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Fulltime Dedicated Virtual Employee Or The Traditional Offshore Outsourcing Model?

Expansion is a natural, normal and expected course in any growing business. And that expansion often crosses geographical boundaries. A car manufacturing unit may decide to set up its assembling unit in a developing country; a software giant may set up an entire department overseas. Both companies are basically doing what is known as offshore outsourcing, but with their own employees. However, this kind of expansion understandably calls for huge amounts of investment, not to mention considerable running around and liaisoning with the local authorities in a new country. Is there a simpler option? Yes, there is! Hire a fulltime, dedicated virtual employee.

Cost-saving. Efficient. Convenient. Profitable. These are just a few of the adjectives that crop up when one uses the term ‘virtual employee’.

Let’s see what all is involved when a company decides to set up a separate offshore office independently in a far-away foreign country, say, in India. They have to spend time and money in first zeroing in on the city where they wish to set up their offshore office. Then they have to send representatives all the way to India to arrange for those logistics – rent office space, arrange for hardware and office equipment, technology support and back-up (generators), telephone and internet connections, and finally, recruit employees. The whole process is highly time-consuming, stressful and ultimately may not yield the desired results.  While a big multinational company can toy with the idea of opening an independent offshore office outside the country, the average SME frankly cannot factor these extra costs into its limited budget.

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It is exactly for such SMEs that hiring a ‘virtual employee’ is the best alternative to the traditional offshore outsourcing model. Here are 5 reasons why this is so.
It is highly cost-effective. Isn’t that what outsourcing is all about? Cutting down on costs, increasing productivity and increasing profits? The logic behind hiring a remote employee is simple. Why set up an entire offshore office when you can get the employee at a fraction of the cost AND the benefits of an offshore ‘office’? Despite the rising rupee, outsourcing to India still remains extremely cost-effective.

You get the best talent available. Say, the SME in question is amedium-sized accounting firm in the UK. Hiring a top-notch CA can be cost-prohibitive and they may have to make do with mediocre talent. But, if they outsource to a company in India that specializes in providing the best talent available, they can easily have an extremely qualified CA (a virtual employee) working for them – at almost one-eighth of what it would cost them in the UK. Since India has an abundant talent pool of some of the most qualified and professional skilled men and women in the world in almost every field, you can have a virtual team of highly skilled people working for your organization – be it data entry, content writing, software development or medical transcription, all under one roof. Small wonder then that 82% of the US companies ranked India as their first choice for software outsourcing.

It is easy! You don’t have to leave your office or your country to have the equivalent of having your own independent offshore office in India. Thanks to the modern means of communication, you are just a mouse click away from realizing your dream of having an offshore set-up abroad. When you outsource to a reliable offshore outsourcing company in India, the latter takes care of all the other logistics like hardware, software, office rent, etc.

You are spared the cultural divide to a large extent. One of the biggest hurdles in setting up an independent offshore office in an unfamiliar country is the cultural and language divide. But when it comes to outsourcing the non-core activities to a virtual employee, these concerns get considerably whittled down. Of course, certain customs and traditions need to be kept in mind, because after all your virtual employee does belong to that country, but these are usually manageable.

The quantity of work does not matter. If a small to medium-sized company wishes to open its independent offshore office in another country, the quantum of work needs to justify that decision. Statistics have shown that as many as 99% of the SMEs wish to employ anywhere between 1-50 employees when they outsource. This obviously far less a number to warrant a transfer of a large chunk of human and monetary resources overseas for that purpose. MNCs, on the other hand, outsource entire departments comprising of above 100 employees when they do offshore outsourcing. An outsourcing service provider who helps you recruit your own virtual employee does not demand that kind of investment at all. You can offshore one project or ten, your virtual employee will still make it a feasible option.

So, offshore outsourcing is a great cost-saving measure to increase profits and efficiency. But only if harnessed properly.

