Learn how our Managed Operations model provides the perfect middle ground between outsourcing and incorporating.

talk expert
Talk to
an Expert

Explore the opportunities with us.

Contact Us

Archive for the 'Outsourcing Research / Trends' Category

Why Partner with an Outsourcing Company in the Philippines

by: Finella Kristle Panlilio

Monday, July 31, 2017 | Comments (0)

Category: Outsourcing Research / Trends

In 1992, the first contact center was built in the Philippines, and the special economic zone was established in 1995 to encourage foreign companies to base their customer support centers in the country. Since then, many call centers and outsourcing companies have started operations in the country and flourished.

Today, the Philippines is hailed as one of the top BPO destinations in the world, ranking 2nd after India. The BPO industry is growing at a rate of 15 to 18%. At this rate, the BPO sector will soon become the biggest GDP contributor.

Benefits of outsourcing to the Philippines

The success of the BPO industry is owed to the many advantages that the dynamic country offers its investors. Let's look at the benefits of partnering up with an outsourcing company in the Philippines.

Cost Efficiency

By partnering up with an outsourcing company, you can save approximately 60% to 80% in operational costs. This cost efficiency can generally be attributed to the low cost of living in the Philippines.

According to a consumer price index (CPI), the Philippines is a low-cost country compared to most western and Asian countries such as the US, UK, Australia, Singapore, and China.

In the Philippines, the salary of fresh graduates only amounts to a fraction of what newly graduated employees in the West would receive. The hourly salary of a regular employee in the US or Europe may be the daily salary of a Filipino professional.

Cultural Compatibility

The Philippines was colonized by Spain, and then by the Americans, followed by the Japanese. The impact of the country's colonization history is still evident in today's generation. Filipinos easily adapt to foreign culture as the English language and Western culture are deeply entrenched in its citizens' everyday lives.

Filipino culture today is greatly influenced by past colonizers and popular television shows, music, and theater from the West. In addition, hospitality is an important part of Filipino culture and tradition, making the Filipinos easy to work and socialize with.

English Proficiency

Seventy percent of the Philippine population are deemed fluent in English. Most children are taught the language even before they start schooling, and it's further reinforced when they enter pre-school.

English is the medium of instruction in schools and the primary language used in business. In the 6th edition of EF's English Proficiency Index, the Philippines ranks 13th out of 72 countries in terms of English proficiency. The same English Proficiency Index also revealed that the Philippines ranks as the 3rd (out of 19) country in Asia that’s best in English, after Singapore and Malaysia.

Highly Skilled and Available Workforce

The Philippines boasts a large and young population that's growing faster than the retired workforce and dependent children, with a median age of 23 years old. This results in an abundant supply of manpower and highly educated workforce with a literacy rate of 97.5%.

Every year, colleges and universities in the Philippines produce more than 500,000 graduates—contributing to the pool of qualified and skilled workers. According to experts, the country will continue to enjoy the advantages that this young and talented labor force brings for the coming years.

Economic Growth

The Philippines is enjoying a robust economy, as Filipino people have stronger purchasing power according to the 2017 KPMG Philippine Consumer Market Report. This goes together with the increase of remittances from Overseas Filipino Workers (OFW) and the BPO sector both contributed to the country's GDP growth. Foreign investors can benefit from an emerging market in a business environment that’s ideal for growth and scalability.

The economy is growing despite certain issues such as poverty afflicting the country. The country has a strong consumer market for goods and services that attract both local and foreign investors. This large market is fueling the growth of the Philippine economy.

Track Record, Scale, and Maturity of the BPO Industry

Business process outsourcing started in the Philippines way back in 1992. Its history spans 25 years, with the BPO industry revenue growth increasing ten-fold since 2004. More importantly, the current global market share is at 10%, which has increased three times since 2004. By 2022, the global market share is projected at a whopping 15%.

Accenture, People Support, Convergys, and Sykes Asia were the first multinational companies to hold operations in the Philippines. They have since multiplied their operation sites and offices to include other cities in the country, such as Cebu, Davao, Bacolod, and more. Indeed, the Philippines has a track record of providing quality business process services at lower costs.

Government Support

The BPO sector is one of the top contributors to economic growth in the country, which is why the local government strongly supports it with incentives and regulations that can encourage companies to choose the Philippines as its offshore location.

