Outsourcing has become a commonplace business practice for companies around the world. There are plenty of outsourcing destinations to choose from. However, when it comes to IT outsourcing, Philippines agencies are the go-to option, an example of outsourcing in the Philippines is Flexisource IT.
In this article, we are sharing all the things you need to know about IT outsourcing Philippines agencies and why you should entrust your IT with Flexisource IT.
Table of Contents
What is IT Outsourcing?
IT outsourcing is the practice of utilising third-party agencies that provide IT-related services, such as software development, to aid the in-house operations of the company.
Essentially, it bypasses the traditional process of in-house recruitment and enables companies to work with a team of highly skilled IT talents right off the bat. In addition, it is a cost-effective practice since it saves time, money, and other resources.
With that said, there are three types of IT outsourcing.
- Onshore. This refers to outsourcing agencies located in your city or within the country.
- Nearshore. These are outsourcing agencies that are located in nearby countries or within the same time zone.
- Offshore. This refers to outsourcing agencies that are found in another country, usually a continent away.
Reasons for IT outsourcing Philippines
So, why do foreign companies outsource in the Philippines?
There are plenty of reasons that contribute to the country’s success and world-renowned as a premier outsourcing destination. Listed below can be considered as benefits of outsourcing in the Philippines:
- Cost-efficient. The difference in labour costs between the Philippines and Australia is big. In fact, the minimum wage in Australia is 21 AUD per hour while in the Philippines it is 15 AUD per day.
- Highly-skilled talent. The Philippines have a high literacy rate. For context, the country’s high literacy rate and large population provide a wealth of human resources that outsourcing companies tap into.
- Outsourcing track record. The outsourcing industry started back in 1992. In three decades since, the Philippines has risen into a premier outsourcing destination and holds a sizable chunk of 15% in the global business process outsourcing (BP0) market.
- Culture fit. Given the country’s rich history of colonisation, the Philippines is a melting pot of cultures. Moreover, to this day, it is also a top vacation and retirement destination because of Filipinos’ friendliness and hospitality.
- Hardworking and positive disposition. Filipinos are regarded as a positive group of people because of their friendly disposition. Moreover, they are also known to be hard-working because they have a strong sense of responsibility.
Of course, there are also disadvantages of outsourcing in the Philippines.
- Disruptive weather. The Philippines sits rights beside the wide expanse of the Pacific Ocean. Given its location, the country is frequently visited by storms and typhoons that affect networking connectivity on good days and greatly damage infrastructure on the worst days.
- Holiday galore. The Philippines celebrates a lot of holidays, both for religious and historical reasons. In fact, there are 18 official holidays, wherein April and December have the most of them, 4 for each month.
Effects of Outsourcing in the Philippines
It is not only the companies around the world that are benefitting from the IT outsourcing Philippines industry. It has made a positive impact on the archipelagic nation’s economy and people.
One, it has helped the country weather the worst effects of the COVID-19 pandemic. Lockdowns have greatly impacted the economy, slowing economic activity and increasing the unemployment rate. On the other hand, IT outsourcing agencies and BPO agencies provided work to the working population.
Even prior to the pandemic, the benefits provided by IT outsourcing Philippines agencies appeal to Filipinos, both seasoned working professionals and fresh college graduates. Moreover, the outsourcing industry is actively recruiting on a yearly basis.
Why choose Flexisourcing?
With that said, instead of just outsourcing, companies also have the option of flexisourcing.
What is Flexisourcing?
First off, what makes flexisourcing different from outsourcing?
The defining feature of flexisourcing is that it is a hybrid between contracting and outsourcing. Essentially, you are getting the best of both worlds. This means you have the option to get high-calibre talents for specific services on an as-needed basis.
Of course, it is important to take note that there are advantages and disadvantages that come with flexisourcing.
Pros
- Pay only for the services you need.
- Cut down on unnecessary costs.
- Get high-calibre experts for the job.
- Maintain control of your projects.
- Easily scale up or down as needed.
Cons
- Cultural differences between your company and the flexisourced IT team.
Key Benefits of Flexisourcing
Moreover, there are actual benefits for businesses to opt for flexisourcing instead of just outsourcing.
Cost
As mentioned above, flexisourcing can help companies cut down on costs.
For outsourcing, you incur additional costs when you decide to make changes to a project. Opposite to this, flexisourcing, as the name suggests, can flexibly cater to any changes you apply in a project and effectively adapt to it with zero added costs on your end.
Control
Moreover, flexisourcing gives you more control compared to outsourcing.
A typical outsourcing agency, they are already in charge of hiring and selecting the talents that will be working on your project. However, flexisourcing gives you control even for the fundamental aspect of choosing the talents for your dedicated team.
Return on Investment (ROI)
Flexisourcing is all about providing you with the flexibility you need. In relation to being cost-effective, this can yield a higher ROI since you can make the necessary changes to ensure the products and services your business produces perfectly caters to the needs of your customers.
Work Schedule
The flexibility in flexisourcing also extends to work schedules. Your dedicated team is always on-call and can be easily reached. In the case of your flexisourced team, having the option to work at their decided time and working pace, within the parameters that you have set, enables them to work more effectively and productively.
Communication
Lastly, flexisourcing ensures effective communication between you and your team.
For typical outsourcing agencies, there is a project manager that acts as the mediator between you and the team. This can potentially have a negative impact on the quality of communication and collaboration between parties.
In the case of flexisourcing, you can directly communicate and collaborate with your dedicated IT team. This ease of communication ensures there are no misunderstandings or misalignments, and effectively conveys your expectations and vision for the project.
Need a dedicated team of high-calibre IT professionals? Outsource all your IT needs with Flexisource IT. Contact us today to get started.