Daya Mukherjee is a Senior Content Writer and Editor working for a Remote Staffing Outsourcing company in India. You can find out more information by visiting our Outsourcing Services, Outsource, offshore outsource Websites.
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What makes Business Process Outsourcing Philippines different from Other Outsourcing Countries?

The global economy of today is becoming aggressive. Changes are inevitable and new innovations are being introduced. In order to stay competitive, more and more companies are turning to outsourcing. Businesses are aware that time is money, and by outsourcing, companies can have 24 hours a day, 7 days a week of operations to hasten the growth of their business. Business process outsourcing Philippines is one of the top outsourcing choices within Asia that can offer more than economics and time zone difference.

 

Outsourcing is known as the practice of subcontracting jobs from home base to other places and countries primarily because of the companies’ effort to cut costs. More and more companies are now transferring their business services to the Philippines such as technology development, customer service, financial and other administrative jobs

 

The Philippine Workforce

 

Filipinos are known to be very proficient in the English language compared to other countries that offer outsourcing services. They are known for being loyal to employers. Because of western colonization to Philippines, Filipinos became very adept with the western culture and their traditions. English is the official language being used in various areas such as politics, academe, businesses, science and technology. They are also familiar with the business processes and marketing trends of the western countries which gives them a lot of advantages. It takes less time to train Filipinos on different business processes, which means clients spend less for training. Because of the natural skills and technological talent of the Philippine workforce, the country is one of the top priorities of companies that want to outsource services.

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Effect of outsourcing to Philippine economy

 

Outsourcing is one of the greatest revenue contributors of the country.  Philippine outsourcing opens a lot of opportunities to the country and its people such as dropping the unemployment rate. The outsourcing industry is often referred to as the Philippine’s “sunshine industry” because of its very swift and non-stop growth. The CEO of Exist and PSIA marketing chair, Jerry Rapes said, “It is estimated that the total outsourcing market globally will grow to about $250 billion in 2016 from about $125 billion in 2011. IT Outsourcing (ITO) sector is projected to grow from about $80 billion today to about $140 billion in 2016.”

 

Advantages of outsourcing in the country:

 

Philippine outsourcing helps companies to save time. Instead of using your company’s precious time to complete non-core tasks, you can direct your time resource to more important business aspects. Non-core tasks will be taken care of by different outsourcing providers in the country where you can choose from.
Lessens expenditures. All non-core duties and services of your company can be outsourced to the Philippines at a lower price. Your company can take advantage of the economic difference and get the best services and products. Having a business partner in the Philippines spares your company the operational costs because you no longer need to set up a new office or invest in new equipment.
Business process outsourcing Philippines helps companies to operate with efficiency. Outsourcing vendors will provide employees and staff members that are experts within their fields. You can be assured that services and functions will be delivered with a high degree of competence and reliability.
Outsource in Philippines has been proven, fast and effective, with Staff Leasing Philippines and Outsourcing Help Desk, Accounting in the Philippines have a low-cost and effective accounting.
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Reasons why Foreign Companies Outsource in Philippines

With the changes and innovations of the global market place, if your company remains steady and motionless while your competitors ride on the changes and adapt with the trend, it is inevitable that your company will be left behind. Since outsourcing process was introduced, more and more companies are outsourcing their business services each day. Outsourcing processes is now becoming a vital course of action to different kinds of industries.

 

Companies in the Philippines that are dedicated to outsourcing are continuously multiplying and expanding. This is good news to foreign companies that are choosing to outsource in Philippines. The growth and expansion of the outsourcing industry in the country makes the competition among outsourcing providers stiff, and thus further improving the quality of services they provide. With the country’s knowledge about outsourcing business, technical capabilities, and language proficiency; the Philippines can offer the best possible location for achieving the outsourcing goals of every company.

 

Outsourcing business processes to the Philippines has different variable advantages, depending on the nature, situation and industry of a certain company. With the different teams in the outsourcing industry within the country, there are many that are experts in different fields. Companies are guaranteed to gain the right advantages.