Such incentive includes the establishment of special economic zones (SEZ) and the Philippine Economic Zone Authority (PEZA), and the fiscal and non-fiscal benefits like the 4-year and 8-year income tax holiday.

Furthermore, Department of Information and Communications Technology (DICT) Secretary, Rodolfo Salalima, confirmed that the local government would continue to support the BPO sector through the Philippine lT-BPM Roadmap 2022, which has a goal of reaching $40 billion in revenues and 1.8 million more jobs for Filipinos by 2022.

Fringe Benefits

Your business can opt for a "follow the sun" workflow so that your onshore operation begins when your outsourcing company ends theirs. This ensures an onshore-offshore delivery cycle for faster production and a significant reduction in your process development duration.

Wrapping It Up

Offshore outsourcing can be a great strategic move for any company and the Philippines is one of the best destinations for this business endeavor. The Philippines offer companies the opportunity to monumentally grow your business at much lower costs. It has developed through the years to become one of the top outsourcing destinations in the world. It boasts of both natural resources and talented workforce that you can leverage for the success of your business.

Whether you need contact center solutions, IT support, website development, or creative services outsourced, you won’t go wrong in choosing MicroSourcing as your offshore operations partner in the Philippines.

Top 10 Reasons to Outsource

by: Finella Kristle Panlilio

Wednesday, August 16, 2017 | Comments (0)

Category: Outsourcing Research / Trends

Businesses nowadays consider outsourcing as a strategic step to gaining competitive advantage. Business process outsourcing providers are considered as partners rather than just a contractual business that carries out major functions that aren't necessarily considered as core business.

Before, cost reduction was one of the main reasons why companies outsource - it still is, but today, there are several critical areas that businesses carefully consider when choosing an outsourcing partner that ensure their core competencies are fully utilized.

Reasons to outsource business functions

Here are the top 10 reasons to outsource some of your business processes:

  1. Reduce and control costs. Outsourcing allows you to lower expenditures on fixed costs and control variable costs that can result in significant savings.
  2. Improve and maintain business focus. Most outsourced tasks are time-consuming. By turning over these, you can fully attend to your core business processes.
  3. Tap world-class talent. Offshore companies offer a global knowledge base that delivers the same level of output, but with great quality.
  4. Share risks. Your partner company helps mitigating risk factors for your company by dividing and delegating operations.
  5. Free up internal resources. These resources can be allocated to other functions, or better yet, to your reserves.
  6. Gain access to resources. This is incredibly helpful especially when your company is experiencing internal resource crunches.
  7. Streamline time-consuming tasks. With efficient delegation, you can increase accuracy by streamlining time-drive and time-sensitive tasks.
  8. Maximize external resources. Outsourcing provides you with flexibility and control, especially when it comes to unforeseen scenarios that may affect your position in the market.
  9. Access to new market areas. You will be able to gain access new markets and establish local presence ahead of your competitors.
  10. Realize the benefits of re-engineering. Outsourcing can help your business achieve dramatic enhancements in your core and critical operations by redesigning your business process.

To help you find the right outsourcing solution for your business, get in touch with MicroSourcing today.

5 Outsourcing Tips for SMEs

by: Finella Kristle Panlilio

Monday, August 14, 2017 | Comments (0)

Category: Outsourcing Research / Trends

Small- and medium-sized enterprises (SMEs) face the challenge of handling and managing various tasks, not to mention rising expenditure in order to keep up with the competitive market. Outsourcing has proven to be a valuable business strategy for a variety of reasons: to keep costs down, better allocate resources, and to meet the demands of running a business.

Outsourcing checklist

As a result, outsourcing companies have become strong partners for SMEs and continue to attract more SME clients. If you are decided on committing to an outsourcing partner, check on the following things first:

  1. Functions to be outsourced. Make an assessment on which business processes you need to turn over to a third-party provider. The most common functions that SMEs outsource are IT support, customer support, virtual assistant (VA), human resources and recruitment, PR and marketing (traditional and digital), and social media management.
  2. Company reputation and history. It's important to screen your potential outsourcing partners and find out if they are the right fit for you. How long have they been in the industry? If you can, look up previous work for other clients, how many and who are their clients (past and present), are they updated and compliant with all the laws and regulations, and what type of outsourcing services they offer and specialize in.
  3. Payment terms. Outsourcing companies offer flexible arrangements that you are most comfortable with.
  4. Control on operations. Contrary to assumptions, outsourcing gives you more control and minimizes risk at the same time.
  5. Contract. Have them draw up a contract for you and see if you both agree on all the terms.

