offshoring

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Australian Companies Lean on Offshoring to the Philippines

Blog, Offshore Staffing, Offshoring in the Philippines / By

Australia’s economic landscape is shifting, and businesses are feeling the pinch. A recent report reveals that a staggering 70% of large Australian companies are implementing cost-cutting measures. This includes difficult decisions like layoffs and salary reductions, as they grapple with rising inflation, interest rate hikes, and global economic uncertainties. A significant consequence of this trend is the growing wave of offshoring, with over 20,000 jobs already moving overseas, particularly in telecommunications and financial services. Among the prime destinations for this shift, offshoring to the Philippines is gaining significant traction.

Why the Cost-Cutting Spree?

The economic pressures facing Australian businesses are multifaceted. Inflation continues to erode purchasing power, forcing companies to tighten their belts. Rising interest rates increase borrowing costs, impacting investment and expansion plans. Furthermore, global economic instability creates uncertainty, prompting businesses to adopt a more cautious approach. As reported by the Australian Financial Review, many companies are re-evaluating their operational costs and seeking ways to streamline processes to maintain profitability. 

The Rise of Offshoring: A Strategic Response

In this challenging environment, offshoring has emerged as a strategic solution for many Australian companies. By relocating certain business functions to countries with lower labour costs, businesses can significantly reduce their operating expenses. This allows them to maintain competitiveness while navigating economic headwinds.

Why Offshoring to the Philippines?

The Philippines has become a particularly attractive destination for Australian companies seeking to offshore their operations. Several factors contribute to this appeal:

  • Cost-Effectiveness: The Philippines offers a highly skilled workforce at significantly lower labour costs compared to Australia. This allows businesses to achieve substantial cost savings without compromising quality.
  • English Proficiency: English is widely spoken in the Philippines, facilitating seamless communication and collaboration. This is crucial for businesses seeking to maintain efficient operations.
  • Skilled Workforce: The Philippines boasts a large pool of highly educated and skilled professionals, particularly in areas like IT, customer service, and finance. This ensures that businesses can access the talent they need to support their operations.
  • Cultural Affinity: The Philippines has a strong cultural affinity with Australia, fostering smoother integration and collaboration.
  • Government Support: The Philippine government actively promotes foreign investment and provides various incentives to businesses seeking to establish operations in the country.
  • Time Zone Advantage: The time difference between the Philippines and Australia can be leveraged to provide 24/7 customer support and operational coverage.

Sectors Embracing Offshoring

The trend of offshoring to the Philippines is particularly prevalent in sectors like:

  • Telecommunications: Companies are offshoring customer service, technical support, and network operations to reduce costs and improve efficiency.
  • Financial Services: Banks and financial institutions are offshoring back-office operations, data processing, and customer support to streamline processes and reduce expenses.
  • IT Services: IT companies are offshoring software development, maintenance, and support to access skilled talent and reduce development costs.
  • Business Process Outsourcing (BPO): Many businesses are outsourcing administrative tasks, such as data entry, payroll, and accounting, to specialized BPO providers in the Philippines.

Related Article: How Filipino Expertise is Expanding Beyond Traditional Call Centres

Addressing Concerns and Ensuring Success

While offshoring offers significant benefits, businesses must address potential concerns to ensure success. These include:

  • Data Security: Implementing robust security measures to protect sensitive data is crucial.
  • Communication and Collaboration: Establishing clear communication channels and fostering effective collaboration between onshore and offshore teams is essential.
  • Quality Control: Implementing rigorous quality control processes to maintain service standards is vital.
  • Cultural Differences: Understanding and respecting cultural differences is crucial for building strong relationships with offshore teams.

The Future of Offshoring

As economic pressures persist, offshoring is likely to remain a key strategy for Australian companies seeking to reduce costs and maintain competitiveness. By carefully selecting offshore partners and implementing effective management practices, businesses can leverage the benefits of offshoring to navigate economic challenges and achieve sustainable growth.

Conclusion

In a climate of economic uncertainty, Australian companies are strategically turning to offshoring to the Philippines as a vital cost-cutting measure. The Philippines offers a unique blend of cost-effectiveness, skilled talent, and cultural compatibility, making it an ideal destination for businesses seeking to optimize their operations. As more companies embrace this trend, it is crucial to prioritize careful planning, effective management, and robust security measures to ensure successful outcomes.

