Outsourcing is an old phenomenon that has evolved to become more meaningful to businesses in recent time. Nowadays, companies outsource different business functions, from IT to customer service, HR and accounting process. Some years back, the need for cost reduction became a major concern in the business world. As a result, organizations were looking for temporal solutions through offshore software outsourcing. Amazingly, they got virtually equal benefits.

Years after, outsourcing (particularly offshore outsourcing) has become the ‘in-thing’ in the business world, not just for cost-saving but also a strategy for growing a business. Outsourcing of IT is a popular trend among corporations and businesses of various sizes. IT outsourcing vendor provides organizations with quality information technology services in stipulated time limits, more effectively and efficiently. In return, any company would achieve optimum flexibility with its workforce, and also gain access to best skills set that possibly wouldn’t have been affordable in-house.

Outsourcing of IT – Fastest Way to Migrate to New Technology

The outsourcing destinations such as Philippines and India employ the latest IT techniques in serving their offshore clients. Therefore, a company is able to access the newest technology that may not yet be available in-house or even in the home country as a whole.

The renowned IT destinations such as Philippines are usually ahead of less-technologically developed countries in terms of latest IT inventions and developments. So, when a business embarks on outsourcing of IT, it enjoys the benefit of migrating to a new technology faster than its competitors in the home-country. Consequently, the overall result is distinguishable in comparison with the competitors. Work processes are conducted faster; there is increased flexibility and all-round enhancement.

This advantage can be enjoyed on a short term or long term basis depending on the decision of the company.
Leveraging specialized skill is also an advantage inherent in IT outsourcing. Whether it is offshore or in-shore outsourcing, the outsourcing vendor is usually specialized in information technology. The specialized skill provides quality and excellent result, the kind of result that cannot be measured with an in-house result. Also, access to large pool of talents is one of the benefits of outsourcing your company’s Information technology tasks.

Outsourcing of IT enables a company to maximize the important aspect of its business, in order to achieve great efficiency in running the organization. Information technology is the engine-room of any organization. Therefore, success in this area would ultimately result in success in other business aspects. It has become more affordable to outsource an organization’s IT than manning this department in-house.

Ensure that your choice of IT outsourcing vendor is based on the expertise of the vendor. First of all, look to the specialized countries when it comes to IT, then choose your vendor from such countries. The offshore outsourcing destinations for most businesses is Philippines and India, plus other countries.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com

Usually, a company that wants to cut costs would take to outsourcing. It could be the information technology aspect of the company or other tasks such as customer service. Outsourcing in IT involves the delegation of the IT task of a company to an IT-specialized company either in the same country or offshore. Almost every aspect of an organization’s IT tasks can be outsourced – computer programming, data processing, website development as well as technical support.

Increase in task operation flexibility is one of the desirable benefits of outsourcing. Thus, the speed in performing business functions will improve significantly. Also, a company would channel more of its in-house skills to its core competencies by outsourcing the complex aspects. Information technology is one of the most outsourced business tasks. The reason is not far-fetched, the cost of training, developing or equipping the IT department of any company is usually massive. So, small, medium and large scale businesses prefer to take advantage of the significant cost difference between in-house IT development and IT outsourcing. In addition to the cost benefit involved in IT outsourcing, the best IT skills and practices are obtainable in IT outsourcing.

Information technology has evolved to become an important platform for business operation. Therefore, optimum attention to this essential business process is required. Outsourcing in IT is probably the best way to run an organization’s information technology platform, it is significantly cost effective and valuable (in terms of expertise). Fund flow constraint is usually one of the reasons for outsourcing IT tasks in an organization. Luckily, the decision to outsource pays off beautifully. Look out for an outsourcing IT vendor that would adopt a consultative approach in handling your company’s IT needs. Therefore, outsourcing in IT would produce excellent result when you contract an outsourcing company that specializes in IT.

In addition to cost saving benefit, outsourcing your organization’s IT tasks also provides the following benefits;

• Liability Transfer; when a company embarks on IT outsourcing or any other business process outsourcing, it transfers the inherent liabilities associated with such business tasks, especially when the task is not within its core competencies.

• Work-leisure Balance; “All works and no play…” Outsourcing in IT or any other business task is one of the best ways to optimize work-leisure balance. This is especially the case of a small-scale business where the few hands tend to overwork.

• Risk management; one of the best ways to manage business risk is to outsource the risk-prone tasks to a vendor who is better equipped to provide the mitigation.

