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Staff outsourcing is just one of the many areas where offshoring providers in the Philippines help organizations. Companies must be cautious when outsourcing services because if the hired employees lack the competencies or qualifications to do the job, inefficiency, weak performance, client dissatisfaction, and financial loss might happen.
This article is for businesses that want to know the basics of staff outsourcing services in the Philippines. It discusses its definition, advantages, possible drawbacks, and useful tips for proper outsourcing.
Read until the end to learn how to choose the right provider for staff outsourcing services.
What Are Staff Outsourcing Services in the Philippines?
Staff outsourcing services in the Philippines involve acquiring employee assistance through a third-party contractor or a business process outsourcing (BPO) company. These third-party teams, composed of Filipino professionals, perform mainly back-end processes.
The third-party team includes Filipino remote workers, virtual assistants (VAs), or work-from-home (WFH) freelancers with different skill sets to meet specific organizational requirements. These local workers excel in the following skills:
- Administrative activities
- Back-office support
- Basic bookkeeping
- Basic information technology (IT) knowledge
- Content writing
- Customer support
- Data entry
- Digital marketing
- Email management
- Graphic design
- Social media management
- Search engine optimization (SEO)
- Web development
Additionally, Filipino third-party team members typically have above-average interpersonal and communication skills. These workers are knowledgeable, responsive, patient, proactive, resourceful, and helpful. One of their responsibilities is to finish short-term tasks or projects that in-house staff need more qualifications for or time to complete.
One of the reasons to opt for staff outsourcing services in the Philippines is that BPO companies can provide reduced service fees due to the affordable and first-class Filipino workforce they recruit. Outsourcing also frees up valuable in-house resources such as time, money, and effort, enabling the client to focus on higher-value organizational operations.
The Philippines offers top-notch VAs, remote workers, and WFH freelancers. They are sought-after professionals not only because of their affordability but also because of their performance, productivity, proficiency, and personalized service.
Advantages of Staff Outsourcing Services in the Philippines
What benefits do organizations enjoy when choosing staff outsourcing services in the Philippines? Let us check the details.
Strong English Skills for Easier Client Interaction
Many Filipino professionals are fluent in English. The Philippines consistently ranks in the “high proficiency” group of the EF English Proficiency Index (EF EPI). The regular global survey puts the country in the top 30, placing it second in Asia after Singapore. Highly proficient means the citizens can read, speak, and understand English well.
The Philippines adopted English as its second official language and a medium of instruction in most educational institutions, from elementary school to college. As such, many students become familiar with English upon completing their formal education.
Their high English proficiency makes it more convenient to communicate and collaborate with Filipino VAs, remote workers, and WFH freelancers. American, Australian, Canadian, and British employers, customers, and clients can work with them, discuss business, and make transactions with minimal to zero language barriers that affect understanding.
Filipinos’ solid English proficiency makes staff outsourcing services in the Philippines in demand. Businesses that rely on customer support, help desk, chat support, virtual assistance, and other back-office outsourcing functions require English-speaking professionals.
Exceptional Staff with Reasonable Salaries to Optimize Operations
Filipino professionals’ competencies (e.g., hard skills, soft skills, technical experience, and educational level) are comparable to those of workers in more advanced countries such as Mexico and Singapore. But their wages are more affordable. This is one reason staff outsourcing services in the Philippines is an ideal option.
Filipino VAs earn almost $500 monthly, as per their work experience. The average monthly salary of a Mexican VA is nearly $800, while a Singaporean VA earns around $3,100. The Filipino VA’s salary is 50% lower than in Mexico and six times less than in Singapore.
With low salary costs, Philippine BPO companies benefit from decreased total operating expenses. Hence, they can offer clients top-notch third-party team services at reasonable fees—less than their competitors.
The country’s relatively low cost of living is why wages are cost-effective. The Filipino VA’s $500 monthly salary is almost sufficient to pay for an individual’s basic needs, such as food, groceries, rent, telecommunications, utilities, and transportation. A local worker shares expenses with an employed family member or a companion.
Cultural Similarity for Closer Client and Customer Relations
Outsourcing operations, such as deploying a contact center as a service (CCaaS) solution, are more likely to succeed when third-party team members share a similar culture with foreign employers or clients. This is one of the reasons businesses in the United States and other Western nations seek out staff outsourcing services in the Philippines.
The Philippines leans toward American culture and ways of life. It was a U.S. colony for nearly 50 years, from 1898 to 1946. During this period, the locals adopted and assimilated American food, music, fashion, the educational system, government structures, business procedures, and legal processes.
Moreover, Filipinos, Americans, and other Westerners share the same social practices, customs, and expectations. These include religious beliefs (Catholicism and Christianity), holidays (Christmas and Easter), family togetherness, and multilingualism. So they can connect in no time.
With close cultural affinity and high English skills, Filipinos are generally at ease conversing with Westerners about various topics, from recreation and sports to business and politics. Cultural harmony gives staff outsourcing services in the Philippines a competitive edge.
Excellent Work Habits to Ensure High-Quality Output and Team Spirit
A business seeking staff outsourcing services in the Philippines is likely to acquire Filipino professionals with work traits that build and maintain productivity and performance. Below are some of their qualities:
- Resourceful and industrious. Most local workers are hardworking and treat their roles with accountability and enthusiasm. They often try to find ways to resolve work challenges.
- Dependable. Most Filipino professionals are reliable. Once settled in their jobs, they can complete assignments by themselves. They are also fast learners, passionate workers, active listeners, and team players.
