Last week we talked about how the way the BPO industry is structured in itself a major contributor to the lack of skilled middle management executives in the Philippines. A chief reason was the industry’s addiction to young graduates, and the need to ‘move them on’ before they fully develop due to increasing wage expectations. The week earlier we talked about issues intrinsic to the Philippines itself and how these issues impact on the lack of skilled middle managers. A chief reason here revolved around cultural differences, and the miss-match between how a Western firm might expect a middle manager to respond to a situation, versus the expected response according to the norms embedded in Filipino culture. Solving this issue is non-trivial.
It’s not just big companies that can outsource their processes; small companies can also benefit. Small companies often outsource their payroll processing, accounting, distribution, and other important functions so they focus on their core business. Outsourcing is a way to lower the cost of production without affecting quality of work.
Offshoring to countries like the Philippines has many advantages. A senior diplomat with the Australian government said “Each day 500,000 Filipinos get out of bed to work for American companies. They are the secret sauce that helps to make American companies globally competitive. Wouldn’t Australia be better off if instead these people got out of bed and helped make Australian companies globally competitive?”
Shobe has been with Flat Planet for almost a year now and she works as an executive assistant for one of the company’s high profile clients. How she ended up as an EA after working for eight straight years as a quality assurance officer for a BPO is a pretty straightforward story: she needed change. “It was eight years working the nightshift, and while I did enjoy the work because it was challenging making technical reports and detailed analysis of work processes, I felt I could use a break,” she said. So she applied and immediately got accepted to work in Flat Planet.
When engaging in outsourcing, one of the most important issues that should be considered is the location – both the Philippines and India are the most popular outsourcing destinations. So how do you know which one is right for you?
The Philippines is the contact centre capital of the world - there are more contact centre agents in the Philippines than in India. It also runs second only to India in terms of BPO and KPO operations (simply put this refers to back office and technical work). However, the growth rate of back office work is faster in Philippines than India at the moment.
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