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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.

Outsourcing Online Marketing and DIY: Pros and Cons

by: Finella Kristle Panlilio

Monday, September 25, 2017 | Comments (0)

Category: Outsourcing Research / Trends

The digital world is constantly evolving, thanks to the rapid innovation in technology that makes many things in our lives considerably easier and also more accessible.

However, this can be challenging for entrepreneurs when it comes to maintaining their competitive edge, especially online. The buck is heavier for small- and medium-sized enterprises (SMEs), which have to come up with effective strategies to expand their reach with limited resources.

But what does online marketing do for your business?

Effective digital marketing tactics like content creation, search engine optimization (SEO), social media, and web design help establish your presence. Even if your business focuses on one or some of those processes, the marketing perspective can still be different. These types of functions aim to drive customer awareness to your brand, engage them for a solid relationship, entice them to avail of your services and products, and secure patronage.

Moreover, there are more important aspects involved in launching an effective online marketing, including identifying the best ways to reach your target market, and it's always best to invest in people that not only know what you want but are also committed to your vision.

So should you outsource your online marketing or do it yourself?

Online marketing DIY


  • Familiarization. By doing online marketing tasks yourself (or with an in-house staff), you have intimate knowledge of areas that you need to work on and learn about new tactics to improve your online marketing content.
  • Output. Your output is more consistent, as you are the only ones who work on it, instead of an outsider. With the proper resources and effective time management, you can execute your vision and come up with a unique content when you need them.


  • Expenses. Having an in-house digital marketing team can be expensive, let alone the time and money you'll have to spend on staffing them, to begin with. Not only you have to pay full-time salaries and benefits, there are also expenditures such as office space rentals and dedicated resources for software, etc.
  • Delays. If you are understaffed, there is a high probability of delays and/or interruptions. You'll also have to consider turnover rates since it will considerably affect schedules and deadlines.

Outsourcing your online marketing


  • Savings. Outsourcing your digital marketing efforts to a third party is considerably less expensive than having an in-house full digital marketer. There are flexible payment options that allow you to hire professionals on a contracted rate or on a project basis, depending on your budget.
  • Flexibility. You'll save on many things by not having to worry about recruitment and hiring processes, as well as training by having a readily available professional to work for you. They also offer a fresh, objective approach on strategizing for you.


  • Priorities. It is highly likely that you are not the only client your outsourcing company is working for, which may cause delays or conflicts. This can be avoided by setting an efficient process that works favorably for you.
  • Oversight. By choosing to outsource, you will have to turn over online marketing processes to your third-party provider, which diminishes real-time visibility. But this can be avoided by having daily reports, an established open line of communication, and transparency on operations.

Benefits and Drawbacks of Technical Support Outsourcing

by: Finella Kristle Panlilio

Wednesday, September 20, 2017 | Comments (0)

Category: Outsourcing Research / Trends

Technical support is a vital part of ensuring continuity of operations and establishing cyber security and data protection.

This means investing in IT infrastructure and facilities and personnel to handle 24-hour support, to begin with. Other essential IT functions include data center operations, network operations, disaster recovery, software development, desktop and desk help support, e-commerce, and software applications services.

Outsourcing to gain competitive advantage

As technology continues to innovate and impact the market, businesses have to keep up with these trends and changes in order to gain competitive advantage. That is why many choose to outsource these specialized services.

It is important to consider the many benefits and some drawbacks of outsourcing your technical support functions.


Staff expertise. You will have access to industry experts and specialists that will not only handle and manage your technical support functions, including back-end tasks but will also manage risk reduction and provide advice on anticipating potential risks and issues.

Access to state-of-the-art technology. This improves productivity, faster response times, and continuous service.

Improved scalability. Outsourcing your technical support means you will be able to boost productivity and handle a larger volume of work at a more efficient pace while ensuring quality. It helps you to be more flexible.

Cost-effective. This means lower overhead expenses, which saves on large expenditures such as office space and equipment. Outsourcing results in significant savings on salaries, since you won't have to worry about traditional salary benefits in-house employees enjoy. Instead, you pay for the support package that fits your specific needs.


