Strategic Reasons Why Businesses Should Consider Offshoring to the Philippines
Offshoring is another word for moving a business process or operation to a different country. This is typically intended to take advantage of the lower costs or availability of skills. Such a method may or may not involve a third-party company. But you should not confuse the term with outsourcing because they have different perspectives.
How Offshoring Provides an Advantage to Business
The main advantage of offshoring is that it can provide lower labour costs, particularly in destinations like the Philippines, India, and Vietnam. Other developed countries may cost more, making offshoring to said destinations more ideal. Basically, it can reduce the expenses for office space, utilities, and other operational overhead.
In addition, this can help businesses to gain access to skilled professionals in different fields of expertise, which may not be available or may be more costly locally. Some companies may take advantage of time zone differences that can facilitate the operations 24/7, particularly for customer service or IT support. So, projects can still go on during the downtime of the local team, which speeds up the delivery.
Another impact of offshoring is market expansion, which enables businesses to establish a presence in new markets, build brand recognition, and understand local customers. At the same time, offshoring can delegate non-core tasks to the offshore teams that will enable the business to focus on growth and strategy. It also makes businesses more flexible to scale operations up or down based on the demand even without making significant investments.
Who Can Benefit More from Offshoring
Those businesses with large-scale operations can benefit from offshoring if they are targeting cost efficiency. This is particularly the case when it comes to manufacturing, customer support, and IT development, which often is costly locally. Another possibility is when a company is looking to enter or establish an international market presence.
Although this may be a game-changer for businesses aiming to cut costs, scale operations, and tap into global expertise, it still requires careful planning and understanding of what lies ahead. That is because it is not a one-size-fits-all solution, so it is still important to evaluate the needs and risks involved before adopting this option.
How to Begin Offshoring to the Philippines
Offshoring Philippines is a brilliant move, but you need to have a strategy to maximise benefits and minimise potential challenges. Thus, you should first identify the tasks involved or determine which processes are ideal for offshoring.
At the same time, you need to understand how the Philippines can benefit your decision to operate overseas. Note that the country offers lower wages compared to Western countries without compromising the quality of service. It also has a skilled workforce and has one of the highest English proficiency rates in Asia.
Moreover, the Filipino people are already familiar with Western business practices. That said, the Philippine government is keen on promoting and supporting the business process outsourcing industry in the country. So, all this can help you boost your operations or services when you consider offshoring to the Philippines.