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Once you have hired a third party business partner in the Philippines, all members of the staff will support your company around the clock in order to deliver the demands needed. Your company can enjoy the benefits of getting excellent quality kind of service at inexpensive rates.

 

Some of the positive experiences that your company can gain in outsourcing to Philippines are as follows:

 

Finding a partner that can support you in realizing your company’s goals and objectives.
The ability to enhance business in order to achieve broader limits.
To be able to save precious time that can be used for more essential aspects of the business that can facilitate the growth and development of the company.
Maximizing the resources and utilize unique strategies.
Getting an outstanding kind of support service for a lower price.
Better chance in advertising and promoting the products and services of the company with remarkable ease and convenience.

 

Some other things to consider in outsourcing to Philippines are as follows:

 

Be familiar with different levels of customer support which can be provided by each outsourcing company.
Know the goals of your company and see if the resources that can be provided by the outsourcing vendor are enough to meet these goals. The Philippines has several business process outsourcing providers from which your company can choose from. These companies have vast pool of English speaking talent that can provide a high quality of service.
Be specific with your company’s objective when you outsource in Philippines. Look and choose the outsourcing provider that is specialized in the industry where your company operates. Make sure that the outsourcing vendor in which you hire does not only understand but must be expert on the flow of your business.
Take into consideration the duration of contracts between your company and the outsourcing provider. The consistency of cost and its quality of service that they need to provide should also be considered.
Philippines outsourcing companies has been proven, fast and effective, with Outsourcing IT Support and Customer service outsourcing companies, Accounting in the Philippines have a low-cost and effective accounting.
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Top 10 Tips Before Starting Outsourcing To India

Outsourcing to India has for long been the buzzword in the western world. India offers not just cheap labour and reduced infrastructure costs, it boasts some of the best talent in the world, making the average Indian employee a very valuable member of the team, whether it is in the field of IT, BPO, web designing or medical transcription.

But, outsourcing is a major decision and cannot be undertaken on a whim or a presumption because of its long-reaching impact on the ongoing business. Some serious spadework needs to be done.

So, assuming you are a SME and wish to outsource some business functions, here are the top 10 tips before you actually start outsourcing to India:

If this is the first time that you are outsourcing then start with the less complex projects or something on a small scale to test the waters, so to speak. So, even if you have a not-so-good experience, the dent will be manageable.

It is essential to have identified the reason behind your decision to outsource. Has the decision been motivated by a desire to cut costs, increase efficiency, concentrate on your core competencies while leaving the non-core business functions to the outsourcing service provider?  It helps to circle this option because then it decides your approach and expectations from the outsourcing vendor.

What business functions do you wish to outsource? IT, engineering, transcription, call centre related, accounts? There are outsourcing companies in India who specialize in certain fields and it makes more sense to recruit employees form the ones who have a greater expertise and experience in your chosen domain.

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Freelancer or a dedicated employee? What is the nature of the work that you wish to outsource? Is it a short-term project like, say, website designing, that can be completed in a fixed time frame? Is it an ongoing process like data management? A freelancer would probably be more suitable for the former and a dedicated, full-time employee for the latter.

Choose the right vendor. The importance of this cannot be stressed enough. A reputed, well-established outsourcing service provider will be able to meet any requirement that you have regarding a job position that needs to be filled. So, you need to evaluate the vendor’s credentials carefully.

Infrastructure. Alright, let’s say that you are an SME and are looking to hire ten virtual employees to work on a long-term accounting project. Does the remote staffing vendor’s office support your requirement with the necessary infrastructure? Is the building lightning and earthquake-resistant (important considerations in India)? Are the latest hardware and software installed in the laptops and PCs? How is the internet speed and connectivity?