Learn more about MicroSourcing’s services that best fit for SMEs today.

Medical billing (along with coding) is considered as an invisible engineer of the healthcare system. Rapid advancements in the medical technology field not only improved the efficiency and accuracy for a better quality of healthcare, it also created the demand for this profession as well.

Essential to ensuring the effective running of medical institutions, a trained medical biller's job is to encode the claims and submit them to the insurance company for billing. A medical biller is responsible for checking any discrepancies and follows up with the insurance company to make sure the patient's claim has been approved and inform the patient of the updates on their claim.

Tips before outsourcing medical billing processes

If your company is ready to outsource your medical billing functions, let this checklist serve as your guide in selecting the right outsourcing partner.

HIPAA compliance

Knowing whether or not a medical billing company is Health Insurance Portability and Accountability Act (HIPAA) compliant should be on top of your list. This ensures that the company follows legal protocols that safeguard health information and protect the patients' rights. In extension, the company should also be updated with other corresponding regulations, laws, and guidelines.

History and reputation

Entrusting sensitive and confidential patient information is of paramount importance. When choosing a medical billing partner, do a thorough background check first. How long have they been in the business? Who are their past and present clients, their affiliates? Reach out to your prospects and find out who you are most comfortable with.

Transparency in the process

This means that you have complete oversight and total access to all valuable information at any given time. This also helps ensure the accuracy and efficiency of the process, and enhance productivity. This also includes knowing the types of reports (such as charges and payments summaries, aging summary or A/R, adjustments summary, visits, procedures, denials, and collections activity report) that you will receive and how often you will get them.


This doesn't mean you must automatically go for the company that offers the cheapest services. Full-service medical billing outsourcing companies are staffed with trained and experienced billers and have advanced revenue cybertechnology that enables them to charge a premium for their services. This means they are well-equipped to handle more collections, which means more revenue.

Benefits of Outsourcing HR & Payroll Processes

by: Finella Kristle Panlilio

Wednesday, August 09, 2017 | Comments (0)

Category: Outsourcing Research / Trends

Businesses choose to outsource for many reasons. Initially, it was a practical cost-cutting measure but has eventually become a means of competitive growth, by hiring people of varying specializations.

One of the main reasons of outsourcing specific business processes is to ensure quality, efficiency, accuracy, and better productivity in essential, but non-core operations in your company. Your human relations (HR) and payroll are two of them.

Long-term benefits of outsourcing HR & payroll

These functions, although do not technically and directly generate profit from customers, in many ways offer a substantial return on investment (ROI) for the company, especially in an aggressive market. Reallocating your HR and payroll processes have many long-term benefits for your company.

  • Cuts costs. HR and payroll are essential to ensuring your business operations run smoothly, and therefore takes a lot of resources to do so. Having an offshore provider for these functions significantly saves you variable costs, including hiring full-time employees with traditional employee benefits. Furthermore, valuable in-house HR administration duties such as training and recruitment are expensive and are a practical benefit. Outsourcing also means having the access to an otherwise large expenditure, state-of-the-art technology, including updated payroll software needed for compliance changes.
  • Better focus on your core competencies. Having a third-party provider carry out these time-consuming tasks for you allow you to focus and develop your core functions to increase market share.
  • Enhance security and reduce risks. Both these functions involve handling and processing complex and sensitive data. Having a trusted, reputable, and highly experienced outsourcing HR and payroll service provider ensures data protection and security that comply with laws and industry standards. They have the skill and equipment to avoid exposure to security threats and internal risks.
  • Compliance with regulations. HR and payroll require knowledge of laws that govern the handling of funds, taxes, benefits, and incentives. This can be very challenging to execute accurately and consumes a lot of non-billable hours. In addition, HR personnel is responsible for answering inquiries related to compensation, including tax deductions, wage increase, and other related payroll-related concerns.