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More than decades ago, companies started outsourcing their business processes and functions to offshore locations, primarily to cut down on costs and focus on core business activities at home. Since then, the global outsourcing industry has come a long way.

Advancement in technologies has made it much easier to perform work from a remote location, and consequently, the offshore outsourcing industry has grown tremendously. Research studies have been conducted to provide insights and statistics on popular outsourcing destinations and the outsourcing providers that offer their services to customers from all over the world.

Outsourcing statistics

We've compiled the ultimate list of outsourcing statistics to help stay up-to-date with the trends. Check out this infographic and read on to learn more about the global outsourcing industry.

Outsourcing Statistics Infographic

The Global Outsourcing Industry

According to Deloitte's 2016 Global Outsourcing Survey, 78% of respondents claim that they feel positive about their outsourcing relationship.

When asked about the reasons for outsourcing, 59% of businesses cited cost-cutting as the primary reason, while 57% claims that it enables them to focus on core business functions. Another 47% of businesses claim that outsourcing solves business capacity issues.

Other reasons for outsourcing include the enhancement of service quality, critical to business needs, access to intellectual capital, business environmental management, and wider transformational change.

This is why more industries are outsourcing their business processes, especially IT and customer service. Outsourcing sectors include IT-BPO, healthcare and pharmaceuticals, energy, travel and transport, telecommunications, and media.

In KPMG's recent Global IT-BPO Outsourcing Deals Analysis, telecommunications sector consistently remains one of the top contributors to the outsourcing industry. It's because this sector is increasingly leveraging information and communication technology as well as social, mobile, analytics, and cloud technology.

Adoption and Revenue

Another study revealed that since the Great Recession in the United States, the country had outsourced more than 2.4 million jobs. In fact, 57% of companies in the United States increased their use of outsourcing, while 34% significantly restructured outsourcing agreements and only 9% terminated their outsourcing agreements.

When KPMG analyzed the deals closed in the first quarter of 2017, they found that albeit decreasing, the Americas is continuing to be a major outsourcing region that contributes 42% of the total deal value (from 68% the previous quarter). Of these, 41.5% came from the United States alone.

Meanwhile, the EMA (Europe, Middle East, and Africa) and ASPAC (Asia and Oceania) regions are not far behind and have increased their adoption of outsourcing. In the previous quarter, EMA contributed 27% of the total deal value, but during the first quarter of 2017, their contribution increased to 35%. Of this percentage, 22.07% of deals came from the United Kingdom.

ASPAC, on the other hand, contributed 23% this quarter as compared to only 16% in the last quarter. Australia and India were also identified as a key outsourcing market in the same report.

Since the advent of outsourcing, revenue has almost doubled. In 2000, the global market size for outsourcing was at 45.6 billion U.S. dollars and that number has continued to grow until it reached 88.9 billion U.S. dollars in 2015. However, the same source reported that last year, the global market revenue went down to 76.9 billion U.S. dollars.

Automation and Outsourcing

The global outsourcing industry has evolved, as automation technology is taking over much of business processes. Traditional IT-BPO offshoring models are evolving. In the past, operations of an entire business function are contracted. Today, specific services can be contracted and delivered across distributed environments in the world.

But, because automation is a relatively new technology, it still needs to be closely monitored. As a result, new jobs are created as human decision-making and critical thinking are still required in creative and more complex processes. These new positions require more advanced skills for the building, training, management, troubleshooting, and improvement of the technology. In effect, the demand for low-skilled jobs in offshore BPO companies is declining, and the demand for higher skilled workers that can manage and improve automation technology is rapidly increasing.

As such, new offshore positions are being created in rhythm with the trend of outsourcing higher-skill jobs, and creative tasks that cannot be automated is rising. According to MicroSourcing, the most common business processes that companies nowadays outsource are for small or one-time projects, photography services, administrative tasks and repetitive processes, accounting and bookkeeping, and graphic design projects.

The Philippines as a Top Outsourcing Destination

Because SMAC and automation technology is rising, A.T. Kearney took digital competence in consideration to identify the top outsourcing destinations in its Global Services Location Index (GSLI). Along with this, they used 38 metrics surrounding financial attractiveness, people skills and availability, and business environment. In this GSLI, the Philippines ranks as the 7th best offshoring landscape.

