Competitive Outsourcing in the Philippines

Outsourcing in the Philippines has been long talked about ever since the early 90s. The industry’s remarkable growth marked the start of a new era for business processes. "Most entrepreneurs have great talents but many times they think they can do it all," Laura Lee Sparks, owner of Legal Marketing Maven says. Gone are the days where business owners need to manage everything end-to-end. Technology has made outsourcing a lot more conducive for business owners, big or small, by making them focus on the income-generating part of the business while having other professionals offshore to handle other aspects of the business to keep it running.

Being the 2nd largest English-speaking country in the world is just another of the country’s feat when it comes to outsourcing. The Philippines is named as one of the top outsourcing hubs in the world for a reason. To date, the Philippines have been boosting its global competitiveness in the latest World Economic Forum (WEF)’s Global Competitiveness Index to rank up to five more notches compared to the previous year’s ranking. The Philippines also got the highest ranking in the macroeconomic environment followed by market size and business sophistication in the annual ranking of institutions, policies, and factors of productivity done by WEF. There will always be possibilities in the shift of demand, but the country’s professional workforce also boasts its high percentage of literacy the more competitive the demand is.

Outsourcing in the Philippines is no longer just an industry; it has become a culture of growth and continuous competitive advantage and adaptive professional experience that can never be duplicated. The optimistic movement in the international market leads to flocking opportunities in the country giving the outsourcing field a strong momentum to do more than just basic office jobs and back support. From its humble beginnings in customer service, outsourcing in the country has taken a big leap to take on more challenging roles like accounting, web design and development, digital marketing, and software development.

Outsourcing Software Development

Software development is a fast-changing field. Software architectures, languages, containers, tools, and methodologies are being programmed every year. This makes the tools that we’re using today obsolete by next year or even earlier. Hiring and retaining talent of this high caliber is the biggest challenge faced by tech companies - whether it’s about the hiring methods, cost, or criteria. Although this part of the business is as important as the others, owners still need to focus on the income-generating part of the business paving the way to outsourcing these functions to a more economic and productive way that will benefit the business in the long run.

Being the biggest segment in the E-services industry in terms of both local and international players, the software development and maintenance sector comprise more than 450 outfits offering a variety of services including analysis and design, programming, prototyping and testing, reengineering, conversion, customization, installation and maintenance, training and education of system software, middleware, and application software. These services are offered not just to local businesses, but most especially to foreign counterparts, even competitor clients such as the US, Australia, Europe, and Japan.

Outsourcing software development can be as challenging as it can be as rewarding at the same time. Disasters and scare stories of failed outsourcing ventures have been on top of the news at some point thus, business owners and IT managers are apprehensive about outsourcing these critical functions of the business. But this was all a long time ago. In fact, 2017 Statista Outsourced Statistics showed that 64% of businesses are outsourcing their software application development and 51% of them outsource the maintenance of the said software application.

Hiring an on-site software development expert is expensive. The US pays its developers some of the highest salaries, yet 40% of these businesses plan to increase their business outsourcing spending. Of those companies, 64% cited software application development as the main reason. For businesses in countries such as the United States, Australia, and United Kingdom, and other first-world countries, it only makes financial sense to outsource.

Outsourcing Software Development in the Philippines

Outsourcing doesn’t have to be an all-or-nothing endeavor. To cope up with today’s fast-changing business environment, it is very important to get things done faster than your company’s on-site team would normally be able to do. While it is obvious that it’s not possible to rush a complex software application development project, outsourcing can make things less complicated.

The Philippines is known to be one of the most competitive countries when it comes to outsourcing. Filipinos as a virtual workforce are teeming with highly competitive and capable individuals, which is why it is a favorite outsourcing destination among small and medium-sized businesses all over the world. The continued growth of the information technology-business process management (IT-BPM) industry in the country which includes offshore software development and maintenance is seen to continue. The Philippines is no longer just a call-center hub, where offshore talents can only offer customer support back end. It’s evolving as the information technology business center where individuals armed with high-caliber knowledge of the ins and outs of any industry can be found.

The Philippines has been providing first-rate software development products and services to markets such as the US, Europe, Japan, and Australia for more than two decades now. The industry experienced robust growth in the 1990s when foreign investors began to take advantage of local programming expertise. The country’s pool of software developers is now equipped with extensive experience in the field – from software development to software maintenance.

Local software firms are believed to face a more serious challenge to find the right target market niche and upgrade their capabilities to compete against other outsourcing countries. The country’s education and government system are facing these possible challenges head-on by creating new curriculums and adjustments that focus more on the new technologies that can benefit software programs not just for outsourcing but for the country’s development as well – combine this with the hardworking and strong-willed characteristics of the workforce, you’re sure to get your money’s worth.

Understanding the Filipino Work Culture and Its Impact on Outsourcing

Work and office cultures are exceptionally different in every country. No bias aside, Filipinos are known to be one of the most hardworking and loyal workers around the world. Whether a Filipino works in an executive office as a rank and file employee or manager, a blue-collar worker in a manufacturing plant, or a volunteer for a government agency, there’s a common workplace etiquette that transcends industries. Companies that have Filipino workers can attest to how efficient and reliable they are. This is evident with how millions of them can be seen showcasing their talents whether it’s on-site or working online. How can Filipino work values work well with outsourcing? Hiring someone offshore will certainly come with challenges. It will be an overstatement that all of the businesses that tried to outsource succeed. It is very important that the outsourced part of the business is handled well with someone who is professional and capable to perform the necessary tasks requested. This is where Filipinos come in. Known for having an impeccable work ethic compared to others, having a Filipino handle whatever you need in the business will leave you nothing but more time to focus more on the more important part of your business, thus, exponentially growing your business in return.

If you’re thinking that the job you are about to outsource is complicated such as software application development, the Filipino workforce has more than enough pool of talents with a wide array of experience in the area. Although it is a fact that some may not be as equally known as the others, you are still in good hands as most Filipino workers are willing to learn and accept the challenges you give them. With them being naturally proactive, strong-willed, and knowledge enthusiasts, they will become the expert you’ve been waiting for in no time. Filipinos are the most family-oriented individuals you will ever meet. They value their job as much as they value their family. This only means that they are treating you as part of their extended family. They will make sure to take care of what’s yours, in this case, your business, and make sure that it will do well. As a team, they will surely make you feel that you can rely on them whenever your business meets more challenging situations.

Filipinos are sincere and loyal. Although this may mean literally nothing in a business perspective, this workforce will always be willing to go beyond what they are asked for. They value good relationships, whether it’s personal or professional. Trust comes naturally with their work ethics. This means that they will get the work done not only because they need the money but they know how important your business is to you. If your goal is to build a successful business, you will have to hire the right people. The hospitality, warmth, and friendliness combined with a high level of professionalism of Filipinos make working with them a rewarding experience. Businesses hire Filipinos not because they are the cheaper counterpart, but because of the work output, they bring to the table.