There are countries that specialize in IT outsourcing, they include Philippines, India and a lot more. You will achieve satisfaction by hiring the best IT outsourcing vendors in these countries.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com

In answering this question, it would be best to delve into the incentives that accompany outsourcing. While a lot of people are still wondering whether it pays off well to contract outsource services, a lot of companies and individuals are massively reaping the benefits that come with business outsourcing.

Let’s quickly examine some of the top incentives that come with business outsourcing;

Minimal Operation Cost
For any company or business to record significant profiting, operational cost must be as low as possible. Achieving this level of minimal operation cost is an uphill task when such business functions are undertaken locally. For instance, here in United States, the average cost of maintaining an employee (HR cost) on an hourly basis is significantly high. This situation is worsened by certain government-imposed employee maintenance costs such employee insurance costs, social security costs and others. On the contrary, such costs are not part of business outsourcing contract, especially on an offshore level. So, you can imagine the massive savings that organizations enjoy by opting to contract outsource services.

Contractual Certainty
In addition to financial incentives, it also gives peace of mind in knowing that the contract is legally binding. This provides a legal ground to recoup any loss in the event of damages caused by substandard performance. On the contrary, you may only fire or discipline a defaulting employee in-house, but the company will solely bear the loss resulting from an employee’s negligence or poor performance. The contractual agreement in an outsourcing situation provides the expected performance quality, the specific job to be done, the stipulated timeline for task completion, as well as any other similar grounds that may exist. Consequently, the service receiver can embark on a legal action for breach of agreement.

Core Activities Receive more Attention
This is one of the juicy incentives from choosing to outsource your company’s operational functions. More often than not, the core activities of an organization are neglected. By hiring outsource services, an organization frees up resources for its core activities. Contrary to the opinion of many, the savings from outsourcing is not stored up by the company owners, a large chunk is re-channeled to the heart-beat or core activities of a business.

Risk Management
Most times, the outsourcing vendor is better equipped to manage the risk inherent in a business function. So, by choosing to outsource a business function, a company had tactfully averted a potential risk from such business process, leaving the outsourcing company to bear the potential risk knowingly or unknowingly.

The list of benefits associated with outsource services can go on and on. Finally, these benefits are better experienced than told. Look to the renowned offshore destinations when you have a need to embark on offshore outsourcing – Philippine outsourcing is renowned for efficiency. This is also the case of India, China and other offshore destinations.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com

Outsourcing has evolved to become a regular practice in today’s business world. Several businesses have experienced exceptional growth by outsourcing some of their business operations to offshore professionals at comparatively low cost. Outsource Philippines vendors are making great waves, their outstanding performance in handling outsourced processes is the reason behind this popularity. However, you need to choose an offshore outsourcing company carefully.

Here are some useful tips on how to decide which outsource Philippines company is right for your business;

• How Knowledgeable is the Vendor concerning the Required Business Process?

This is very essential, you would not want to end up with a shabby or sub-standard performance. Each business operation is better handled by an offshore company that has expertise in that area. For instance, it is best to outsource IT tasks to a Philippine outsourcing vendor that specializes in Information Technology. The result would definitely be different from a general outsourcing vendor. However, some outsourcing vendors run several segments under one umbrella and each segment is usually very skillful in its area of specialization.

• Check the Vendor’s Portfolio

The portfolio of a potential outsource Philippines company will reveal its capacity or incapacity to handle the required business process. The portfolio would showcase both past and present concluded projects. It is not enough to feed your eyes with the portfolio contents, take a step further to contact some of the clients and find out if they were truly satisfied. Ask sensitive questions in tactful manners to ascertain if the clients are merely make-shift clients. A phony outsourcing vendor may arrange with their partners elsewhere to act as clients and claim absolute satisfaction when contacted. So, ensure you ask sensitive and intelligent questions that are capable of revealing the true situation.

• Research the Vendor Extensively

Do not take an offshore outsourcing company only on face value. Extensive research is necessary and would reveal the company’s reliability or otherwise. Things to research about an outsource Philippines vendor include years of operation, expertise in the required business process, membership to a professional body, license to practice and more.

Ask Intelligent Questions

If you are not well informed about the outsource-able business process, allow an informed member of your business group or employee to interview a potential outsourcing vendor. Asking direct and relevant questions would reveal the expertise of the vendor in that area or otherwise.

No doubts, hiring outsource Philippines vendor for business processes comes with exceptional benefits. However, those benefits are only real when you hire the right vendor. Do your research very well and take note of every bit of information. If you are not too sure about how to get the right vendor, contact a professional intermediary between outsourcing vendors and clients.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com

These days, it has become a common practice for businesses to outsource part of their operations or processes. Offshoring Philippines service is well known for desirable outsourcing outcome. Regardless of the size and type of business you operate, you can outsource some of the functions or processes such as the IT (Information Technology) functions, customer service, as well as accounting processes. The cost-benefit of offshore outsourcing among several other benefits is the major attraction to offshoring.