Past client testimonials. Testimonials speak louder than whatever may have been written on the vendor’s website. See how many happy clients the vendor has had prior to you and what each one says about the quality of work received. Few testimonials are not such an encouraging sign but it is definitely better than no testimonials at all!

How often do you need to communicate with your employee? Does the work that you have outsourced, like Dot Net development need regular inputs from you? These are vital issues that need to be worked out before you sign on the dotted line. It is these very issues that could later become a bottleneck in achieving a smooth interpersonal relationship. Is the remote staffing company offering you the basics of communicating with your employee – telephone access, Skype chat, Video Conferencing, and email?

How much control or intervention do you need? Do you require that your employee work in a proper office environment that has HR managers to keep track of the virtual employee’s work performance and send those reports to you? Make sure the vendor has such resources in place.

What are the security measures adopted by the outsourcing service as far as data protection is concerned? This is one of the most burning concerns for any organization that probably also passes along sensitive information while outsourcing. This concern is justified considering a third party in a foreign country thousands of miles away is handing confidential data.
Daya Mukherjee is a Senior Content Writer and Editor working for a Remote Staffing Outsourcing company in India. You can find out more information by visiting our Offshore Outsourcing Company India, Outsourcing Company India, offshore outsourcing india Websites.
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Human Resource Outsourcing- Need of the hour?

In today’s business environment, which has become highly competitive and much more global, reducing the cost of services provided by the businesses and achieving core competency in niche areas, human resource outsourcing has become need of the hour. As is evident by the name itself, human resource outsourcing is outsourcing some or all the functions of the human resource management to a third party vendor in order to save the cost of administration and reduce the burden of human resource management on the top and middle level management of the company.

A Strategic Business Decision

The various types of functions which can be outsourced in the form of human resource outsourcing includes overseeing organizational structure and staffing requirement, the hiring of various personnel, the training needs of the personnel and their development, tracking department goals, objectives and strategies, benefits administration and employee orientation programs. Until quite recently, outsourcing really meant that areas in which the company doesn’t have core competency should be given to a third party vendor who can do it more professionally and save costs too. But when it comes to human resource outsourcing, it is not the case where companies can’t manage a HR department on their own, in fact they don’t want to manage a HR department on their own, and so more and more companies are now in-part or totally outsourcing their human resource department to third party vendors. This strategic decision makes the companies more focused on their core competencies and they become more goal oriented where top management has all the time to focus on furthering business development rather than on human resource management. Thus, human resource outsourcing is a strategic decision to make.

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Advantages of Human Resource Outsourcing

The advantages of human resource outsourcing are many, including the fact that companies can get rid of an allied function such as human resource management and thus focus on their core business values and targets, thus streamlining the whole company. Another advantage of human resource outsourcing is greatly reducing operational cost by taking out most of the functions of HR, and thus the savings acquired thus can be used to fuel expansion in other revenue generating. One more advantage of human resource outsourcing is that it reduces the burden on the employees-especially the middle and top management, and thus without having to worry about HR functions, the middle and top management of the company can focus on innovation and strategic growth of the company. Lastly, by human resource outsourcing, the company can enjoy the best of the HR services through the third party vendor, thereby getting premium services at lower prices.

On the Flip Side

However,experts have pointed out that there may be some disadvantages of human resource outsourcing as well. The main disadvantage being- the loss of control over employee management and employee relationship building. Also, there are some issues of confidentiality and outsourcing of HR services means losing personal touch with the employees and their daily needs or problem areas. These areas, when outsourced, cannot be totally entrusted on third party vendors.  Most importantly, the quality delivered in human resource outsourcing is also an area of concern.

However,human resource outsourcing has become the latest mantra of the global outsourcing industry and is playing an important role in shaping up the companies of tomorrow, thereby aiding in the process of global economic integration.
Accelcia business process outsourcing provides finance and accounting outsourcing, financial accounting services, human resource business process outsourcing, human resource outsourcing, recruitment process outsourcing.
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