Outsourcing isn’t new, but it remains a mysterious enterprise to many small and medium-sized businesses. When my partner Steve and I decided to bring outsourcing to the Philippines to Tennessee, neither of us knew at the time what an impact it would make.
I was recently asked to speak at a Chamber of Commerce meeting where I was challenged by many local businessmen and women, to explain in no uncertain terms, the value of outsourcing.
While I don’t have a transcript of my presentation, this is a pretty close approximation of what was said.
Good Morning, I’m Tim Rogers. I run StaffOutSource.net, and we offer our services as an agency to acquaint American business owners with the value of using a Filipino remote staff. I’m going to try my best to keep this short and on topic, but I will take any questions at the end. So, let’s dive right in.
Outsourcing isn’t new, though it may seem so to many small business owners. The Philippines have been in the business of outsourcing for nearly 25 years. In many ways the country is like an extension of the US, the people speak English as a second language, and most of the population speaks fluent English with pretty much a neutral accent. The Philippines are very Americanized, with the current generation growing up speaking and reading English, watching our movies and listening to our music. They are in a word, Americanized.
That said, the cost of living in the Philippines is quite a bit lower than here, and this is reflected in the labor costs, which means skilled Filipino workers can be obtained at a fraction of the cost of their counterpart in western countries. And while the fact that you can hire a professional staff at a savings of up to 70% is a strong reason to consider them, there are a multiple other reason including the fact they have a deep talent pool.
Every year over 500,000 new college graduates enter the labor market, and while not all of them seek a career in outsourcing, many do, and because of this, many Philippines based universities offer courses in how to be useful in customer service, data processing and more. Mostly, when you look to the Philippines, you’re looking at a group of intelligent young workers, medium age 23, who are eagerly looking for work in the BPO industry.
BPO is short for Business Process Outsourcing and means taking some of your business processes, data processing for example, and turning it over to a third party for completion. Of course, you’re contracting with an agency such as ours, who provide the people, the offices, the connectivity and take care of all the expenses, you pay a flat fee per worker.
Since the Philippines has been outsourcing for a quarter of a century, they’ve gotten very good at how to do the job, and you can rest assured, once they are trained and up to speed, you’ll be getting first-class work consistently.
The reason I was asked here today is, at least in a way, to spread the gospel of the Philippines To explain and highlight the fact that while they’ve been doing this for 25 years, it’s only in the last decade when this opportunity has been available to small and medium-sized businesses, like many of you operate. This is based on the rapid advancement of technology and the fact it’s just as easy to speak with someone on the other side of the planet as someone in the office down the hall; you’re merely saving money while doing so.
Now then, I don’t want to bore you with statistics, but here’s something that most American’s don’t realize. 95% of the top Fortune 1000 companies use outsourcing in some capacity. That means if the big boys like Amazon, UPS, Apple, and others are using outsourcing, it’s become a fact of business and should at least be looked at by smaller companies. In fact, and while this number changes daily, there are around 35 million small businesses which employ about one hundred million people, but only a tiny percentage are presently using outsourcing to cut costs and provide a larger global footprint. What that means to you is just this, now is the time to take a serious look at outsourcing as a way to shoot past your competition while increasing your bottom line.
Whenever I give this talk, this is usually the time when someone will ask, “Why are so few small businesses using the service?” And the answer is pretty simple, and exactly why I am standing here today, it’s new, different and a little bit scary, but like the iPhone, it’s here to stay. There was a great science fiction writer of the last generation who said, “Any sufficiently advanced technology is indistinguishable from magic.” And that’s so true, today we can talk and work with people on the other side of the planet instantly, nearly as easy as I’m speaking with you here today and this is only going to continue to grow and become more efficient. As the Chinese adage goes, “May you live in interesting times,” and indeed we do, outsourcing to the Philippines is certainly part of that.
If you’re a forward-thinking business owner, and if you’re sitting here this morning, I’m guessing you are, then outsourcing to the Philippines needs to be part of your game plan. Not only can you immediately save money, but you can also free yourself from repetitive tasks that can easily be turned over to an outsourcing agency releasing your time and allowing you to concentrate on more critical business functions like raising expansion capital and providing a better user experience.
I believe in outsourcing, collectively my partner and I have been involved in the sector for over 30 years. I’ve been outsourcing since 2009. I think outsourcing, particularly if you choose the right agency, can give your business a boost for 2019 and beyond.
If you have any questions, I’ll be available after the meeting, or feel free to visit us at
Where we have countless articles and resources to help, you understand outsourcing and make an informed decision about whether it’s right for your business.
Oh yes, feel free to get in touch, there are never any strong-arm tactics to use our service, we’re merely here to explain the benefits and see if you and I are a good fit.
Thank you all for inviting me here today, it’s been a pleasure.
Some have called me a bit of Daredevil, but not really, I simply like to stay active and enjoy the people, places, and circumstances I come in contact with every day.Hope you like our site, if you do, please share.Rahn
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