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Offshore Outsourcing in the Philippines

Offshore Outsourcing In The Philippines

Offshore outsourcing in the Philippines has been a recent trend and it is estimated that for every six jobs outsourced, only one job is actually created locally. This means that outsourcing companies utilize mostly foreign labour to complete their work, making offshore outsourcing better named as 'offshoring'.

The offshore outsourcing industry in the Philippines began in 2005 with its first major contract signing between Australian firm Navitas, India's Tata Consultancy Services (TCS) and Virtual I Technologies, Inc. of the Philippines. The deal called for Virtual I to provide application development services for Navitas operations in Australia, New Zealand, Hong Kong and China -- all areas of high demand for IT professionals. 

In this article, we’re going to talk about offshore outsourcing and why Offshore Outsourcing to the Philippines is the best decision for businesses.

But first, let’s talk about offshore outsourcing.

What is offshore outsourcing?

Offshore outsourcing is the practice of hiring a third-party firm to perform some business functions that could be completed in-house. A company will outsource when it chooses to delegate a function that can be performed more effectively and/or efficiently by an outside firm.

This process helps organizations reduce costs and improve operational efficiency. This is often done with the help of IT offshore outsourcing Philippines, HR outsourcing Philippines, or BPO outsourcing.

Why would you want to outsource your work?

The Philippines is one of the biggest outsourcing destinations for several reasons. The first reason is that English is taught at the primary school level in the Philippines. Since English proficiency can be considered as one of the benchmarks when it comes to customer service, this makes Filipinos highly competitive compared to their neighbouring countries.

Another reason why outsourcing companies prefer Filipino talents is because of work ethic. If you will look closely into Philippine culture, you will find there's a high value on service-orientation and appreciation of others' efforts than on competition - this can already be seen through its close family-style relationship where unity and togetherness are stressed upon greatly more than individualism. This also reinforces why Filipinos work well with people who come from different cultural backgrounds.

So with these reasons, you can see why outsourcing companies would want to have their offshore development teams in the Philippines.

But if you think that outsourcing is just a financial decision, then you will be wrong. There are more benefits to outsourcing than saving expenses and getting quality work at rates that are way too affordable compared to hiring full-time employees locally.


Offshore outsourcing is done by many large corporations who have realized the benefits of hiring workers in other countries because they can make their products or deliver their services for less money. What is now called offshore outsourcing began with American companies sending data entry projects overseas where people typed numbers into spreadsheets all day long using an English-based language system. This type of work does not require much education, but it does require someone with excellent typing skills and accuracy as well as knowledge of Microsoft Office software programs.

Even though this may sound like a boring job, there are many people around the world who would love to have such a job simply because it provides them with something that is almost impossible to find in their countries – steady employment.

Data entry specialists may work for companies overseas, but they must be at least bilingual and understand how to type numbers into their language. Many of these workers also possess college degrees and have excellent writing and English skills as well as computer and typing skills. These are highly sought-after qualities that make data entry operators very valuable employees. This is one of the reasons why your company should consider outsourcing work to the Philippines or any other country where workers are looking for jobs.

Another type of worker you can hire abroad through an offshore outsourcing company is what's called a customer support representative. The work of these people is to answer telephones and deal with customers who have questions about the products or services they deliver.

Customer support staff may be hired part-time via outsourcing, but this is something you need to consider carefully before moving forward with it because you will receive several applicants for each available position. Customer service representatives must have excellent communication skills in order to handle complaints from clients, so many applicants have turned away after an interview. You also want them to be computer literate so that they are able to help your customers by quickly troubleshooting problems via email or over the phone when they call in with requests for assistance.

One of the main benefits of offshore outsourcing is that you pay less money for these workers than you would if they were located in the United States. There are many people who need work and want to be employed, so your offshore outsourcing company can provide you with highly qualified workers for a lower rate than someone working in the United States would charge you.

How can I get started with offshore outsourcing in the Philippines?

Answers to the question 'how can I get started with offshore outsourcing in the Philippines?' are plentiful. The first step you need to take is finding a reputable service provider that will help you initiate your outsourcing partnership.

This article describes all of the steps involved in outsourcing IT processes, but it does not contain any specific information about how to choose an offshore outsourcing company. If you would like to know more about this topic please see our articles containing useful tips on offshore software development and offshore software teams.

Once you have found a good outsourcing partner through references or by other means, your project should start off with a planning phase where both parties discuss what will be done, when it will be done, and who will do it. This is also the stage where you will need to make your software development standards clear since offshore companies have varying abilities.

After the planning comes to the design phase, where you further define how things will be done, create workflow charts and technical documentation, etc. There are many more steps involved in outsourcing projects that are not listed here. 

Once everything has been defined it's time for coding and testing, and only after the software has passed all of these steps will it be ready for deployment.

This is where offshore outsourcing truly shines - the ability to deploy your system or application quickly and accurately. Instead of trying to find enough qualified workers at home, you can focus on building a great product and let your IT service provider handle the programming. This means no more late nights trying to fix bugs that came up due to lack of knowledge or other problems that arise when working with junior programmers.

After your first successful project, you should already have a certain amount of experience with offshore outsourcing, and this will help you estimate development costs and plan future projects much better than before. If you're just starting out, though, planning carefully from the beginning is key to finding success with offshore outsourcing.

The best tip, however, is to find an experienced partner who knows the Philippine market well. Their experience will help you avoid unpleasant surprises and make your outsourcing trip a truly successful one! We hope that you'll be able to get started successfully with offshore outsourcing in the Philippines after reading this article.
Offshore Outsourcing in the Philippines
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Offshore Outsourcing in the Philippines

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