As a business owner or executive in Australia, you always seek ways to enhance efficiency, profitability, and growth.

Outsourcing to the Philippines is often seen as a way to achieve an instant fix to wage expenses. Still, the benefits of outsourcing to the Philippines go far deeper than that.

Here are the 15 compelling reasons to consider outsourcing to the Philippines beyond the 50-70% direct wage savings

Employee Satisfaction and Retention of Australian Staff

Delegating mundane or repetitive tasks to your offshore team can improve job satisfaction for your onshore staff in Australia. You can re-design their job descriptions so that their work is more rewarding and fulfilling. The wage savings can be redirected to provide additional staff benefits or even salary increases to key team members in Australia, enhancing morale and retention.

In addition, delegating the responsibility to lead offshore staff members can be a highly rewarding and engagement opportunity for your Australian staff as well. They will have a sense of ownership for the success of the person in the Philippines, and it will open their eyes to a whole other culture.

Comprehensive List of Inclusions

Offshore outsourcing services include office space, equipment, internet, government benefits, leave entitlements, and engagement activities. Your outsourcing partner will also manage HR and payroll for your offshore team. This can reduce the workload on your existing HR and finance team, allowing them to focus on more strategic, value-added work. In some cases, you may even eliminate the need for an onshore HR and payroll team altogether.

When we talk about office space, we are talking about state-of-the-art office facilities with both physical and biometric security and outstanding staff facilities. The outsourcing partners that we work with have your business security in mind too. They will be PCI DSS compliant and many will be certified with ISO 27001:2013 and ISO 9001:2015 for information management practices. 

Hassle-Free Recruitment

After an initial calibration session, your outsourcing partner fully manages the recruitment process for offshore staff. From job ad creation to applicant screening and aptitude testing, you only get involved when they have found candidates who meet your requirements to make the final interview and hiring decision. It is, without a doubt, one of the easiest ways to cherry-pick the best offshore talent from hundreds of applicants.

Different Gears of Operational Management

You can choose your level of involvement in daily operations of your offshore team. Outsourcing companies can provide dedicated or shared Team Leaders or Operations Managers to oversee the productivity and performance of your offshore team to agreed KPIs, leaving you to focus on the bigger picture with your business.

Alternatively, you can have complete control and oversight of daily operations and have the staff report directly to one of your onshore staff, or in some cases, for larger businesses, an expat based full-time in the Philippines to embed your company culture and embed best practices.

Stonger Cash Flow

Benefit from favourable payment terms to improve your cash flow. Payment of invoices for outsourcing services in arrears can increase your business’ working capital. Alternatively, you may negotiate discounted rates by paying an invoice in advance, thus amplifying the cost savings. Choose the option that works best for your business.

Improved Credit Rating & Lower Your Business Interest Rates

Most businesses will have some form of Bank financing, whether it be a business overdraft for working capital, vehicle and equipment leasing or a term loan for their business premises. The interest rate charged by financiers is often linked to your “Credit Grade” or “Credit Score”. You can boost your business’s credit grade by improving profitability metrics such as Net Profit Before Tax (NPBT) and EBITDA (Earnings Before Interest, Taxation, Depreciation and Amortisation) and building a stronger balance sheet.

You can improve these metrics by reducing costs and increasing profitability. As a result, you can secure a lower interest rate on your business loan facilities the next time you apply or have a review completed, amplifying the financial benefits of outsourcing to the Philippines even more.

Access to Global Talent & Development Programs

With a critical skills shortage in Australia and escalating wage pressures, businesses must look offshore to secure essential talent. You can outsource various roles, from the basic, like administrative support, customer service agents, and debt collection agents, to the complex, like full-stack developers, data scientists, and business analysts. There isn’t a single industry that can’t benefit from outsourcing and protect itself from the risk of not having suitably qualified staff to implement day-to-day operations.

Philippines Outsourcing companies will also have their own employee development programs so your staff members continually improve their capabilities. From basic skills training in specific software programs, to soft skills, industry certifications and leadership development, every opportunity exists for your outsourced staff member to grow professionally – and your business will get the benefits.

Scalable Solutions

Outsourcing with reputable companies offers a scalable employment solution for rapid growth and seasonal demand. With an extensive sourcing and recruitment team, outsourcing companies can quickly tap the market or their existing job seeker pool to find staff for new business strategies, product releases or organic growth.