Are you looking for efficient and cost-effective offshore staffing solutions tailored to your specific needs? Book a free discovery call today to learn how we can help you navigate the economic landscape and achieve your business goals. Let’s discuss how your business can benefit from offshoring to the Philippines.

outsourcing

The Top 11 Benefits of Outsourcing For Businesses

Blog, Outsourcing in the Philippines / By

Businesses today face a multitude of challenges, from rising costs and talent shortages to the ever-increasing need for innovation.  Outsourcing presents a strategic solution, offering a range of benefits to overcome these hurdles and propel your business forward.

This blog post explores the 11 key benefits of outsourcing for businesses, demonstrating how it can contribute to your overall success.

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The Top 11 Benefits of Outsourcing For BusinessesRead More »

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Outsourcing vs. Offshoring: Understanding the Key Differences and Benefits

Blog, Outsourcing / By

In today’s globalized business landscape, companies are constantly seeking ways to optimise their operations and reduce costs while maintaining efficiency. Two common strategies that have gained popularity are outsourcing and offshoring. While these terms are often used interchangeably, they represent distinct approaches to business expansion. In this blog, we’ll delve into the differences between outsourcing and offshoring, their respective benefits, and why Dynamic Business Outsourcing Solutions stands out as an ideal partner for outsourcing services in the Philippines.

Outsourcing vs. Offshoring: Key Differences

Outsourcing entails the delegation of particular business functions or processes to third-party service providers. These services can be sourced locally or internationally. Offshoring, on the other hand, refers to the relocation of entire business processes or operations to a foreign country. Here are the key differences between the two:

  • Scope of Operations: Outsourcing typically involves delegating specific tasks or processes, such as customer service, IT support, or accounting, to third-party vendors. Offshoring, meanwhile, entails relocating entire departments or functions, such as manufacturing or software development, to a foreign location.
  • Location of Service Providers: In outsourcing, service providers may operate locally or internationally, depending on the company’s preferences and cost considerations. Offshoring involves establishing operations in a different country to leverage lower labour costs or access specialized skills.
  • Control and Oversight: While companies retain control over outsourced functions, they may have limited oversight over the day-to-day operations of offshore facilities. Offshoring requires greater investment in infrastructure and management to ensure smooth operations across geographical boundaries.

Benefits of Outsourcing and Offshoring

Both outsourcing and offshoring offer several advantages for businesses:

  • Cost Savings: Outsourcing and offshoring can help companies reduce labour and operational costs significantly. By leveraging the lower labour costs in offshore locations like the Philippines, businesses can achieve substantial savings without compromising quality.
  • Access to Talent: Offshoring allows companies to tap into a global talent pool and access specialized skills that may be scarce or expensive locally. This enables businesses to scale their operations more efficiently and stay competitive.
  • Focus on Core Competencies: Outsourcing non-core functions allows companies to focus their resources and attention on core business activities, such as product development, marketing, and strategic planning. This can lead to increased productivity and innovation.

Statistics on Outsourcing and Offshoring

According to a recent survey by Deloitte, 59% of companies outsource to reduce costs, while 57% do so to focus on their core business. Additionally, the global outsourcing market is projected to reach $397.6 billion by 2025, driven by factors such as digital transformation and the need for operational efficiency.

Why Choose Dynamic Business Outsourcing Solutions

Dynamic Business Outsourcing Solutions (DBOS) is a leading provider of outsourcing services in the Philippines. With a team of highly skilled professionals and state-of-the-art facilities, we offer a wide range of outsourcing solutions tailored to meet the needs of businesses across various industries. Here’s why we’re the ideal partner for your outsourcing needs:

  • Cost-Effective Solutions: Our competitive pricing and flexible engagement models ensure that you get maximum value for your investment.
  • Access to Top Talent: With access to a vast pool of qualified professionals, we can help you find the right talent for your specific requirements, whether it’s customer support, back-office operations, or IT services.
  • Quality and Reliability: We are committed to delivering high-quality services and exceeding our clients’ expectations. Our robust quality assurance processes ensure that we consistently meet and surpass industry standards.
  • Strategic Location: The Philippines is a preferred destination for outsourcing due to its skilled workforce, English proficiency, and favourable business environment. By partnering with us, you can leverage these advantages to drive business growth and success.

In conclusion, outsourcing and offshoring offer compelling benefits for businesses seeking to optimize their operations and stay competitive in today’s global marketplace. By understanding the key differences between the two approaches and leveraging the right partner, such as Dynamic Business Outsourcing Solutions (DBOS), companies can unlock new opportunities for growth and success.

Contact us today to learn more about how we can help your business thrive through strategic outsourcing solutions in the Philippines.

