When we Filipinos think of ‘outsourcing’, we tend to think of call centers that serve businesses in the US and Europe. However, the very same reasons that those businesses use offshore workers have already started to appear in the local setting. More than ever, Filipino companies are turning towards local outsourcers to augment or even completely take over vital business functions.
As more Filipino businesses let go of old paradigms with regards to team structures, the hiring of freelancers and other kinds of temp workers has steadily become more popular as well. The recent growth of the Philippine economy has also led to the proliferation of start-ups and other new businesses that are rushing to grow as fast as possible. This has accelerated the demand for locally outsourced freelancers as well.
Here are a few reasons why the local outsourcing boom isn’t going away any time soon:
1.) They can save businesses time and money
Freelancers are typically compensated based on their output, rather for the hours they spend working. This often means that they are able to produce the same amount of work as an internal team, for less. Freelancers and outsourced workers also tend to be highly-specialized, which means they tend to work much faster on specific tasks than most internal teams who may only work on these tasks infrequently.
For instance, one area that more and more Filipino businesses outsource these days is payroll. Few businesses have ready access to experienced accountants and payroll specialists, which often results in inefficiency and human error with regards to their payroll. However, nearly every business can afford to contract payroll experts to address this critical business function for them, which usually results in a better-run payroll system.
2.) Few startups can afford to hire specialized workers full-time
Not every business can afford to hire experienced employees full-time. Even critical entry-level positions such as housekeeping are quite expensive to fill, full-time. This usually results in capability gaps between start-ups and their bigger competitors.
However, thanks to sites like Smalljobs.ph, virtually any start-up, no matter the size, can get in touch with thousands of experienced specialists who can provide them the expert services they need. Whether you need an SEM expert, an IT guy, or janitorial services, most business can now afford to pay for specific expertise only when they need it.
The quality of the experience and skill sets offered on these sites is also worth mentioning. A good number of local freelancers also have worked with international organizations, and this knowledge can prove invaluable to many local businesses.
3.) Outsourcing allows you to maintain your focus
If your main expertise is making and designing shoes, there’s little compelling reason to believe that you will gain an edge over your competition by having a better accounting team or better ad copywriters. You could try, of course. But trying to be great at everything can often be a distraction and easily cause you to drift from your core competencies.
Having local outsourcers sweat out the small stuff allows you to focus internal resources on the areas you actually need to excel in. Instead of trying and failing to be good at everything, you can use outsourcers to allow you to be great at the things you need to be good at.
4.) It makes it easier to grow faster
Outsourced labor can serve as a force multiplier, allowing you to effectively leverage your existing team. Using outsourced workers means it can be easier for a small start-up to grow rapidly, even with a relatively lean workforce. The typical freelance or contractual arrangement allows businesses to use certain types of expertise only when they need it, helping them conserve resources and put their full attention towards expansion and stability.
Regardless of your industry or the size of your organization, it’s clear that local outsourcing will continue to become a bigger part of the wider Philippine business landscape. As Filipino businesses change in their general attitudes towards productivity and the local start-up scene continues to be democratized, it’s clear that outsourcing can no longer be ignored by anyone who wishes to streamline their process or make an immediate impact on their market.