Meanwhile, the Tholons Services Globalization Index added digital innovation this year as one of the metrics in coming up with the top outsourcing destinations in the world. It places the Philippines 3rd on its list of top digital nations. Manila is also ranked 4th on their list of top super cities.

These rankings confirm that the country is holding steady as an industry leader in outsourcing. As one of the world's largest English-speaking nations with a 95% literacy rate, the Philippines is an undisputed leader in customer service and BPM (Business Process Management). In fact, 16 of the top 20 offshore call center projects in 2016 were located in the country.

More importantly, the Philippines is gaining ground in high-value fields including legal-BPO and engineering. The country is constantly updating the skills and knowledge of their talent pool to keep up with the evolution of outsourcing trends and automation technology.

Final Words

Digital forces such as robotics, AI, cloud storage, social media, mobile technology, and big data are shaking up the traditional model of outsourcing services. As such, the global outsourcing industry is becoming increasingly competitive, with Canada, Chile, Israel, and Brazil disrupting its landscape. Outsourcing companies and third-party providers need to innovate and re-invent their services to keep up with evolving demands.

At MicroSourcing, we enable organizations and enterprises to get the most value for their money and grow their business exponentially in response to today's digital demands. Whether you're a startup company or an established enterprise, we make sure to offer a strong outsourcing option to help your business thrive.


Outsourcing your medical coding is a practical and cost-effective way to delegate a time-consuming and intricate process so you get to invest more of your time and money to provide quality healthcare services.

When finding the right medical coding vendor, you should look for the one that offers the right services and resources that you are looking for, along with competitive rates and scalable packages.

Compliance Standards

Ensure that you are looking for an outsourcing partner that employs a team of AHIMA- or AAPC-certified medical coders who are trained on ICD-10. Compliance with relevant quality assurance and security standards and regulations should also always be considered.

Scope of Service

It's better to outsource all your requirements to a one-stop shop. Claims processing consists of different stages, with each stage requiring specific skills and experience.

  • Initial claims entry
  • Claims status updates
  • Payment posting
  • Claims denial management
  • Collections

Look for a vendor that can provide you end-to-end revenue cycle management services.

Integration

Different vendors operate with different types of software programs. Compare the processes of each potential outsourcing partner and find out which one can easily be adapted to your operations. Most outsourcing firms allow you to specify the software and systems that you need and they will set up the resources. For transparency and accessibility, choose a service provider that uses online portals and cloud-based systems.

Pricing

In addition to comparing service rates and pricing models, also find out if there are additional fees or if they offer add-ons. Are there installation costs or startup fees? If ever you decide to increase your practice’s size, will the rates be affected? Will there be additional costs for software upgrades?

Also, remember that cheaper isn't always better. Make sure to prioritize the quality of service and the scope of services that you need to meet your needs.

Reporting

Make sure that you can access information and reports in real time, and that online databases and dashboards are easy to navigate. In addition to online access, ask the vendor the frequency of their reports and what will be included. You want to find a provider that will send you reports consistently, at least once a month. The reports that you want to be included are denial, operations, and data analysis reports.

Reviews and Referrals

Aside from looking for credentials and certifications, you must also consider what other customers think of the services and reliability of the medical coding provider. Look for providers that have clients that have the same nature of business as yours, with the same size and have outsourced the same medical coding processes that you require. It’s also best to ask other healthcare practices for their recommendation.

Contract Requirements

Medical coding and billing are crucial processes, so you must ensure you understand what the contract guarantees and that all the important details are indicated. Make sure you know what the minimum contract requirement is and that there is a clause noting how you can opt out if the provider is not meeting your expectations.

Support

When you outsource your medical coding to a provider, find out what kind of support you will be receiving. Who will be your contact person? Will there be an account manager? What is the level of control you will have? Outsourcing providers will not only help you recruit and set up an offshore office space, they also provide support services such as HR management, IT support, facilities management, and finance.

