Over the past few years, offshoring human resources in the Philippines has become a huge part of 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 freelance or an actual job.
Furthermore, the vast majority of foreign companies are offshoring in the country. It only proves that the Philippines has talented and well-skilled individuals who 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 the early 2000s and up to now shows no sign of slowing down. 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 from 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 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 Human Resources Definition
Offshoring human resources refers to the practice of outsourcing certain human resource functions or processes to a third-party service provider located in a different country, typically one with lower labor costs. This involves transferring tasks such as payroll processing, benefits administration, recruitment, and training to an offshore location where the work can be performed more cost-effectively.
Companies often offshore human resource operations to countries with a large pool of skilled labor and favorable economic conditions. The primary objectives of offshoring human resources are to reduce operational costs, access a wider talent pool, and leverage specialized expertise while allowing the company to focus on its core business activities.
However, factors such as cultural differences, language barriers, and regulatory compliance must be carefully considered when offshoring human resource functions.
Offshoring Human Resources 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. Offshoring 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.
Moreover, offshoring Human Resources tasks in the Philippines is more diverse, more so, it is industry-specific. One example of this is foreign law firms that avail of their entire HR tasks to outsourcing companies here in the country with substantial experience.
When should you do Offshoring Human Resources?
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 that 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 human resources an option.
PrimeOutsourcing Human Resource Outsourcing
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