The need to cut costs in business operation is the driving factor behind offshore outsourcing. Thanks to the enabling factor, the internet, which facilitates instant digital data processing and delivery to and fro any part of the world. The early days of offshore outsourcing was greatly influenced by certain major factors such as pressure to lower the cost of running a business, especially operational costs – e.g. admin cost, payroll and utilities. Also, productivity enhancement is among the major factors behind the development of offshore outsourcing. So, companies save significantly by outsourcing some its business functions. Subsequently, the prices of their products would compete favorably. Therefore, businesses that are not yet leveraging offshore outsourcing are not maximizing cost benefits.

As your company prepares to embark on offshoring, there are things you need to know. Here, we will examine some valuable pieces of information on outsourcing;

What are the Characteristics of an Offshore-able Business Task?

Generally, almost every business process or function can be outsourced. Take a look at certain criteria or characteristics of a business task or process that can be outsourced;

• The wage difference or the cost of undertaking the business process at-home is significant when compared to the cost quotation offshore.
• The information content of the job is usually high
• It is possible to tele-work the task
• Setting up the task is not problematic
• Task transmission over the internet is feasible
• The task is repeatable.

Obviously, virtually all business processes meet the criteria specified above, which is the reason for massive business process outsourcing in recent time. Offshoring Philippine companies provide top quality services for any business function or process. However, you need to choose an offshoring company carefully and wisely.

Is Offshore Outsourcing a Legal Contract?

Very well, offshoring Philippines services and offshore outsourcing as a whole are contracted legally. Legal paper work is involved, so that a defaulting party can be prosecuted. So, ensure that all legal paper work is put in place, including the signing of project agreement by both parties. This is the only way a party to the contract can lay claims on damages or breach of agreement.

Indeed, outsourcing is desirable and any company (big or small) can take advantage of offshore outsourcing to grow and become famous.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com

Offshore outsourcing services are extensive, offshore outsourcing vendors handle virtually all aspects of business operation. The cost of undertaking such organizational processes locally is the reason behind the stunning growth of business outsourcing. Such costs include government-imposed employee maintenance costs which can get crazily high in the first world countries. Amazingly, the same business processes are carried out offshore with the lowest possible cost, without compromising performance quality.

Minimal operation cost is just one out of the several benefits from embarking on offshore outsourcing. However, financial incentive is the major attraction to offshoring the tasks of an organization. Of course, fewer expenses would ultimately raise an organization’s revenue significantly.

Virtually every aspect of a company’s business processes can be outsourced. Basically, a company can achieve huge financial benefits and other incentives by outsourcing the following tasks;

IT Tasks; information technology is one of the most outsourced business tasks. The reason is not far-fetched. Most of the IT outsourcing destinations has the best IT skills compared to local providers. Yet, it costs far less to obtain information technology services offshore than it would cost in-country. IT offshore outsourcing services include computer programming, technical support, data processing and virtually every aspect of IT.

Accounting Processes
In addition to the cost savings involved in hiring an accounting pro internationally, it is also time-saving, especially when a company is embarking on expansion. For instance, the time it would take to set up a top-notch IT platform or accounting logistics in-house for the purpose of business expansion could be breached significantly by employing offshore experts. So, the several months or years (plus massive funds) that would have been wasted in trying to train personnel and establish a standard business expansion system in-house would be channeled to immediate profiting.

Customer Service
These days, customer offshore outsourcing services appear to generate improved result (both financially and in terms of performance quality) compared to in-country customer service. A business can outsource almost every aspect of customer services. It is also financially appealing to opt for offshore customer service outsourcing.

HR Services
Nowadays, companies also thrive excellently with HR outsourcing. Offshore HR experts charge comparatively lower fees to handle the human resource aspect of companies. A lot of organizations have expressed immense satisfaction in outsourcing their HR tasks.

Thanks to the World Wide Web and the internet as a whole, offshore outsourcing services are contracted with ease, and the delivery of completed tasks is almost instant. Indeed, outsourcing is a great way to maximize an organization’s earnings. It also helps an organization to focus on its core competencies, while allowing an offshore company to handle the rest. However, you must be profound and thorough when searching for the right offshore outsourcing vendor.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com

Offshore outsourcing Philippines service is very effective, it is an increasingly successful method for reducing the running cost of a business. Offshore Philippine outsourcing is quite reliable and widely sought after by different sizes of business, from any part of the world. In today’s business environment, outsourcing has become an integral part of organizational process because of the exceptional result from outsourcing part or all business processes.