- Optimistic. Filipinos generally view the positive side of life amid bad times due to their religious beliefs and family training. This attribute benefits companies interested in staff outsourcing services in the Philippines. They are composed, productive, and personable, no matter their circumstances.
- Hospitable. Being warm and friendly to foreigners, newcomers, and strangers is one of the Filipino workers’ strong suits. They are naturally curious about other people. Local professionals carry their hospitable nature to work, serving employers, clients, and customers as best as possible.
Flexibility to Various Work Setups to Deliver Constant Service
Companies can benefit from staff outsourcing services in the Philippines. Many Filipino professionals are amenable to job rotations, be it in human resources, customer service, accounting, bookkeeping, or technical support outsourcing.
Local workers are ready to work on changing work schedules—according to different time zones, on weekends, at night, and on holidays. Weekend work schedules and rotating shifts are acceptable employment practices in the local BPO sector.
The third-party team’s flexibility and willingness enable companies to run round-the-clock operations. For instance, in-house staff can handle the tasks during the day, while the third-party agents continue them at night. Customers and clients can contact and transact with businesses at any time.
Sufficient Inflow of Fresh, Tech-savvy Workers to Do Different Tasks
With staff outsourcing services in the Philippines, businesses are unlikely to experience an employee shortage anytime soon. Around 47 million Filipinos were in the labor force in 2021, with the labor force participation rate (LFPR) at roughly 64%. This means six out of 10 Filipinos are open to work.
Most in the labor force are millennials and Generation Z, aged 26 to 42. This indicates that when companies outsource tech solutions or customer service to the Philippines, they can access a supply of young talent adept in the latest technologies, computer systems, and social networks.
Advancing Internet Technology for Spotless and Clear Communication
The continued development of the Philippine internet infrastructure favors outsourcing businesses.
Philippine internet service providers (ISPs) offer users faster and more stable connectivity using satellite and fiber-optic technologies. Competition among the ISPs improved upload and download speeds on mobile and fixed broadband networks.
Additionally, the government helps advance the digital platform by simplifying bureaucratic procedures. Accordingly, ISPs can build and upgrade more cell sites to boost internet connections.
Possible Drawbacks of Staff Outsourcing Services in the Philippines
Potential issues might arise when outsourcing data entry services, tech support, or human resources to another country. These are:
- Unforeseen costs. A BPO company might bill client companies more than the agreed service fees. It might charge them for unexpected expenses, new services, or incidents, such as extra-legal activities, employee shortfall, contract cancellation or disputes, and staff termination. These factors typically take time to track and anticipate.
- Rising data threats. Outsourcing entails sharing confidential and sensitive client, company, and customer information with the third-party team. These might include credit card accounts, usernames, bank account details, and passwords. Weak system protection or negligence might result in data intrusions and financial losses.
- Less administrative control. Utilizing staff outsourcing services in the Philippines involves releasing some management oversight over the assigned tasks. Most of the time, the service provider uses its proven procedures and best practices to facilitate operations, enhance workflow, and maximize third-party team performance.
Tips for Hiring Staff Outsourcing Services in the Philippines
Consider the following pointers when outsourcing staff services to the Philippines:
- Identify objectives and needs. List down the goals for outsourcing staff functions. Ask these questions: Does the organization need more money, effort, and time spent on income-generating activities? Does it require outside help to improve workplace harmony and employee morale?
- Determine the type of activities to delegate. Service providers offer various outsourcing services. A company can turn over all the operations to them or work only on complicated activities to maximize outsourcing. It can also select specific activities that, when outsourced, can deliver the greatest benefits to attain the objectives.
- Remember the time zones. Defining the working hours that the third-party team will cover is vital. Accurate response time is important for outsourced processes. Organized work schedules between the third-party provider and the company can minimize confusion, misunderstanding, dissatisfaction, and delays.
- Ensure stringent data privacy and security. Staff outsourcing services in the Philippines mean transferring certain tasks to a service provider, including private information. Ensure the provider has robust security systems and protocols to protect data. Detailed privacy and security measures must be included in the service contract.
Choosing a Staff Outsourcing Service Provider in the Philippines
Check out the five must-haves to help select the ideal staff outsourcing partner.
- Appropriate size. A start-up or small company should consider picking a BPO partner that is the same size. Avoid selecting large-sized ones since a service provider at a similar level can prioritize its outsourcing requirements. A prominent BPO provider is likely to focus on major corporate accounts.
- Industry-specific expertise. Decide on a staff outsourcing partner with broad knowledge and experience in one’s industry. Delivery of solutions and services is better when the third-party provider is well-informed of industry-specific issues, trends, challenges, opportunities, and threats.
- Varied services. Seek a third-party company that can provide different services. Acquiring existing and future services is simple and more convenient from a single BPO company. Subcontracting many functions to two or more partners is more complex than depending on a single organization for all outsourcing needs.
- Great credentials. Choose a service provider with excellent credentials to get the right staff outsourcing services in the Philippines. Certifications, recognitions, industry memberships, and government awards indicate their credibility.
- World-class track record. Request verifiable references from prospective BPO partners. Check independent and impartial online reviews to learn more about their background and experience. Confidence is higher when working with a reputable BPO provider.
The Bottom Line
Staff outsourcing is a proven business practice when companies want to hire experts to enhance internal operations and help them with non-core tasks at reasonable costs.
When an organization decides to outsource, starting small is recommended. Hiring too many workers immediately might result in unexpected and costly problems. A small group helps a company learn the ins and outs of staff outsourcing and how third-party Filipino professionals do their work.
If you want to learn more about staff outsourcing services in the Philippines, let’s connect!
