Outsourcing and offshoring are terms that are often used interchangeably, leading to confusion. In this article, we will explore the difference between outsourcing and offshoring, specifically in the context of the Philippines. We will delve into the key points to help you fully understand these concepts.
Outsourcing and offshoring both involve finding another party to do work for your company. However, there are distinct differences between the two.
Outsourcing: Working with Another Company
Outsourcing can occur anywhere in the world, including within the same country or overseas. When you outsource, you hire another company to fill roles within your business. For example, if your business needs additional call center staff, you can hire an outsourcing company to provide these employees.
The outsourced staff are employed by the outsourcing company, and they follow the systems, protocols, and work ethics of that company. While they answer your phones professionally, they adhere to the processes and procedures set by the outsourcing company. The productivity of the outsourcing company is measured by how quickly they resolve issues and how many calls they can handle.
Essentially, when you outsource, you fit into the mold of another company. You relinquish a certain level of control as you operate within their established framework. This can be compared to the frustrating experience of dealing with a telecommunications company, where you are passed around different departments and struggle to find a resolution.
Offshoring: Working with Your Own Team
In contrast, offshoring refers to hiring staff overseas or offshore locations, such as the Philippines. Offshoring is sometimes referred to as BPO (Business Process Outsourcing) or staffing solutions. It is important to note that the individuals hired for offshoring are real people, not chatbots.
When you choose to offshore, you have more control over the processes, procedures, and work culture. The offshoring partner leases staff who work for your business. These employees follow your specific procedures, work ethics, and policies. You dictate how tasks should be done, and they become an integral part of your business culture.
Your offshoring staff work according to your KPIs (Key Performance Indicators) and job descriptions. They report to you and your team, and they use your systems and tools. The work is done according to your preferences and requirements. Unlike outsourcing, where you conform to the protocols of another company, offshoring empowers you to work in a way that aligns with your business goals.
Benefits of Offshoring
By offshoring to the Philippines, you can enjoy several benefits. Here are some key advantages:
Cost Savings: Offshoring to the Philippines allows you to access a highly skilled workforce at a significantly lower cost compared to hiring locally.
Scalability: With offshoring, you have the flexibility to scale your team up or down based on your business needs. This eliminates the challenges of hiring and firing in-house staff.
Cultural Alignment: The Philippines has a strong cultural affinity with Western countries, making it easier to integrate offshoring staff into your business.
Time Zone Advantage: When you partner with an offshoring company in the Philippines, you can take advantage of the time zone difference. Your offshoring team can cover tasks and provide support during your normal business hours.
Increased Productivity: By offshoring repetitive or time-consuming tasks, you can free up your local team to focus on core business activities, leading to increased overall productivity.
Offshoring to the Philippines: A Strategic Choice
Offshoring to the Philippines is a strategic choice that empowers you to build your own team, tailor the work processes to your liking, and benefit from a cost-effective solution. By leveraging the skills and dedication of Filipino professionals, you can unlock new opportunities for growth and success.
In conclusion, outsourcing and offshoring are two distinct approaches to delegating work to external parties. While outsourcing involves integrating into the systems of another company, offshoring allows you to establish your own team and work according to your own rules. Offshoring to the Philippines offers significant advantages in terms of cost savings, scalability, cultural alignment, and increased productivity. By making an informed decision about whether to outsource or offshore, you can set your business up for long-term success.
Remember, offshoring is not just virtual assistance; it involves real people who become an extension of your office in the Philippines. Choose offshoring to harness the talent and potential of the Philippine workforce and supercharge your business growth.