Offshoring 3

Economic conditions in the UK, combined with an overall labour shortage, both in terms overall numbers and specialist skills have led to many organizations looking at how they organize themselves to be most efficient.

Offshoring to the Philippines has become increasingly popular among UK businesses in recent years. With a large pool of highly skilled and English-speaking workers, as well as relatively low labor costs, the Philippines has emerged as a top destination for offshoring operations.

What is offshoring 3? Offshoring 1 and 2 are developments of broadly the same processes. You ask an overseas team to manage an established process under-contract in a similar way to local outsourcing. This could be a simple data process such as payroll administration or more interactive call center customer services or outbound sales calls.

Offshoring 3 was already a trend pre-pandemic but as with many digital trends it accelerated through to a new level as Zoom calls became a way of life. In an offshoring 3 set up your team is still your team. They report to a line manager in the host country, they take daily tasks as any other employee would and often take part, digitally, in community and engagement activities.

The offshore partner in the Philippines provides a great place to work in terms of physical location, appropriate technology solutions, salary and statutory benefits and a team and culture of the business including coaching and language support.

There are several positive impacts of offshoring 3 to the Philippines for UK businesses. Perhaps the most significant benefit is cost savings. The cost of labor in the Philippines is considerably lower than in the UK, which can translate into significant savings for businesses that choose to offshore their operations. This can help businesses remain competitive in the global market while also maintaining profitability.

In addition to cost savings, offshoring to the Philippines can provide UK businesses with access to a highly skilled workforce. The Philippines is home to a large pool of talented and experienced professionals who are proficient in English and can perform a wide range of tasks, from finance, HR, customer service to IT and software development. This can allow UK businesses to tap into a new talent pool, which can help drive innovation and improve business performance.

Offshoring to the Philippines can also offer UK businesses greater flexibility in terms of working hours. The Philippines is in a time zone that is around 8 hours ahead of the UK, which means that businesses can provide 24/7 service coverage by offshoring their operations to the country. This can be particularly advantageous for businesses that require round-the-clock support or have customers in different time zones.

Another benefit of offshoring to the Philippines is that the country has a strong business environment that is supportive of foreign investment. The Philippine government has implemented several programs and incentives to attract foreign investment and promote the growth of the outsourcing industry. This can help businesses navigate the legal and regulatory requirements of operating in the country and ensure a smooth and successful offshoring experience.

The final observation for Offshoring 3 is that it is better to build than to buy.

Larger organizations that dominate the traditional offshore markets are often able to provide this new service but still work based on volumes and the cost efficiency of filling up empty desks in their vast offices.

The new kids on the block are more specialist. They focus on one particular skill (such as Finance) or a particular industry to ensure they deliver a higher touch service where the Filipino worker is valued back in the host country just as highly as the other team members. Working from home is here to stay and connecting to teams in the Philippines only looks set to become more popular.