most key players in IT outsourcing industry started developing customized software to meet the increasing demands of privately owned companies. This is because using custom applications is the most efficient solution for companies to make their operation well-organized, privatized, and more competent amidst the growing need for a more user friendly business environment.

But not all companies can set up their own in-house software development team because of various factors such as the expensive of setting up new resources, training, upgrading equipment, and other related factors. Most companies banking their success on operational discretion often have their software development outsourced to IT providers who are well equipped for this field. They then integrate it in their operational framework to improve work processing within the company. Outsourcing IT requirements like software development provides companies with the opportunity of improving their business operation without necessarily increasing their operational cost.

There are a lot of reasons why companies prefer outsourcing their software requirements for custom solutions rather than buying off shelf software. For starters, the main reason for choosing customized software against generic application is privacy. Being private means there’s no need to license the program no matter how many users the program will be distributed to. Apart from that, only the outsourcing company and the people involved in it have the knowledge with regards to how the software works and its importance to the operational capacity of the company.

When it comes to outsourcing in IT for customized software development, the good thing about this is that it takes less time to configure compared to in-house software development. Since it will be largely based on the basic framework of the company’s operational services, developing it is a lot easier. There’s no need for the software developer to be concerned about other issues not related to the company’s requirements as long as the specific software requirements have been provided by the client. During the development stage, there is a higher probability that both the company and the IT provider will be able to reach a more effective by – product. This is because they can be able to work out a smooth working relationship all throughout the project duration. Complicated processes including software testing and application, maintenance, and training are also easily implemented as compared to using packaged and generic software for business requirements.

The need for customized software integration in the framework of company’s operational procedures allows businesses to provide efficient and convenient functionality in addressing the growing demands of the industry. This is one of the reasons why outsourcing in IT has becoming a growing industry due to the increasing demands of various companies for a custom business application.

Daven Michaels Author of the book Outsource This!

One of the fastest growing industries in the Philippines today is BPO or Business Process Outsourcing. The recent growth in the industry made Philippines outsourcing services the most sought after BPO in the South East Asia region. The outsourcing industry began to experience expansion in early 2000 when only a handful of BPO providers and employees were available. But as the BPO sector in the country continues to develop, more and more foreign investors are enticed to explore their opportunities in expanding their business with Philippine BPOs. The annual growth is attributed mainly to factors like lower labor costs with high quality output, the country’s adaptability to western culture, and a highly skilled workforce.

Next to Canada and India, the Philippines is considered to be the third largest offshore outsourcing destination in the world. At present, the country’s outsourcing industry accounts for about twenty five percent of the global business process outsourcing market which makes it a prime hub for business outsourcing in the South East Asia region. The attraction of the BPO market in the Philippines have enticed giant outsourcing operations for established companies from developed countries like the Bank of America, HSBC, Dell, IBM, Citi Group, and JP Morgan Chase who all have set up contact service centers in the country.

Among the reasons why Philippines outsourcing services experienced a consistent growth in the global BPO industry are several factors. Most outsourcing hubs in Asia offer competent human resources but none have higher literacy rate than the Philippines. This makes the Philippine labor force superior in education qualifications, not to mention their English language skills are an advantage for bringing down the communication barrier. The country also offers a strategic location ideal for Western and Eastern companies. This is to say that the country is thriving entry point to millions of people in the ASIAN market.

A lower labor cost can be translated into lower production cost and the good thing about this is that the quality of the output is never sacrificed. Filipino workforce is known for their dedication and loyalty and business companies can take advantage of these characteristics for acquiring a cost effective workforce with all the right values and skills. There is also a growing development in infrastructure which is an excellent enticement for investors. At present, BPO operations key cities in the country branched out to nearby provinces further lowering the cost of hiring employees and operational expenses in general.

According to the independent study performed by IDEA (Institute for Development and Economic Analysis), the outsourcing industry in the country earn annual income of P3 Billion in National Capital Region alone and this figure does not yet include other players in nearby provinces. Although Manila and Cebu is still among the popular choice for Philippines outsourcing, other provinces are starting to catch up in the effort to turn their regions into key outsourcing destinations in the country with lower cost but with higher quality of workforce. This is a healthy competition that forces out other BPO providers to match the quality services offered by BPO counterparts in provincial districts.

Daven Michaels Author of the book Outsource This!

Sales outsourcing is the practice of hiring a third party service provider to act as your company’s sales force. Many companies have discovered the numerous benefits of outsourcing the sales force and they have resorted to hiring other agencies to handle their sales functions. Tele-marketing and customer survey are among the outsourced tactics most often used to increase the sales of a product.

One of the benefits of outsourcing a sales force is that a company is able to save a lot of money and gain more at the same time. While running a sales department in house could be a tedious exercise that could cost the company a fortune, hiring a third party service provider to handle such a department could be the best decision for a company to make. An outsourced company is cheaper and the company gets to focus on its core functions thus increasing its efficiency and gains.

