Cebu on spotlight

Aside from its well known history in the Philippines and having one of the most attractive tourist spots, Cebu is also on top when it comes to outsourcing. In a source that i have found, Cebu’s call center industry ranks 4th place in the Philippines in terms of having the most number of major call centers.

(see full issue here)

Take it from Microsoft

Generally, the smart strategy is to hold on to operations or areas that define the core mission of your business. Then, consider outsourcing the other operations that are not as strategic.

If, for instance, your point of difference is customer service, make sure you have enough friendly and attentive full-time employees to make good on that. If, however, you promise rock bottom prices, then relying on an outsourcer, such as a Web-based virtual assistant, an automated phone system or an overseas call center, might make more sense.

Also, think through potentially outdated conventions about on-staff specialists, especially given the reach and effectiveness of today's desktop technology. Traditionally, small businesses have outsourced payroll and human resources services.

But owners can now tap outside facilitators for a much greater range of services. For instance, entrepreneurs with strong sales often assume they need a full-time bookkeeper to oversee the books. But, in fact, you can be running a $5 million company and still not really require a full-time bookkeeper. Such services have little to do with the volume of sales and more to do with the level of accounting activity, such as invoicing, bill paying, payroll and the like. Companies with a full-time bookkeeper can save about $30,000 a year by using outsourced bookkeeping services, say, a half-day a week. (more form Microsoft)

Philippines No.1!!!

Educated! Skilled! Highly trainable!

Think India

India is one of those countries who took the advantage of outsourcing.

The video says it all.

Tips tips tips

I found this video from You tube which will give you helpful tips for outsourcing.

>>>>> You'll Be Thankful You Followed <<<<<

Reasons why outsourcing really benefits

Lower costs due to economies of scale

Ability to concentrate on core functions

Greater flexility and ability to define the requisite service more readily

Specific supplier benefits. For example, better security, continuity, etc.

Higher quality service due to focus of the supplier

Improved internal management disciplines resulting from the exercise itself

Less dependency upon internal resources

Control of budget

Faster setup of the function or service

Lower ongoing investment required in internal infrastructure

Greater ability to control delivery dates (eg: via penalty clauses)

Lack of internal expertise

Increase flexibility to meet changing business conditions

Purchase of industry best practise

Improve risk management

Acquire innovative ideas

Increase commitment and energy in non core areas

Improve credibility and image by associating with superior providers

Generate cash by transferring assets to the provider

Gain market access and business opportunities through the supplier’s network

Turn fixed costs into variable costs

Benefits of Outsourcing

What is Outsourcing — the practice of using outside firms to handle work normally performed within a company — is a familiar concept to many entrepreneurs. Small companies routinely outsource their payroll processing, accounting, distribution, and many other important functions — often because they have no other choice. Many large companies turn to outsourcing to cut costs. In response, entire industries have evolved to serve companies' outsourcing needs.

But not many businesses thoroughly understand the benefits of outsourcing. It's true that outsourcing can save money, but that's not the only (or even the most important) reason to do it. As many firms discovered during the outsourcing "mania" of the early 1990s, outsourcing too much can be an even bigger mistake than not outsourcing any work at all.The flat economy caused many companies into huge layoffs and subsequently outsourced functions that were better kept in-house. Wise outsourcing, however, can provide a number of long-term benefits:


Control capital costs. Cost-cutting may not be the only reason to outsource, but it's certainly a major factor. Outsourcing converts fixed costs into variable costs, releases capital for investment elsewhere in your business, and allows you to avoid large expenditures in the early stages of your business. Outsourcing can also make your firm more attractive to investors, since you're able to pump more capital directly into revenue-producing activities.

Increase efficiency. Companies that do everything themselves have much higher research, development, marketing, and distribution expenses, all of which must be passed on to customers. An outside provider's cost structure and economy of scale can give your firm an important competitive advantage.

Reduce labor costs. Hiring and training staff for short-term or peripheral projects can be very expensive, and temporary employees don't always live up to your expectations. Outsourcing lets you focus your human resources where you need them most.

Start new projects quickly. A good outsourcing firm has the resources to start a project right away. Handling the same project in-house might involve taking weeks or months to hire the right people, train them, and provide the support they need. And if a project requires major capital investments (such as building a series of distribution centers), the startup process can be even more difficult.