Offshore Labour: Definition, Benefits and Drawbacks

Offshoring in the Philippines / By

The term “offshore labour” has gained significant public attention in today’s business landscape. And like most buzzwords, it’s easy to lose track of their meaning. Remote work, virtual staffing, and other terms, for example, have also become commonplace jargon that has similar yet not exactly the same meaning as offshore labour.  

What’s an Offshore Staff?

In its simplest form, offshore staffing is the practice of outsourcing everyday tasks and roles to workers living and working in another country. This can be done for various reasons, but the most common is to save on costs. Offshore staff are typically paid less than their counterparts in developed countries because the cost of living in their respective countries is often much less expensive.  

Offshore staffing is not a new concept; it has been around for a long time. Manufacturing, for example, has been outsourced for decades to countries like Vietnam, Bangladesh, and the Philippines. And as technology and skills advanced in these less developed countries, so did their ability to handle different types of outsourced work.  

These days offshore labour has spread to various industries, from manufacturing to back-office roles. Even critical tasks such as data analytics, engineering, and entire marketing departments are often outsourced to offshore labour.  

But, will hiring an offshore staff be good for your business? Let’s look at some key benefits and drawbacks to help you decide.  

Benefits of Hiring Offshore Labour  

Cost savings: One of the main reasons businesses choose to use offshore staff is cost savings. By hiring workers in a lower-cost location, companies can significantly reduce their overall labour costs.  

Access to skilled workers: In some cases, finding the skilled workers you need in your own country can be challenging because of the hard-nosed competition between companies. Offshore staffing provides access to a larger pool of talent. It allows you to hire the best workers for the job, regardless of location.  

Increased efficiency: Offshore staff can often work more efficiently as the teams are highly specialised and focused on a single task. In some cases, labour laws in their country may also allow them to work longer hours without much additional cost to the company. 

Drawbacks of Hiring Offshore Labour  

Language barriers: One of the challenges of offshore staffing is communication. A language barrier between you and your offshore staff can make it difficult to give clear instructions and get the results you need.  

Time differences: Another challenge of offshore staffing is time differences. If your offshore staff are in a different time zone, coordinating work hours and communicating in real-time can be difficult.   

Related article: Outsourcing To The Philippines: Managing The Timezone Differences

Cultural differences: Offshore staff may have different values and cultural norms than your own employees. This can lead to misunderstandings and conflict within your team.   

Final Thoughts: Is Offshore Labour for Your Business?  

The growth of the offshore outsourcing industry across the globe proves that it’s a sustainable way to scale businesses in developed countries. With an offshore staff, allocating resources to your most talented employees can be easier as more straightforward tasks can be outsourced to offshore labour. However, it’s essential to be wary of the cons, such as language and cultural barriers, as these can also lead to costly work disruptions.  

To be sure, before hiring an offshore team, try to get to know them first. A great way to do this is by conducting a video interview. This will give you a good sense of their language skills and whether or not they are a cultural fit for your company.   

Hopefully, we were able to help you in the decision-making process just by looking at the pros and cons we’ve laid out for you here. So, if you’re ready, then go ahead and give offshore staffing a try for your business. It may just be the boost you need to build momentum for your business this year! 

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5 Practical Tips To Successfully Build An Offshore Team

Offshoring in the Philippines / By

Offshoring offers companies a myriad of benefits especially now that a pandemic has made it become a common practice compared to a few years back when many companies didn’t see the need for it.

Some of the benefits associated with it include access to a vast pool of talents, the ability to cover multiple time zones, and more operating capital funds.

With technological advancements in the internet and communication software, offshoring has never been easier than now. However, there is the ever-present challenge of what to do to build the right offshore team for your company. In this article, we will look at five great tips on how to successfully build a committed offshore team that guarantees growth.

1. Screen for Reputable Outsourcing Companies

The first step in getting the best hands in is by hiring from the right outsourcing company. This involves collecting all the necessary information about shortlisted companies. It would also be a good practice to request for sample CV’s of their current employees. This way you can check the quality of talents they can acquire for you. 

Doing this can help you make a more informed decision and eliminate inconveniences resulting from negligent hiring. This will also ensure that only suitable and sustainable team members are brought in.

Related article: Key Factors to Consider Before Choosing an Outsourcing Partner

2. Explore Business Models

It makes sense to keep in mind factors like the cost of building an offshore team in mind. However, the competitiveness in the offshore industry ensures that you can find companies that offer their services at reasonable rates. 

Cost-effectiveness is what matters most in the recruitment process. It is crucial to find professionals who are ready to provide the best job at a price that works for you. 

Before making a hiring decision, ask about things like hidden budgets, unforeseen costs, quotes, and timelines. There are different billing models you can consider, which include hourly, monthly or dedicated resource models.

