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Philippines Outsource: What Incentives Compel Companies to Outsource Business Operations?

The increasing rate of business outsourcing is not in vain, there must be some incentives that compel companies to outsource some or all of their business functions. Philippines outsource contract is a popular trend. Most businesses prefer to use renowned offshore outsourcing destinations in achieving their business outsourcing needs.

Outsourcing is simply a strategic use of external resources (especially humans along with their material resources) to perform organizational activities that could as well be handled in-house. By embarking on outsourcing, a company contracts out its essential functions to service providers who are specialized, as well as effective in carrying out the contracted functions.

What Compels Companies to Outsource?

Basically, the following incentives compel companies of various sizes and types to outsource their major functions;

• Lower and controlled business operating costs
• Opportunity to access world class expertise and capabilities
• Company’s focus enhancement
• Speeding up turnaround time for process performances
• Maximizing the benefits of the World Wide Web and the internet as a whole
• Sharing the organization’s potential risks with another company
• Internal fund constraint

Initially, the driving force to embark on outsourcing (whether Philippine outsource services or other offshore outsourcing destinations) is cost reduction. However, the reason for outsourcing has metamorphosed to more strategic benefits such as overall improved efficiency in running an organization. Also, outsourcing provides a platform for a company to re-direct its efforts and resources to the core in-house activities that add extra value to the corporate image.

However, successful outsourcing is necessary for maximizing all the benefits inherent in outsourcing. Thus, there are major factors that influence successful outsourcing, they include the following;

• A company that intends to hire Philippines outsource services or other offshore destination outsource services must understand its goals and objectives first.
• Selection of the right outsourcing vendor is highly essential
• A strategic plan and vision is required
• An outsourcing contract must be structured properly
• The parties involved must engage in open communication
• The support and involvement of the senior executives is necessary.

So, achieving outstanding success with outsourcing requires putting the necessary contractual infrastructures in place. First, a company must examine its objectives and goals critically in order to adopt the most suitable outsourcing strategy.

Then, thorough research is required to select the right Philippines outsource vendor or provider from other locations. Specialization in the business area that needs outsourcing is something a company should pay close attention to when hiring an outsourcing vendor.

A company should not completely leave the strategizing to the outsourcing provider, it should have its own strategic plan and vision, so that performance quality can be measured in the light of the vision and plan.

Subsequently, stunning result will accrue from business outsourcing decision. 

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 http://www.123Employee.com


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