Outsourcing Philippines: The top 3 success factors
Offshore outsourcing to the Philippines is a great business strategy that can be a game changer for any company regardless of size or industry. Some of the benefits include significant cost savings, 24/7 uptime, increased workflow efficiency, and access to specialized expertise. However, it also can come with certain risks that need to be managed, which require a commitment of time and resources. Outsourcing is only successful if it’s a true partnership between the client and the outsourcing provider in the Philippines. To work, there are three mission-critical components to a successful, long-term partnership.
The first key is to find the right-sized outsourcing provider with the right industry and service specialization. Outsourcing companies have different strengths and weaknesses, so it’s important that an outsourcing service buyer looks for a partner that is the best fit for their specific business requirements. The desired attributes of an outsourcing provider in the Philippines include a strong business process experience, good relationship management, and an established quality system.
“Partnering with an outsourcing provider with deep domain expertise may cost slightly more, but what a buyer is paying for is industry and/or service experience. Contrast this with choosing a low-cost provider that operates as a jack of all trades, master of none, and it becomes clear the value of working with a vendor that understands your business,” says Ralf Ellspermann, CEO of PITON-Global, an award-winning outsourcing provider in the Philippines.
The second key factor is to clearly define the outsourcing requirements and business objectives. This should be clearly outlined and part of the service agreement between the client and the outsourcing provider. Prior to entering an agreement with an outsourcing vendor in the Philippines, companies need to form a very clear idea of what their specific goals and needs will be, such as whether they want to focus on immediate cost savings or long-term synergies and shareholder value.
Once this has been done, it’s then important that these objectives be laid out in the service agreement to ensure that both parties have a clear understanding of what they are responsible for and what the client expects from them. An important part of this will entail agreeing on all communication channels. How will you communicate? Via phone, email, video conference, onsite, etc., and how regularly will those check-ins be, i.e., daily, weekly, or monthly? What aspects of the partnership will be discussed during these meetings? Program performance and macro-level business reviews will be critical to ensure that all KPIs are met.
The third key factor is to focus on quality and providing a great customer experience. Many decision-makers are hyper-focused on cost-containment. Cost is an important factor, but not many companies understand that outsourcing isn’t just about cost savings, but also about focusing on providing a great customer experience (CX) and maintaining high-quality standards.
“To achieve this, it’s critical that outsourcing buyers stay involved in all aspects of the outsourcing relationship. This includes all business-related processes such as recruitment, training, onboarding, coaching, program co-management. Partnering with an outsourcing provider in the Philippines is an extension of your business and must be treated and managed as such,” explains Ellspermann.
Outsourcing to the Philippines is a great way to simplify processes and eliminate redundancies in an organization. Though at times there are many risks involved in choosing the right outsourcing partner, if you follow the three key factors of outsourcing, you can place yourself on track to a successful outsourcing partnership.
“A well-planned and executed outsourcing strategy with the right outsourcing provider will always provide a more competitive edge. Working with a company that specializes in your industry will improve operating efficiencies and enhance CX, which will ultimately lead to increased revenues and profitability.
Companies are well-advised to focus on the long-term value that outsourcing to the Philippines can provide instead of short-term cost-savings. There will always be cost-savings due to increased operating efficiencies and a lower hourly rate than onshore, but they should be seen as a welcome byproduct and not the main or sole reason for outsourcing to the Philippines,” says Ellspermann.
Subscribe to our business newsletter
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.