The three biggest misconceptions about Philippines outsourcing

The Philippines outsourcing industry has been booming in recent years with Western businesses increasingly recognizing the growth building benefits that offshore support teams can provide. Yet, despite the many clear advantages that outsourcing in the Philippines can bring to companies of all sizes, there are a few common misconceptions that many people still hold.   

While people bring with them a wide range of thoughts about what outsourcing is actually like, there are three main concerns that people tend to have when they consider outsourcing for their business. 

What are the most common misconceptions about outsourcing to the Philippines?
  1. It’s taking jobs from locals.
  2. I won’t get the same quality with outsourced staff. 
  3. It’s all about cheap labor. 

If you’ve never outsourced before, then it’s certainly understandable that these thoughts may have crossed your mind, but when you take a closer look, you will find that the true benefits of outsourcing don’t really stem from money or replacing staff at all. In fact, effective outsourcing is really all about supporting your local staff and growing your service capacity. 

Let’s take a closer look.    

Is outsourcing to the Philippines taking jobs from locals?

Outsourcing is not about taking jobs away from locals. When done correctly, outsourcing is about providing additional support to your local team to facilitate growth. 

Employing staff in most Western economies can be expensive, which is why it’s so important to have your highest paid employees focusing their time on high-value, profit-driving activities. When your top staff become overloaded with paperwork and administration, you simply aren’t getting value for money. This is where outsourcing can be a great solution. 

Rather than replacing your local staff, the key is to provide them with support. Outsourcing works best when your local team is on the ground driving the business, with your offshore team enhancing what they do and taking away the burdens that get in the way of expansion and growth.

Adding affordable support staff also takes the stress and pressure off your local team and avoids burnout and attrition – an issue that the Harvard Business School estimates costs the US economy between 125 to 190 billion dollars per year.  

Do outsourced staff produce lower quality work?

When you choose the right outsourcing company, you can expect that the work quality will meet or exceed local standards.

One of the real draw cards to outsourcing to the Philippines is having access to highly educated and experienced professionals. For example, at Cloudstaff, over 85% of our staff have a tertiary degree or higher, even for entry and low-level jobs. Our customers often comment that they would never be able to find the same calibre of worker if they were employing 100% of their roles on shore. 

It’s also worth noting that the outsourcing sector in the Philippines is also a very mature industry. This means that not only can you find staff with great qualifications but you can also find staff with many years of experience working with similar businesses in Australia, the US, UK, and other Western countries. 

A word of warning, however. Be careful of budget outsourcing providers because you really do get what you pay for. Bottom of the barrel pricing can only be done by cutting corners and this includes the staff. 

The price difference between top-level business process outsourcing providers (BPOs) and the bottom feeders is small, but the difference in quality can be substantial. When choosing a BPO to partner with, make sure you select an experienced provider with a proven track record of success that they can clearly demonstrate to you. 

Is outsourcing all about cheap labor? 

The short answer to this question is, no. While outsourcing can provide great cost saving benefits, if you are only thinking of outsourcing to save money, then you are missing out on a wealth of other benefits for your business. 

To start with, outsourcing opens up a massive global talent pool for you to choose from. In the past, businesses were largely restricted to employing people within their geographical spheres. These days, however, with the rapid uptake of cloud-based technology, it’s easy to find the right people to fit the roles you need, no matter where they live. 

Another great advantage when partnering with a top outsourcing provider, such as Cloudstaff,  is being able to leverage the support networks, technology, and infrastructure of a larger company for your team. 

For example, when we set customers up with offshore teams at Cloudstaff, they get access to a 30+ person professional recruiting team; 24/7 IT support; large HR and payroll support teams, leading staff management software; fully integrated application suites; custom reporting; and enterprise grade data security systems. For many smaller to medium sized businesses, these are features that are simply not accessible without outsourcing. 

As mentioned in the previous point, however, not all outsourcing companies offer the same services or value for money. It’s important to do your homework and check what is included in the price

If the only thing a provider is offering is cheap labor, then we would recommend steering well clear of them. Top providers are committed to supporting your business by supplying you with the tools, technology and talent that you need to go to the next level. 

The significant cost savings associated with outsourcing are, of course, great for businesses, but they are really just one part of the mix.  

Outsource with confidence

At Cloudstaff, we have been helping global businesses of all sizes build effective offshore teams for over ten years. 

We understand that each business is different and offer personalized service to help business owners and managers tailor their outsourcing operations to meet their exact requirements. 

For us, outsourcing is far more than just cheap labor. We provide a total outsourcing platform built on the four pillars of people, process, technology and culture. 

We source only the highest level of candidates for our customers, and have built an advanced network of support services to ensure that the businesses that we partner with have the right tools, training, infrastructure, and technology to thrive in any market. 

Want to learn more about how outsourcing could work with your business? Speak with one of our friendly outsourcing experts today.