When it comes to control, firms that have the traditional outsourcing model hold all operational control. But for businesses that still want to retain control over their offshore operations and take advantage of the benefits of outsourcing, there's also the managed operations model. This approach involves a local dedicated management team that will help you oversee your operations, but the KPIs, the processes, and the standards will be up to you.

Conclusion

Ultimately, don't rush your decision. The vendor selection process and negotiations can take time, but it will all be worth it once you find the outsourcing vendor you were looking for. For everything to go smoothly, ensure that all involved are in the loop and have clear communications.


Even if you're well-versed in handling your own payroll for your company, many businesses are still choosing to outsource their payroll to save on costs and improve productivity. Think of it this way – payroll is a time-consuming process, and the time and effort you take in doing a non-core process could have been spent on figuring out how to improve your business and increase your revenue.

Just like any other services, there are things to consider in making sure you outsource your payroll to the service provider that’s right for your business. The guide below may serve as your checklist when choosing a payroll outsourcing partner.

Know What You Need

Before searching for options, you must know first what kinds of payroll services you need. So when you talk to outsourcing providers, you will be able to tell them what you are looking for. Identifying what you need will also help you find out the questions you need to ask and the answers you need to look for. Some services that payroll outsourcing providers offer include continuous payroll processing, adjustment management, tax filing, and analysis reports, among others.

Get Recommendations

While searching for payroll providers that offer the services you need, getting recommendations can help you narrow down the choices. Ask your friends or colleagues who work in the same field, look at reviews and testimonials, and hear what other companies with the same nature as yours have to say about their experiences, especially with accuracy and responsiveness.

Check the Provider's Credentials

Now that you've listed down the payroll services you need and narrowed down your candidates, the next step is to find out if the services fit your requirements and if the processes and systems are flexible. Payroll processing is time-sensitive, so basically, look for a provider that releases the paychecks on time, pays your payroll taxes on time, and files your payroll tax forms on time. You should also look for a provider that is accredited and complies with international standards. In addition to your list of services that you require, find out if add-ons are being offered and the costs that come with them.

Ask the Right Questions

As part of understanding the payroll provider and its services, prepare the questions you need to ask. Some providers have forms that you have to fill out with your project specifications. This helps the provider to know more about your business and work they can offer you. On your end, remember to ask specific questions like:

  • What are the pricing options?
  • Which payroll taxes are included in the service offered?
  • What kinds of data and insights will be included in reports and dashboards?
  • How often will the reports be sent?
  • Is the payroll system customizable?
  • Is the data stored in the cloud and can be accessed on any device?
  • Is the system easy to use?
  • What are the security systems in place?
  • Are the services scalable?
  • Can the services be integrated with existing systems?
  • What kind of customer support is being offered?
  • What are the support services available (HR services, facilities, etc.)?
  • How fast is the turnaround?
  • Who will handle the account?
  • Who will be the point of contact for questions and concerns?
  • Is there employee self-service access?

Get a Quote

Once you've chosen one or two potential payroll providers, get a price quote that breaks down all the fees for the services you require. Get a quote for your first year and for your second year to see if rates change over time. This will help you compare the options and see which package will stay within your budget.

Prepare to Outsource

Before or upon signing the contract, you also need to know what you need to provide so the outsourcing will transition smoothly. Prepare organized files that include necessary employee details and other assets or data the payroll outsourcing provider will need.

In summary, the key to choosing the right payroll service provider is to know what you need, know and understand the services available, and aim for the best match. Due diligence can be arduous and time-consuming, but it’s the best way to ensure that you get the best available service at the best possible costs.


5 Signs Your Business is Ready to Outsource

by: Sidney Liquigan

Wednesday, October 10, 2018 | Comments (0)

Category: Outsourcing Research / Trends

When you don't have enough resources or time to focus on the growth of your business, it might be time to consider outsourcing. There are also other factors or signs to look out for that can help you decide if you should be outsourcing an area of your business.

