Outsourcing and Offshoring to the Philippines

 

Offshoring experts:  DiversifyISS are experts in assisting businesses establish their own offshore teams (also commonly referred to as outsourced staff, offshore outsourced staff, remote staff or BPO) in the Philippines. Learn More >

Benefits to business: The benefits of offshoring are many and include promoting growth without incurring massive overheads, operating 24/7/365 as well as achieving  increased value for your staffing dollar spend. Learn More >

Industry specialisation: DiversifyISS specialises in assisting businesses in the professional services and retail sectors with offshore staffing implementation, including strategy and planning.

Why the Philippines?: With 94% English literacy, 400,000 graduates each year and an average age of just 22 the reasons for choosing the Philippines as your offshoring destination are many. Learn More >

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Offshoring success - Selecting the right offshoring destination for your business

Saturday, Jan 30.

The business processing outsourcing (BPO) industry continues to grow rapidly. This growth has led countries in low cost jurisdictions to focus heavily on developing their BPO capabilities. As a result of this, many destinations across the globe have positioned themselves as high value offshore service providers, with the Philippines regarded as one of the top offshoring destinations in the world.

Jan30

Offshoring success - Selecting the right offshoring destination for your business

Saturday, Jan 30.

The business processing outsourcing (BPO) industry continues to grow rapidly. This growth has led countries in low cost jurisdictions to focus heavily on developing their BPO capabilities. As a result of this, many destinations across the globe have positioned themselves as high value offshore service providers, with the Philippines regarded as one of the top offshoring destinations in the world.

What do the experts say?

The recent AT Kearney’s Global Location Index places the Philippines in the top ten offshoring destinations in the world, especially strong in financial attractiveness and people skills and ability. If we then look at this more granularly, particularly in regards to actual locations, consulting firm Tholon’s 2015 report on the top 100 outsourcing destinations placed Metro Manila in second place overall.  

Looking at these results it can be established that the Philippines are a high quality offshoring destination, offering businesses the opportunity to develop and grow in an environment that is financially attractive with an exceptional talent pool to draw on.

How do I determine which area is suitable for me?

Selecting the right offshoring location is absolutely critical to achieving a successful outcome. As with any business decision, conducting your due diligence on each specific location is a must. Determining which part of the Philippines is right will come down to the specific goals and objectives of your business and then narrowing down the roles you are looking to offshore. 

As relative examples, it is common knowledge that that San Francisco is the hub for software development and start-ups, Silicon Valley the epicentre for technology and IT and, as an Australian based example, Sydney’s dominance in the marketing and advertising space. This same principle is applicable to the Philippines, some areas are better known for delivering specific outcomes in particular industries than others. Some areas are far cheaper and some costlier, and some regions have better access to specific talent pools than its neighbour may have.

To determine which areas are suitable for your business to offshore, ask yourself:

  • Do I need access to a highly skilled and motivated workforce?
  • Am I looking to offshore roles where competition for candidates is fierce?
  • Are the roles quite simple, easy and process driven?
  • Do I want to set-up a call centre or voice operation?
  • Is cost a major factor? The cheaper the better?
  • Do I value employee engagement and cultural integration?

I have an idea, where to now?

Let’s refer back to Tholon’s 2015 Survey again, if we scroll down the list of locations you will see (as mentioned) that Manila is in second spot. Unfortunately, the other offshoring locations in the Philippines do not fare so well:

  • Cebu – 8th 
  • Davao City – 69th 
  • Santa Rosa, Laguna – 82nd 
  • Baquio City – 95th 
  • Metro Clark – 98th 

There are a variety of reasons as to why selecting Manila as your offshoring destination in the Philippines is the smart option. The disparity in the above results stems down to the value and quality that Manila does offer over competitor regions. 

A few of the key reasons include:

  • It is the capital city of the Philippines where both large and small companies from other countries have established their businesses 
  • Metro Manila (NCR) is considered the nation’s gateway to the world.
  • It is considered the pioneer for the BPO industry making it a prime spot for outsourcing solutions. 
  • The latest technology is initially released here so business owners who are planning to offshore can expect that Information technology here is more aligned to global standards and it is up to date to deliver their requirements more efficiently. 
  • Access to a larger, higher quality talent pool
  • Far better resources, infrastructure and technology
  • Easy access for staff

Selection should be based on ideal outcomes

As an organization quality outcomes are reliant on quality processes and resources. The alternative locations available can be viable options if you are looking to implement an offshore solution that is totally centered on cost savings, or the offshoring of low skilled and high volume work. As an example, if your business is looking to roll out a large call center operation then it may be worthwhile considering Clarke or Cebu as the location. 

A recent BPAP report stated that:  “the current outsourcing activity in the locations is small compared to that of Metro Manila. Stand-alone suppliers in these cities are low on service maturity, having to make do with employees who have no significant experience and insufficient infrastructure.” 

If a business’s drivers, towards an offshore implementation, are cost, access to low skilled, unsophisticated functions or setup of large voice accounts then areas out of Metro-Manila should be considered.

However, if your business is looking to offshore key functions that require high quality candidates with practical experience and a solid understanding of working with high performance organisations, Metro-Manila should be at the top of the list

Diversify ISS is a high quality provider of offshore staff solutions located in the heart of Manila. Our high class location, excellent facilities and focus on staff engagement have positioned us as one of the leading offshore service providers in the Philippines. Click here to have a look at our facilities and location.

