Outsourcing Insights

Outsourcing to the Philippines: all your questions answered

Dale Pearce  •  December 4, 2022

Why outsource to the Philippines?

The Philippines has long been the premier destination for outsourcing services, globally. The prominence of the BPO industry here in country and its position as the leading employer of choice for Filipinos creates an enormous talent pool of candidates in a variety of job functions. Remarkably, the BPO industry contributes more than 10% of the entire GDP of the Philippines!

Filipino's speak great English! The English language was introduced into the Philippines as a result of the presence of the US in the country (during its colonial occupation) in the early 1900's; English is now constitutionally named as an official second language of the Philippines. The English language is also prominent within the Philippines education system. Additionally, the accent of Filipinos is much 'lighter' than that of many of their Asian counterparts, such as other outsourcing destinations like India.

Filipino's are well educated; tertiary education is both popular and prevalent in the Philippines with 1.6 million Filipinos expected to graduate from higher education in 2022.

1.6 million Filipinos are expected to graduate from higher education in 2022

Alongside language and education, the Philippines is a strong cultural fit for Australian businesses looking to outsource. Like Australia, Christianity is the majority faith in the Philippines (making up approximately 90% of the population). So much like Australian's, popular holidays such as Christmas and Easter are celebrated (almost universally). Filipinos also love their sport, especially basketball and boxing. Go Manny!

Types of outsourcing services

Co-sourcing in the Philippines:

The most popular and familiar outsourcing model (for Australian SME). Whereby businesses retain full control and, their offshore resources simply act as an extension of their onshore team (think someone working remotely). The BPO you partner with manages all employment ancillaries such as HR and payroll. And in our case, we provide brand new physical IT equipment as well. You then manage your new offshore team member/s the same way in which you would a team member in Australia working remotely.

Offshoring in the Philippines:

The offshoring model of outsourcing is where an entity shifts an entire segment of their business offshore to a BPO to manage end to end, and eliminates the presence of this part of their business onshore. This includes the BPO providing all necessary systems and IT infrastructure, support teams etc. This model is more complex, as well as cost intensive, and is usually reserved for large multi-nationals (think Microsoft, Amazon, Uber etc).

Co-sourcing is the most popular and widely used outsourcing model for Australian small to medium sized businesses, and the barriers to entry are low

How much does it cost to outsource?

Despite the standard of living in the Philippines continuing to rise, and the emergence of a burgeoning middle class, the cost of living in the Philippines remains very low in comparison to Australia. This allows Australian businesses to enjoy large cost savings through a partnership with a BPO versus onshore hiring.

Generally speaking, savings in the range of 70% are not unusual.

Platinum Outsourcing generally aims to partner with organisations who are seeking a full time remote team member. We believe that providing dedicated full time resources in the Philippines delivers the best experience for our customers (as opposed to part time resources working for multiple businesses at one time).

Save up to 70% vs. onshore hiring through a partnership with an Australian owned and managed outsourcing company - Platinum Outsourcing

All of our team are employed on a full time basis (not contractors), with access to all government mandated statutory benefits as well as additional employment benefits such as private health care, allowances, fully funded team building events and free snacks!

The below indicative monthly prices* are all inclusive (ex of GST), with nothing more to pay. We do not charge any additional fees for onboarding, and provide all our resources with brand new IT equipment (laptop or PC, bluetooth headset, PC / laptop ancillaries).

What jobs can be outsourced?

These are some of the most common roles Australian businesses are outsourcing, but is not an exhaustive list of all services we provide. You can find further information on what we do by clicking the services drop down in the menu at the top of this page or by clicking on any of the links in the below list.

Data Entry outsourcing - $1,100 AUD

Customer Support outsourcing ie. call centre - $1,700 AUD

Marketing Coordination - $2,000 AUD

Accounts Officer (AR & AP) - $2,000 AUD

Front End Developer - $3,100 AUD

Backend Developer - $3,700 AUD

Full Stack Developer - $4,400 AUD

*pricing will differ based on candidate experience

Want further details on pricing? Click here and send us an enquiry - we respond within a few hours

What are the benefits of outsourcing?