Your Business is Growing Fast

Through social media and other forms of innovative marketing techniques, it is now possible for businesses and brands to gain popularity at an accelerated pace. Don't let the hype become just a phase; turn it into long-term success by having a long-term growth plan. As you transition from a startup to a growing business, outsourcing some of your processes is the way to go. Start by outsourcing time-consuming tasks to free up your time to focus on core processes.

You Need Help but You are Not Ready for Full-time Staff

When you don't have the budget or infrastructure to accommodate additional in-house or full-time staff, outsourcing will enable you to expand capacity without the need for fixed costs and investments. With outsourcing, you only get to pay for what you need and have the choice of assigning the tasks only when you need to. This way, you don't have to worry about overhead costs.

You Have IT-enabled Work Processes

Having IT-enabled work processes in your company makes them easier to be performed from a remote or offshore location. IT provides opportunities for processes to be executed simultaneously across networks, even when the process is executed remotely. It also makes it easier to monitor the status of the process, collect and analyze data, and disseminate information.

You're Turning Down Work

When you're already turning down work from potential clients because you’re already at capacity, then it’s time to outsource. You can outsource your back office processes, some of the production work, or your customer service and marketing. Either way, streamlining your operations and outsourcing to offshore providers improves your productivity and provides you with the infrastructure and resources at a fraction of the cost of expanding your in-house team.

You're Going Global

When people reach out to brands and businesses via contact form, chat, email, or call, they expect to get an answer right away. As an international business, you will receive inquiries coming from different time zones. Outsourcing a global support team allow for 24/7 accessibility.

Don't wait until you're overloaded and your business is starting to suffer. If you're hesitant to give up control to offshore delivery centers, you can ease into the idea of outsourcing by going for managed operations. Your managed operations partner will establish, host, and help you manage your offshore team. At the same time, the control over operations is still yours.


7 Tips for Effectively Managing Offshore Teams

by: Sidney Liquigan

Tuesday, October 2, 2018 | Comments (0)

Category: Outsourcing Research / Trends

Offshore outsourcing can go terribly wrong if not managed properly. And this is usually a concern for businesses new to this approach—how do you manage an offshore team if you are physically not with them to oversee operations? Companies looking to offshore outsource part of their business for the first time are often skeptical and hesitant about the results they can expect.

Here are some tips on how you can effectively manage your offshore team.

Screen staff thoroughly

Before hiring your offshore staff, aside from reviewing their resume and interviewing them, practical tests can be inserted in the selection process. This is to find out if their skills and level of professionalism match the requirements of the job, as well as to see if they can work well in this kind of working arrangement.

Focus on communication skills

With English being the universal language, your offshore employees must be able to effectively express themselves in English, both verbal and written. Choose an outsourcing destination where people use English as their second language and even excel in native English, such as the BPO workers in the Philippines.

Hire a local manager

A local team manager who knows the culture of the offshore location and has the experience working in an offshore outsourcing environment will be a priceless asset to your company as it tries to do offshore work for the first time.

Make your values and goals clear Your offshore team is also a part of your company. It is important that they have a clear image of what your business goals are and the purpose of the project they are working on. As they also represent your company and brand, the values must also be clear to them.

Integrate your offshore team into your company

Get to know your offshore employees. Remember to communicate with them personally by asking about their interests and hobbies. Commending them for their work will also boost their confidence and motivation. Doing so will make them feel that they are a part of your company as much as your in-house employees. To build relationships between your in-house and offshore team and promote effective communication, set up an online chat room where both teams can talk about work-related and even miscellaneous topics. Keeping your offshore team updated and in the loop helps in making the workflow more efficient.

Establish a project management system

All teams, both in-house and outsourced, must follow a single, consistent process and transfer deliverables in the same format. Cloud-based software like Jira, Trello, and Asana automate workflow management and allows collaboration across teams work seamlessly. Using tools like these allows everyone involved in the task to access the files in real time. This also makes adding comments and feedback, distributing tasks, and project tracking more efficient.

Be involved

To ensure that you can monitor and manage your offshore team according to your standards, you must have an adequate amount of control over your offshore operations. Look for an outsourcing partner that can manage its workflow independently and efficiently, but at the same time, gives you the amount of control you require. MicroSourcing's approach to outsourcing follows the managed operations model, where clients get the benefits of both outsourcing and managing their own operations in the Philippines without the risks and extra costs.