3. Go From Smaller Engagement

It always makes sense to start projects with a small engagement with the offshore team. This helps candidates become more familiar with your company a well as other team members. 

Keep communication simple by using common and understandable language statements to ensure everyone irrespective of the country they come from are in tandem.

Doing this will help you understand better the quality of work done, the skill proficiency of the workers, professionalism, work ethics, and the attitude of team members.

4. Share Your Business and Product Vision

A common mistake made by many business owners is randomly assigning tasks to a team of professionals who don’t understand what the company’s vision is and how to achieve it. This can create a problem of people not working as a team towards a particular aim.

As you work with an offshore team, make sure that all the members of the team understand your goals and what you are looking to achieve with the product or service you sell. Help them see the whole picture of your vision. It is now on them to optimise their process and make smarter choices as the project progresses.

5. Use The Right Tools & Documentation

To successfully build an offshore team, consider using managing and controlling your projects with tools like Teams, Asana and Favro. This enables you to monitor, share, and create project ideas for your online team.

You can easily track team members and see what projects they are working on per time. Also, these tools help you manage team workload and schedules. You can discuss and comment on tasks in real-time as projects are being completed.

Conclusion

When hiring remote workers for your offshore team, ensure you follow the aforementioned offshore tips to get the right people. Choose people who have similar passion and enthusiasm for the work like you to prevent having challenges while working together.

To create a wonderful working environment for your team, ensure that you are flexible and adaptable to them. Give them autonomy, inspire them, and consider their opinions in making company decisions. 

Building an offshore team can be challenging, but if done right with patience and the right strategies, you can earn the rewards of business success.

website

11 Things You Can Do to Your Website to Prepare for 2020

IT Outsourcing Services, Offshore Web Development / By

As the end of 2019 is getting near, company owners and leaders are starting to lay down their strategic plans for 2020. One of their main focus is on marketing efforts. For successful marketing to take place, checking the health of your website is essential.

Few months before the end of 2019, companies from different industries are preparing their marketing plans for the next year. One of them is the offshoring industry which remains as one of the most competitive income-generating fields in this generation.

As a vital part of your marketing efforts, refreshing your website and preparing it for the next year should be a must. Now, to further understand what and which comes first, here are 11 things that you can do to your website to push it into 2020.

website

#1.  Implement chatbots and live chat

Advances in technology will only become more prominent as the years pass by. In 2020, think-tanks are aiming to achieve better communication with clients and customers. With this, conversational marketing is highly anticipated. Also to avoid clogged chat boxes and other modes of communication, implementing the use of chatbots and live chats are a probable solution. At the very least, chatbots can answer common questions, qualify leads, set meetings and so much more.

#2. Measure your marketing

It is important to set up the right tracking software/analytics to see how well your website is doing before making any changes. It will also provide a plus point to your marketing if you can integrate visitor tracking and marketing automation.

#3. Become a video expert

Watching videos is a fast and convenient way to learn about something. For businesses, videos keep the audience longer on their websites, enabling them to know the brand better. So learning how to edit basic videos or doing it like a pro is going to be a trend next year.

#4. Focus on buyer problems, not product features

Always remember that the main purpose of a business is to serve its consumers. So instead of focusing on how to improve this and that service or product, hear what your client has to say first.

#5. Become a content machine

More than the quantity of any content, quality should always come first. So in 2020, quality content will be an important determinant of on how your website would do well.

#6. Focus on user experience

Continuously improving the user experience of your website to help your visitors navigate seamlessly is going to create a huge impact in 2020. Reduce your website’s friction and make sure to find a happy medium to effectively communicate with your users.

#7. Optimise for mobile

When it comes to optimising the website for mobile, the navigation experience is far more important than the design. Also, make sure to get right to the point instead of filling it with countless marketing content.

#8. Test your conversion points

Find out where specifically on your website does the users can convert from visitor to known contact. Sometimes, this includes pop up forms, chatbots, general forms, CTAs, and a lot more.

#9. Implement social media

Ensure that your social media icons are easily found on your website and utilise it for joining conversations on topics about your industry.

#10. Optimise your Google My Business

Make sure to regularly use your listing on Google My Business in 2020. Doing so will improve your local SEO as you are sharing information to the world’s largest search engine.

#11. Focus on context

Putting context on your website will make visitors feel more welcome which will bring your 2020 marketing plan to a new level.

Getting ready for your business growth in 2020 but not exactly sure how and where to start? Contact DBOS – a fast-growing Australian-owned offshore staffing company based in the Philippines. Know more about our services and get a free consultation with our very own CEO and Founder!