Low Exit Costs & Flexibility

Due to the highly competitive landscape, outsourcing companies in the Philippines offer favourable commercial terms. Enjoy low exit costs if you need to downsize or discontinue your offshore strategy. You can generally exit with 30-90 days’ notice. Outsourcing companies must deliver outstanding service and value to retain you as a client and this can give you a lot of comfort as a business owner.

Executive Expertise and Business Connections

When you become a client of an outsourcing company in the Philippines, you will have access to executives and senior managers who provide valuable expertise and business connections. Typically, they will have worked with clients from around the world across many industry verticals. They will have experience with or have clients who use the world’s leading technology platforms – from CRMs to telephony systems.

Beyond that, they could introduce you to other clients where there may be some business synergies or commercial opportunities, opening doors that would not have existed for you otherwise. Outsourcing to the Philippines delivers this incredible benefit, which is not often discussed.

Fresh Perspectives

Offshore staff in the Philippines generally have diverse experience in global organisations and can bring valuable insights and fresh ideas to your business.

You may find staff who have worked with some of your competitors or worked for a similar business in a different country like the USA. You can tap into their knowledge and experience to see what you can learn and apply in your business.

In addition, being from a different country and culture, your staff in the Philippines may look at problems slightly differently, leading to new ideas for solving problems or innovating.

Travel Opportunities

Offering travel opportunities to your Australian staff is a great way to increase engagement and retain your best people. Not only will they get a unique business and personal experience, but the value they can add to your offshore team is immense. From training offshore staff to helping embed your company’s culture and values, it is always a positive experience for everyone. Filipino staff absolutely love client visits, and it builds an even stronger connection and level of loyalty.

At the Australian Outsourcing Broker, we offer outsourcing business tours to the Philippines so you can get a taste of the Philippines outsourcing industry and the country in general. If you are unsure whether outsourcing to the Philippines is the right strategy for you, we highly encourage you to participate in one of our two or three day tours. It will be one of the more worthwhile things you do personally and for your business. 

Access Latest Technologies

Outsourcing to the Philippines allows you to access bespoke or best-in-class technologies like RPA (Robotic Process Automation) and AI (Artificial Intelligence) more easily. Any serious outsourcing company in the Philippines is investing heavily in this space to provide AI solutions to business operations and people with the necessary AI expertise to work in your business.

Business Continuity Planning (BCP)

Outsourcing provides an exceptional BCP strategy, ensuring your operations continue smoothly in case of disruptions in Australia. Outsourcing companies in the Philippines have multiple levels of redundancy to ensure they have 100% up-time.

Community Impact

Outsourcing to the Philippines creates a new job for someone and improves their life and their family’s lives. This has been the most rewarding aspect of our involvement in the outsourcing industry – to see the positive impact our work has on people. 

People in the Philippines often get by much less than we do in Australia. Working for an Australian company through an outsourcing company is highly sought after in the Philippines as it allows them to work a day shift and lead an everyday life with their family (US companies need night shift workers in the Philippines).

In addition, working in the outsourcing industry is a well-paid career for people in the Philippines. The salary they earn, whilst modest by Australian standards, has a huge and positive impact on their family’s financial future. Working for an outsourcing company also comes with medical coverage for them and their family (and sometimes parents).

The outsourcing companies themselves do a lot of community engagement and have impactful programs that make a real difference to local communities around their offices. By outsourcing, you will be a part of something that brings a lot of good to many people.

Australian Outsourcing Broker CEO Andrew Carruthers supporting the He Cares Mission for look after homeless children in Quezon City during his time outsourcing to the Philippines

Australian Outsourcing Broker CEO Andrew Carruthers spending time at the He Cares Mission, an organisation that provides support and education to homeless children in Quezon City, Manila. 

Let us help you get started

In a nutshell, we strongly believe that every business should try to outsource at least one role to the Philippines to experience the benefits firsthand. There is very little to lose, but the upside is significant and will be a game changer for many businesses.

The Australian Outsourcing Broker is here to guide you every step of the way when it comes to outsourcing to the Philippines. From vendor selection to staff hiring and operational implementation, you can lean on our decades of experience to make the process as simple and effective as possible.

Contact us today at info@australianoutsourcingbroker.au or book a consultant with our CEO, Andrew Carruthers, here.

Leave a Reply

Your email address will not be published. Required fields are marked *

This field is required.

This field is required.