Conclusion

With help from today's technology, as well as from efficient solutions provided by outsourcing companies, it's now easier to manage an offshore team. Couple that with care and consideration to keep employees engaged and passionate about working towards your business vision and goals.


4 Reasons for Outsourcing Data Processing

by: Sidney Liquigan

Tuesday, September 25, 2018 | Comments (0)

Category: Outsourcing Research / Trends

Every company, regardless of size, will have a need for data processing and data analytics. Making sense of raw data and turning it into meaningful information is important in helping businesses make strategic decisions. Data processing can go beyond simple data capture and data entry tasks and can also require higher analytical thinking and analysis to produce information that is accurate and actionable.

Data processing is one of the first, and remains one of the most common business processes to be successfully outsourced. Here are the 4 reasons why you should consider outsourcing your data processing needs:

Reinvest Your Time and Money

Managing and processing large quantities of data is time-consuming and requires a lot of resources. By outsourcing data processing, you can reinvest your and your in-house staff's time to focus on core business processes. You also get to save up to 60% on costs, which you can allocate to improving your products, services, or other important facets of your company.

Know-How

Outsourcing providers that specialize in data processing have various technologies to handle different kinds of data processing work, from simple to complex tasks. These providers also have the people, skills, and processes in place to efficiently process large amounts of data in the most time effective way.

24/7 Workflow

Offshore providers have the ability to work around the clock, guaranteeing a quicker turnaround time and enabling your work to be processed outside of your usual business hours.

Operational Flexibility

Your outsourcing partner can scale up or down operations easily, at no additional costs to your company. This gives you a lot more operational flexibility and avoids unused resources within your own company.

MicroSourcing has been processing data for a wide variety of companies for a long time, and we can help you establish your own custom-built data processing unit in the Philippines.


There is much more to medical billing and medical coding than their names suggest. Collectively referred to as revenue cycle management, the process involves eligibility, payment, coding, charge posting, along with other critical tasks that are reliant on each other and are all necessary to receive your payment accurately and on time.

Essential questions to ask when looking for an outsourcing partner

In order for medical practices to perform core duties better, outsourcing medical billing and coding is a great way to make sure that you have the right resources to stay on top of your billing. There are a few questions you need to ask your service provider when looking for a potential outsourcing partner.

What is the level of experience of the provider's employees?

Medical billing and coding is a complex process and should be delegated to professionals who have the right experience. It is important to know if the provider has the specialties you are looking for and if they have enough experience to handle your requirements. When you outsource to managed operations providers like MicroSourcing, it will be up to you to set the requirements or job descriptions, so make sure to tell your provider the level of experience and technical capabilities you require.

What are their credentials?

Usually, you can see on the provider's website the list of certifications and licenses they have. However, knowing this does not always guarantee that they can meet all your requirements. For outsourcing providers, ask if they have the capability to host HIPAA-compliant operations.

Medical billing and coding involves handling sensitive and confidential information. Ask the provider about the procedures they have to protect privacy of information. Ask about their data security standards like ISO 27001 and their experience and certification for these standards. Make sure that their technology and communication channels are secure and consistent with compliance requirements.

How adaptable are their services?

Ask them about their ability to work around your processes and if they have the flexibility to do so. Minor changes can take place, but the medical billing provider should be able to adapt to the processes that you already have in place.

What is their contingency plan?

Every business should have risk management plans in place. Ask the provider about their Business Continuity Plan and run through a number of scenarios to make sure that the BCP capabilities of your potential outsourcing partner match those that your business needs.

Can they provide you with references?

Some providers will show you case studies on previous clients and how their processes and services were executed. You can dig deeper by asking for references that you can contact to ask about their experience with the provider. You can also look around online to find reviews and testimonials.

 

MicroSourcing's managed operations model allows you to outsource your medical billing and coding work to the Philippines and have full control over the operations at the same time. The processes and resources will be up to your specifications, while we provide all the support services and assets that your account will need. We will help you manage your Filipino medical billing and coding team.



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