Risk of less control. Sharing your operations with a third party has its own risks, including less oversight on a daily basis. However, establishing a standard procedure enhances and ensures an organized flow.

Communication issues. Miscommunication can cause setbacks. It's important that you hire an outsourcing company that is not only fluent in your native language but is also familiarized with your culture that impacts your processes.

To learn more about how technical support outsourcing can work to the advantage of your company, contact MicroSourcing today.


3 Key Benefits of Outsourcing to the Philippines

by: Finella Kristle Panlilio

Monday, September 18, 2017 | Comments (0)

Category: Outsourcing Research / Trends

In 2011, The New York Times reported that the Philippines has overtaken India as the 'call center capital' of the world. Since then, the information technology-business process outsourcing (IT-BPO) sector has become the key economic driver in the Philippine and is projected to be worth $220 billion by 2022.

This continuous rise to the outsourcing industry in the country can be attributed to several factors, including the robust macroeconomic expansion seen in the five years under former president Benigno Aquino III, which the current administration pledged to see through.

Reasons to outsource to the Philippines

Foreign investors continue to express their interest and sustain partnerships with local outsourcing companies for three key reasons:

  1. Lower operational costs. Businesses can save as much as 75% in wages alone and as much as 60% in overhead costs. Your outsourcing partner will take care of the typical employee benefits mandated by their country of origin, office space, equipment, taxes, and other related costs such as HR and legal. Moreover, you are guaranteed with continuity of operations at lower costs.
  2. Access to global talent. The Philippines has a young, highly educated workforce with versatile skill sets and diversified backgrounds. Employees undergo the necessary skills training for efficient execution of tasks in multiple sub-sectors and higher value industries. In addition, the Filipinos' natural hospitality, English proficiency, accent neutrality, and exposure to and influence from Western culture are much more preferable to delivering clarity in customer communication and support.
  3. Government support. Aside from the two reasons cited above, a highly appealing factor of the Philippines to foreign investors is its strong government support to the industry. This means competitive advantages are offered in the form of generous investor incentives and tax holidays, which have been put in place since 2002. In order to cultivate the industry further, vocational training schools are provided with training grants and an expansion on technological training support to better improve business deliver solutions. Another highly important legislature is the Data Privacy Act, which requires Philippines businesses to adhere to international data privacy regulations, which ensure strict confidentiality of sensitive information for your business, including customers.

How Medical Billing Outsourcing Ensures Smooth Billing Process

by: Finella Kristle Panlilio

Wednesday, September 13, 2017 | Comments (0)

Category: Outsourcing Research / Trends

Medical billing, which goes hand-in-hand with medical coding, is a critical component of any medical practice. It makes the healthcare system function efficiently and seamlessly through transmitting and processing valuable data to and from patients, healthcare providers, and insurance companies. These include, but are not limited to, patient history, healthcare provider reports, and financial information.

In the recent years, there has been a growing demand for certified medical billing and coding specialists in order to accommodate the evolving and expanding healthcare landscape. These processes are essential, regardless of the type of medical practice, procedure, and service.

Reasons to outsource medical billing

Ensuring accurate information is efficiently transferred between healthcare providers and insurance companies is valuable to your patient. These tasks require expertise and technical knowledge in the medical field and familiarization with the latest industry compliance requirements and standards.

It improves patient care. As much as it is labor-intensive, it is also time-sensitive. This is why many healthcare facilities opt to delegate their medical billing and coding services to a reputable offshore provider. Efficient and accurate medical billing ensures continuity of operations. Working closely with a certified medical coder, the important patient data is then translated and transferred to insurers in a timely fashion.

It ensures compliance with regulations and contracts. Medical billing is governed by different state and federal guidelines and laws, significantly the Health Insurance Portability and Accountability Act (HIPAA), which safeguards confidential information. In addition, medical billing professionals are also bound by contracts with insurance companies, with specific rates accorded to each type of procedure.

It maintains a revenue stream. Medical billers must possess the specialized knowledge of processing payments, appeals, and collections and be able to manage it. They should also know the different medical regulations (and as they are updated) and public and private insurance plan policies.

Contact MicroSourcing today to learn more about our outsourcing your medical encoding and billing tasks.