What is Offshore Outsourcing?

Offshore outsourcing is a common terminology in today’s business environment. Well, if you are just hearing the term for the first time, welcome on board. When a business (large or small) hires an external organization outside its country of operation to perform part or its entire business functions, this is known as offshore outsourcing. Do not confuse offshore outsourcing with ‘offshoring’ – the latter is a situation whereby the business functions are carried out by a foreign subsidiary in a foreign country. The unparallel result from outsourcing has attracted companies of various sizes and capacities.

What Aspect of a Business Process Can be Outsourced?

Virtually all business processes can be outsourced offshore. Offshore outsourcing Philippines company provides top quality outsourcing services that include customer service tasks and Information Technology. IT outsourcing is very popular, every aspect of IT such as computer programming, data processing as well as technical support can be outsourced. Philippine, India and few other countries are well known for effective IT outsourcing. The most desirable aspect of offshore outsourcing Philippines is the low cost (compared to the cost of obtaining the services at home) involved, yet the quality of service is not compromised. This is why offshore outsourcing is making a lot of waves in recent time.

Basically, outsourcing offshore involves four major aspects;

BPO: Business Process Outsourcing. The aspects of business processes involved include insurance claims processing, running call center etc.
ITO: Information Technology Outsourcing; every aspect of IT such as technical support, computer programming, data processing and others.
KPO: Knowledge Process Outsourcing; offshore outsourcing Philippines service includes business processes that require higher skill set – e.g. carrying out investment research on bonds and stocks, X-Rays reading, accounting functions of a company that specializes on engineering design projects.
Software R&D: this refers to offshore software development.

So, whether you are running a medium-scale or large scale organization, you can lower your business running cost by hiring offshore outsourcing Philippines vendor. In subsequent posts, you will learn how to hire the best offshore outsourcing company in order to maximize cost benefits.

Take heed and ensure you do not end up with the wrong offshore outsourcing service. The outcome could be more devastating than you can imagine. However, if you do a profound research on the company and ascertain its credibility, your business will fly high as it leverages the cost-benefit from offshore outsourcing.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com

Nowadays, outsourcing has become a regular term in the business world. When a company or business appears to be dwindling due to high running cost, an expert would recommend outsourcing. The increasing effective outcome of outsourcing is the reason for the recommendation. Philippines offshore outsourcing is highly commended globally for the unparallel result that follows the services. Following closely to Philippine offshore services is India offshoring, especially in the aspect of information technology.

When an organization embarks on outsourcing, its flexibility would improve significantly. The evidences include increased speed in performing business functions and processes, as well as translation of costs to variable costs. Also, offshore outsourcing enables an organization to pay greater attention to core activities. Virtually every aspect of a business can be outsourced – whether customer service, information technology, accounting functions and others.

The most outstanding benefits of Philippines offshore outsourcing are;
Cost Savings; the total cost of any business process or function is reduced significantly when that company decides to outsource. Cost saving benefit from outsourcing is achieved as a result of re-pricing, cost-restructuring, business scope reduction and re-negotiation. All these elements come into play in the course of outsourcing, and the end result is significantly reduced cost compared to carrying out the same business processes at home.

Enhanced Quality; Philippines offshore outsourcing guarantees improved quality in business process performance. The change in quality is usually instant and obvious. This significant and sudden change attracts competitors and compels them to take advantage of offshore outsourcing as well.

Cost Reformation; comparison of fixed costs to variable costs is done via the operating leverage-measure. Consequently, when your company opts for business process outsourcing, there is alteration in balance of ratio as the company transits from fixed costs to variable costs. Also, it becomes easier to predict the variable costs.

Operational Proficiency; choosing to outsource its business processes ushers a company into business operation best practices. This is a level of operational efficiency that would have been cost-intensive, complex or time consuming to undertake at-home or in-house. So, Philippines offshore outsourcing provides the required expertise for the business process in question, at an amazingly low cost package.

Capacity for Innovation is Enhanced; this is another crucial benefit of offshore outsourcing. Thus, in-house inadequacy is supplemented through offshore outsourcing. A company that increasingly takes advantage of external expertise (via offshore outsourcing) would ultimately enhance its capacity for innovation.

Finally, it is great to know that Philippines offshore outsourcing or outsourcing as a whole is contracted legally. Therefore, your organization can take legal action against a defaulting offshore outsourcing company. So, your company is not going to settle for the less, a breach of agreement on the side of the offshore company can be prosecuted.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com

For decades past, outsourcing has been going on. Then, along the line, offshoring came into the scene. This is a level of outsourcing where overseas workers are hired to perform virtually all business functions. Offshore outsourcing services are widely sought-after by organizations of different sizes. Cost reduction was the driving force behind offshoring at the onset. Today, other benefits such as quality service, access to best talents, tax incentives, risk sharing and overall organizational growth are increasingly attracting companies to offshoring.

