Over the past few years, outsourcing in the Philippines has become a huge part in building our economic structure. It is truly undeniable that this type of industry has also helped over thousands of Filipinos to have a stable source of income, whether be it a freelance or an actual job.

Furthermore, with the vast majority of foreign companies who are offshoring in the country. It only proves that Philippines has talented and well skilled individuals that can effectively help them in growing their businesses.

Offshoring vs Outsourcing

Business Process Outsourcing (BPO) has been around for quite a while and not just in the Philippines. The BPO industry here in the Philippines started booming during early 2000s and up to now shows no sign of slowing down. In fact, experts say that, this type of industry will continuously grow even in the coming years.

Now when we speak of business process outsourcing, a lot of people tend to only get familiarised with “outsourcing”. Although offshoring and outsourcing are related to one another, it is best that we understand their differences:

  • Outsourcing- this refers to acquiring certain services to a third party. What most people think is that, outsourcing is done in another country. However, this may not be always the case, outsourcing can be done wherever, even if the outsourced company or individuals are within the country.
  • Offshoring- this is actually outsourcing but in another country. This is actually one common mistake in most news articles when they refer to outsourcing outside a certain country.

Offshoring HR tasks in the Philippines

When we speak of the BPO industry here in the Philippines, most people would immediately think of “call center agents.” However, outsourcing in the country had already gone way past just the call center services.

At present, foreign companies even offshore other operational services that are within the scope of their daily workforce. Commonly outsourced tasks are HR services. Human Resources related tasks are mostly daily routine tasks but at the same time very tedious and time consuming. In addition, these tasks are non-revenue generating.

Offshoring HR tasks in the Philippines is more diverse, more so, it is industry specific. One example of this are foreign law firms which avail of their entire HR tasks to outsourcing companies here in the country with substantial experience.

When should you outsource?

Usually businesses with 50 or less than employees do not have a well functioning human resource department. Sometimes, with this small size of employees, the owner is the who takes all the job that needs to be done. However, with companies which have more than 50 employees, they will require as much needed help as possible.

One thing that business owners must take into great consideration is that, when a company’s administrative tasks are beginning to slug the company’s productivity, it is the time to make offshoring an option.