Key takeaways 

  • Location is critical – make sure you choose a location that reflects your business objectives
  • Different regions in the Philippines have different connotations – some bad, some good
  • Manila is considered the premier offshoring location in the Philippines – it provides access to the best candidate pool
  • Other regions may be cheaper – this is at the expense of service, employee engagement and ease of access
  • If you are looking for a sophisticated multi-function offshoring implementation then Manila should be the only place you consider

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Picking the right offshoring provider – bigger may not always be better

Friday, Jan 15.

When you are looking to select the right offshoring service provider to partner with, one of the main initial considerations is the type of work you will offshore.

There are two main types of work that are offshored to the Philippines and they have very different needs both in terms of the physical premises to accommodate the type of work and the best approach to staff management. These work types are essentially voice and non-voice (or back office).

Jan15

Picking the right offshoring provider – bigger may not always be better

Friday, Jan 15.

When you are looking to select the right offshoring service provider to partner with, one of the main initial considerations is the type of work you will offshore.

There are two main types of work that are offshored to the Philippines and they have very different needs both in terms of the physical premises to accommodate the type of work and the best approach to staff management. These work types are essentially voice and non-voice (or back office).

However, if you are looking to set up a large voice team then the issues to consider include:

  • Location of facility – it may be better to have this team based outside of Manila as this will both reduce the costs and staff turnover. There are many opportunities for voice work in the capital city and it is definitely an employees market – moving to a regional area may tilt this market supply more in favour of the employer
  • Excellent IT facilities and ISPs – obviously this will form the back bone of your operation
  • Training facilities – you will need dedicated areas for the ongoing training needs for your staff 

If on the other hand you are looking to establish a non-voice back office operation, then probably the number one rule is to make sure that you pick a provider that does not offer voice operations or knows how to solidly handle the voice accounts from the non-voice. Some of the reasons include:

  • The high staff turnover rates experienced by voice accounts undermines staff culture, morale and retention
  • The physical set up for a voice account is different – smaller work stations, segregated areas and large training rooms are just some of the requirements for a voice account which are significantly different to what is required for back office operations.
  • Providers providing voice facilities will usually make most of their money from this as the accounts are often very large with hundreds of staff per client – as a result small non-voice accounts are unlikely to receive the priority or service levels they expect.

 

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Christmas 2015 at Diversify ISS

Friday, Dec 11.

It has been a fast paced end to the year at Diversify ISS! Since coming on board a few months ago I have quickly become a part of the Diversify ISS family. In my last piece I discussed the importance of enjoying what you do for a living; after all you do spend 60% of your life at work! One of things I that struck me in my new role with Diversify ISS was the time and effort placed on ensuring that we all look forward to coming in to the office each day.

Dec11

Christmas 2015 at Diversify ISS

Friday, Dec 11.

It has been a fast paced end to the year at Diversify ISS! Since coming on board a few months ago I have quickly become a part of the Diversify ISS family. In my last piece I discussed the importance of enjoying what you do for a living; after all you do spend 60% of your life at work! One of things I that struck me in my new role with Diversify ISS was the time and effort placed on ensuring that we all look forward to coming in to the office each day.

Staying connected and engaged both with our clients as well as our colleagues are key factors in delivering the highest quality customer service whilst building a collaborative, creative, productive and enjoyable environment. In order to foster this working environment the team at Diversify ISS hosts a number of key staff events throughout the year.  The first of these I attended was the Halloween party which was awesome (check out my account of this event here). The bar was set so high at the Halloween event that all of us could not wait for the Christmas party, which was promising to be an even grander affair!

 

     

 
 

    Diversify Christmas Party 2015 Staff     Diversify Christmas Party 2015 Manila Staff

 

Two words come to mind when describing the 2015 Diversify ISS End of year Party: absolutely incredible! The theme for the evening was GLOW. Walking into the venue we were immediately struck by the black light and neon glow of the Century City Mall, Events place. The scene was set for an evening of bright lights, neon glows and glow in the dark clothing and accessories. Before we settled into a night of partying and celebration Angela Vidler, CEO of Diversify ISS provided a quick speech thanking all of the Diversify ISS family's efforts and commending us all on the exceptional work delivered to our valued clients throughout the year. Of note was the reference to how the business could not have grown so significantly without the efforts of every team member! This was an event to thank us for another great year and to motivate us all for the year ahead. 

Once the formal part of the evening was completed we were privileged to witness an upbeat and entertaining glow in the dark dance special performed by the operations team. I must say that it was hilarious to see our support team dancing in their glow in the dark outfits. Once we had stopped laughing and cheering the entire team settled into a buffet dinner and a few drinks waiting in anticipation for the Glow Dance Contest. The content comprised of three teams dancing off for a chance to win 25,000PHP.

The teams all adopted unique styles of dance which are too hilarious to describe!

For all the staff members that weren’t involved in the dance competition there was still an opportunity to win in the raffle (with some great prizes). The prizes included; a 50 inch TV; an Acer Touchscreen laptop; and a Play Station 4.

 

Diversify Christmas Party 2015 Manila

 
 

It was a great evening that really rewarded us all for a great years work. Being able to celebrate with my fellow team members in such a great environment really is a testament to the amount of time and effort that Diversify ISS places on ensuring that we all truly enjoy being part of the Diversify ISS family.

We look forward to continuing to deliver the highest quality outcomes to our clients in 2016 and thank you all for the opportunity to work with you.

 

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