For several years, organizations spread their business tentacles, buying over other companies and expanding their conglomerates. At the onset, the businesses of these companies were related. The acquisitive tendency was massively driven by profit motive and desire to be the leading organization. But, it wasn’t long, the weight of the acquired companies became much on the parent companies, then the conglomerates came crashing. Consequently, organizations started switching back to their core activities or businesses.

Then, these organizations found out they could reduce the bulk of their business functions by using the services of more efficient providers. Besides, it is also very cost-effective to hire out more of those functions. Therefore, different business functions such as payroll processing, customer call centers, clerical functions and recruitment tasks were increasingly delegated to external firms – this is pure outsourcing. Eventually, oversea workers emerged in the scene, offering the best possible services in various business functions at the lowest possible cost relative to in-country employee hiring cost. Soon, Offshore outsourcing services became more popular than in-country offshoring.

Obviously, it makes a lot of sense to outsource. Several specialized offshore service providers made their services available to tons of client companies at highly reduced costs compared to carrying out the same business functions in-house or within the country (in-country outsourcing). This arrangement (offshore outsourcing) benefitted both offshore workers and their clients.

Offshore Outsourcing Services – The Current Trend

In recent time, US-based businesses and organizations have increased offshoring practice. This is also true about some of the civilized nations. In the United States today, the so-called white collar jobs are outsourced massively to relatively cheap labor. The top offshore locations include Philippines, India, China and others. Interestingly, there are tons of experts in different business sectors offering better quality services than their counterparts in the developed countries.

According to a recent survey, it would cost 50%-80% more to hire a US worker to provide the same (or even lower quality) service just as an offshore worker would do. The offshore workers who are usually highly trained experts in their field will charge about 20 – 30 percent to deliver quality service.

Therefore, companies are saving massively by contracting offshore outsourcing services. This is why several companies in the United States are expanding by the day. They are simply re-investing the massive savings from reduced labor cost.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com

Offshore outsourcing has evolved to include diverse areas such as virtual assistance. This aspect of offshore outsourcing has become very popular in recent years as the need for virtual services has grown leaps and bounds. Philippines offshore outsourcing services also include handling of virtual assistant tasks.

Here are the different aspects of virtual assistance tasks that offshore employees specialize on;

• Answering Phone Calls and Checking Voice Mail
Perhaps your business is in its growth peak and it has become difficult for the existing staff to handle the bulk of phone calls and voice mails that comes in daily. One of the best ways to handle this issue without recruiting more hands or paying for additional office space is to hire offshore virtual assistants to help reduce the burden on your existing staff or take over the phone call and voice mail tasks completely. This will free up your workers to focus on more pressing tasks that came up as a result of the growth.

• Virtual Calendar Maintenance
Philippines offshore outsourcing virtual assistants also help a company to maintain virtual calendar in very efficient manner, as though the calendar is resident in the company’s originating country’s office.

• Travel Reservation Tasks
Offshore virtual assistants will also help your company with its travel arrangements and reservation needs. Once you spell out the requirements of the task along with the necessary details, be sure to get the exact result you had in mind while outsourcing your travel reservations need.

• Newsletters Creation
Newsletter is a great way to stay in touch with your existing customers and also attract potential customers. Creating quality newsletters along the line of your business without sounding boring requires expertise. There are Philippines offshore outsourcing virtual assistants that have been trained in this line of business function. So, you can hire such capable hands for your company’s newsletters and be rest assured of stunning result.

• Providing Business Presentation Tools
Offshore virtual assistants also provide organizations and small businesses with business presentation tools for seminar and speech delivery. Your offshore virtual assistant will help you prepare your speech or seminar content in the most compelling format using Power Point office package.

There is no aspect of your business that cannot be outsourced to an offshore employee. Luckily, the cost of hiring offshore employee is getting more effective by the day. Amazingly, the quality of service rendered is the same or even higher (most times) than the in-country staffing option which is usually cost-intensive.

Companies and businesses are getting smarter with their running costs. They keep it as low as possible these days by taking advantage of offshore outsourcing. Philippines offshore outsourcing virtual assistants are at the beck and call of any organization that requires offshore services.

Daven Michaels is an award-winning outsourcer and author of the book, ‘Outsource This!’ Daven has been honored more than any other individual or outsourcing organization. You can get more information on outsourcing by visiting www.123Employee.com