Why Outsource Part of your Business ?

By Maria Claudette Manus, VP Business Development

Businesses are now increasing their investments in outsourced services and for other companies increasing their use on global shared services especially on IT and business process (software development, embedded system design, drafting services, accounting, customer service).

 

The main reasons why companies outsource or sub-contract to a third party service provider are:

  • HR – related expenses. It eliminates sourcing and recruitment costs, saves time in dealing with payroll and benefits, eliminates non-productive employee time (breaks, training, and tardiness), and removes the time and hidden costs of managing staff – discipline, appraisals, and etc.
  • No software maintenance and support
  • Overhead cost reduction since outsourcing frees up office space and reduces use of facilities.

In Tholon’s 2016 report on Top Outsourcing Countries, Philippines belongs to the top 10, with Cebu(Philippines) bagging 7th spot.  As an outsourcing hub, Cebu is ideal for the following reasons:

  • 1. Language. English is the second language and Filipinos has a neutral accent. About 75% can read and understand English and about 47% are comfortable in speaking English.
  • 2. Labor Cost. Costs are lower in the Philippines compared to onshore labor cost of countries with outsourcing needs.
  • 3. Highly skilled and available work force. We have a high literacy rate of 97.5% according to the National Statistics Office.
  • 4. Economic zones are available that grants income tax holidays of at least 4 years.

 

Be competitive in the market. Increase your margins.  Think about outsourcing.

Visit our websites www.auksilyo.com and www.serviampro.com for more information. Both companies are located in Cebu, Philippines.

 

About the Author. Maria Claudette Manus is the business development manager of Auksilyo Professionals, Inc. and Serviam Professionals, Inc. She has helped several international companies set up their offshore businesses in Cebu, Philippines.

 

COMMENTS (2)
Reply

When you outsource, you can focus your time, attention and resources on your company s core competencies–and spend your time setting new goals and finding ways to achieve them.

Reply

The most important step a business owner can take to protect his data is to only provide the outsourced service provider with the absolute minimum data necessary for the provider to do its work, Gossels says.

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