The truth is, just about any job role can be outsourced. The more important question is what will work for your business, will it add value, and will it achieve the desired result. Whilst cost saving is generally a significant contributing factor in the decision making process, there are other factors and key benefits that outsourcing provides outside of the obvious cost savings.

Focus on your core business

Outsourcing gives you the scope to focus primarily on your core business. What do we mean by this? Non value add activities such as sales order entry, processing of returns, updating of product listings etc are all low hanging fruit in terms of the types of tasks that can be easily shifted to an outsourcing provider in the Philippines.

Access a larger talent pool

Access a much larger talent pool, gain a competitive advantage by looking outside Australian borders to secure the right person for your team. The Philippines has a working age population of nearly 48 million people in 2022! Outsourcing does not mean you have to reduce your onshore team in size, re align your onshore resources, and scale your team offshore.

De-risk your business

Outsourcing can significantly de-risk your business. Onshore hiring means you have obligations under Fair Work Australia to manage redundancies etc in the event trading conditions change. Platinum Outsourcing has a simple 60 day notification if you wish to cease using our services and there are no exit fees or additional costs to pay.

Outsourcing provides benefits to your business outside of just significant cost savings

What is the process to begin outsourcing?

Outsourcing to the Philippines made easy. We are committed to helping Australian businesses to think outside the box by providing them with easy access to outsourced teams. At Platinum Outsourcing we work on a five step onboarding process.

Discovery: we take the time to completely understand what it is you are trying to achieve by outsourcing. We conduct face to face discovery meetings (either in person or virtually) to gather as much information as we can about your goals, and plans to outsource. This includes collecting job specific information such as position descriptions, KPI's, and your ideal profile for your new team member/s.

Recruitment & Selection: we recruit bespoke for all of our customers. This ensures we get both the correct skills match, but also the right cultural fit for your team. Some of our partners choose not to be involved in the recruitment process prior to selection, and we run pre screening of candidates, and the interview process on their behalf. Others, choose to be intimately involved in the process, joining the interviews and conducting skill assessments (such as live coding tests for developers).

There is no commitment to use our services prior to selection and a start date being agreed, there are also no upfront costs

Start Date Agreed: once you have selected your ideal offshore team member/s, a start date or go-live date is agreed. At this point you sign our simple and straight forward service agreement and we begin prepping for your team members first day working for your business!

Induction: we run a Platinum Outsourcing company induction with all new team members on their first day. We introduce them to our business, our payroll and HR processes and policies, general KPI's regarding schedule adherence etc. and get them set up at their workstation with all the necessary IT equipment to start working for your business.

Training & Handover: similarly to the recruitment and selection stage, some of our customers like us to be involved in the training of their new offshore team. We can also assist in the creation of work instructions and process documents to ensure your team have access to all the necessary resources to be able to do their job to the required standard. This is an add on benefit and is offered to all customers free of charge. Once training is completed, we essentially 'hand over' your new team to you, and they begin working in your business like any other member of your team.

We check in regularly with both you and your team to ensure things are working as they should be (this includes us conducting one on ones with your team here in Manila, facilitating probationary reviews, and general coaching for improvement).

We can also assist in the creation of work instructions and process documents to ensure your team have access to all the necessary resources to be able to do their job to the required standard - this benefit is offered free of charge

We have more than doubled in size during 2022 and being recognised externally along the way for this acheivement, this is a direct result of our commitment to giving Australian businesses easy access to outsourced teams here in the Philippines.

We love nothing more than speaking with Australian businesses about how Platinum Outsourcing is adding value through sustainable, ethical, and pragmatic outsourcing solutions.

Contact us today to discuss how we can help your business also realise the benefits of outsourced teams.

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