Offshore outsourcing is among the most popular management practices today. Common knowledge as it is that outsourcing is spurred by cost reduction factor, the Philippines not only offer cost effective solutions and it also guarantee improved productivity and quality of services. Outsourcing is the sign of time and the current trend. It is now understood and in fact, advocated and used by nearly the whole world through. But what really is outsourcing? Is it simply delegating works to others so you could be free of some tasks? Or is it as ordinary as hiring somebody else to work for you?
Outsourcing, defined in wikipidea as subcontracting a process, such as a product design or manufacturing, to a third party became part of the business lexicon during the 1980’s. It has since become synonymous to shifting locations or simply relocating – western jobs heading to the Philippines and other countries where labor and production cost are lower.
But why consider the Philippines? As stated earlier, the Philippines offer cost effective solutions. It is one of the world’s largest pools of intellectuals, highly educated, professionally skilled, English-speaking workers. Statistics reveal 93.9% in literacy rate, putting the country among the highest in rank in the United Nation’s Program Report in 2005.
Outsourcing to the Philippines is not all about benefiting low cost of doing business, minimal labor costs and very affordable production costs. It is more than getting things off the chest of business men, non-core activities they would rather dump to a professionally skilled individual so they could have the freedom to focus on their core activities. Outsourcing to the Philippines is about quality and value addition at a reduced cost.
The gist behind outsource mushrooming is that it provides an option for getting highly productive manpower at a cheaper rate. It is a cost-efficient operation where businessmen are freed from additional responsibilities and given option to focus on the core of their business.