Another benefit of outsourcing a sales force is that the sales are increased immensely because the third party service providers are usually a group of dedicated sales professionals who are well trained and can better articulate the product in the market. Since they are dedicated to one major side of the business (sales), the results are usually more significant than when the task is performed in house.

In fact, for new companies seeking to enter a given market, outsourcing their sales force is one of the best decisions they can make. In this case, the business can reap the benefits of outsourcing by engaging a third party service provider that understands the market who will enable the product to gain ground fast. This will shorten the learning curve and reduce the time that would have been wasted in spending a lot of company time hiring and training its in house sales team for this sales task.

Outsourcing a company’s sales force also enables a company to expand into new markets. This is a major benefit of outsourcing because the third party service providers who specialize in sales are usually experts in designated market areas and since their main focus is usually sales. The outsourcing service provider will usually keep a comprehensive database of what sales strategies work best and where.

The benefit of outsourcing is also seen when a company wants to assess the accomplishments of its current sales department in comparison with the industry. This is because by hiring a third-party service provider, one can see whether the internal sales efforts measure up to those of the sales outsourcing service.

Daven Michaels Author of the book Outsource This!

Outsourcing statistics have for many years shown the outsourcing of business is an increasing trend among companies in the US and other Western nations. However, it is since the 1990s that the outsourcing market has grown tremendously. Of course this has also generated a lot of political heat with debates on what outsourcing really means for developed economies and whether it really is for the benefit of their workforce as a whole. Outlined below are some interesting outsourcing statistics.

Outsourcing of business is most significant in the Information Technology industry. In the global outsourcing market, IT takes the lead at 28% of the total outsourcing market. This primarily came about due to the shortage of e- business application developmental skills in developed markets which made it expensive to hire skilled personnel. The Human Resources industry is another increasingly outsourced business process taking   15% share of all outsourced processes. It is closely followed by sales and marketing outsourcing which is at 11%. The remaining fields make up the remaining 32%.

Multinational companies are currently taking the lead in outsourcing. The most popular countries are India, The Philippines and China.

Despite the positive statistics described above, there are various problems that accompany outsourcing. Outsourcing of business in foreign countries may lead to geographical problems such as language barrier, labor laws that govern that particular country, political upheaval as well as cultural issues. With such problems being encountered, outsourcing may be hindered.

Before settling on an offshore destination for your outsourcing needs, it is advisable to consider some of the key factors that are affecting the particular country. Some countries may be hindered by poor communication infrastructure, low power generation capability as well as poor disaster preparedness. It is also advisable to look into past statistics of offshore outsourcing as well as past success stories of an outsourced project.

In 2006, studies showed that outsourcing activities made up for jobs worth $ 1.2 trillion annually. Economists are forecasting that by 2015, at least 3.3 million U.S jobs and salaries amounting to $136 billion will be moved to developing Asian and African economies. This will come as a result of inexpensive labor markets in the developing countries.

In the US, analysts have concluded that outsourcing of business is the biggest contributor to the current economic recession. The statistics have also shown that the high rate of outsourcing has greatly contributed to the recession. For this reason, the U.S could not offer alternative job opportunities for the laid off workers. This has come to be known as over- outsourcing.

Daven Michaels Author of the book Outsource This!

Outsourcing for business is a fast growing trend and has increasingly been accepted as an integral part of conducting modern day business. The benefits of outsourcing are well known and revolve around time and cost savings. However, just like every coin has two sides, so does outsourcing for business. A company should be careful that these shortcomings, however negligible do not negate the benefits that would otherwise be realized by outsourcing.

The first drawback in outsourcing for businesses is that it poses a major threat to a company’s internal innovation capacity. When a company develops a habit of taking on a third party service provider for key internal processes, the company’s internal knowledge base starts to diminish. Thus, the company’s delivery of a quality experience to its customers may deteriorate since internal staff may not be able to keep up with changing market trends.

Another downside of outsourcing for business is that it sometimes leads to product uniformity and the lack of variety. Over time, outsourcing service providers in the same country may start to use almost identical techniques in the delivery of goods and services to their clients. The result is that competing businesses that outsource to the same country may start to have products whose only difference is in the branding and packaging. Customers eventually latch onto this and it becomes difficult for a business to have a competitive edge in the market since products from different manufacturers become almost indistinguishable in function and design.

Outsourcing for business can also lead to the establishment of a dependency syndrome. This dependence on third- party service providers to carry out important company functions can see the business hamstrung if any of the third service providers were to pull out or collapse without warning. Through outsourcing, a business starts to lose control of its operations. Even though there is a contract between the business and the service provider, the truth is that trust still comes into play in the sense that the business expects the service provider to deliver on what they promise. A business also expects the service provider to be in familiar with certain small nuances that in actual sense can have a major impact on customers.

When a company opts for outsourcing for business, this will almost always lead to the loss of jobs of some of its staff. For businesses operating in a closely knit community, the community may be dissatisfied with the company’s actions. If this belief and perception spreads, it might lead to boycotts of the company’s products.

Daven Michaels Author of the book Outsource This!