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Outsourcing Philippines – A Guide to Getting the Best Outsourced Staff

August 1, 2019

BPO or business process outsourcing in the Philippines has become a lucrative haven for foreign businesses. The country has turned out to be one of the most sought out places for established and new BPO-based businesses. In some respects, the Philippines has managed to overtake outsourcing stronghold India. Still, India far outstrips the country in terms of IT support, but for other outsourcing and call center services, the Philippines still ranks at the top. If you want to start your outsourced business in the country, here are a couple of tips to guide you.

Philippines still ranks at the top. If you want to start your outsourced business in the country, here are a couple of tips to guide you.

Guide to Outsourcing in the Philippines

Type of BPO Service

There are two main categories for outsourcing in the Philippines. This will be the foundation of other criteria later that will help you build your outsourced company.

 

Vertical Outsourcing

Outsourced services that specialize in a certain industry. Common vertical BPO include the following: healthcare, insurance, legal, and finance.

 

Horizontal Outsourcing

Outsourced services in this category focus more on function-specific services used in various businesses or industries. Examples: Procurement, sales, IT, and HR services.

 

Requirements for Starting a Philippine-based BPO

Just like any other business out there, your BPO should comply with local and national government requirements. Some people don’t like the red tape required by the government. However, finishing all of them will yield more benefits than liabilities.

 

Budget

Financial planning is the crucial first step in any business. Consider the type of outsource services you’re planning to give. Your budget should take into consideration the following areas:

  • Start-up cost (documents, certificates, permits, and more)
  • Building/Office Space
  • ISP, Bandwidth costs
  • Staff wages for the first year
  • Operating expenses such as light and water
  • Buffer for incidental expenses

Once you’re confident with your budget, you can proceed to the next step.

BPO Documents

Obtain the necessary papers and permits from the following agencies.

  • Securities and Exchange Commission (This should be your first stop. Very important!)
  • Bureau of Internal Revenue
  • Local Government Unit Requirements for BPO
  • Location clearance
  • Contract or lease
  • Mayor’s Permit Registration
  • Registration of Business
  • Barangay clearance
  • Public Liability Insurance

Physical Assets / Requirements

Once you’ve finished all the necessary papers, it’s time to set-up your location or office. There are two ways for you to do this.

Leasing Office Space

You can cut the costs of building your office with leasing. The advantage, of course, is the fast deployment of business. Weigh the cost of leasing in 5 to 15 years versus building your office. If it’s cheaper in the long run, then go for leasing. It’s also easier to get permits for the utilities you’ll be needing. The only disadvantage is that you’re limited to the space you get.

Building Office Space

The costs might be higher, however, you’re able to build the office space to your specifications. You can also choose to build on Economic Zones to get tax incentives which can relieve you of heavy tax burdens in the long run.

Hardware, Utilities and other Equipment

While it’s tempting to have cheap hardware and equipment from abroad, take into consideration the customs tax. Sometimes, it’s cheaper to get the items locally instead.

Employee Hiring

Staffing is tricky. You have a talented workforce to choose from, but it will require extensive screening. You can start with the following positions.

  • Admin
  • Managerial / HR positions
  • Full-time staff
  • Freelance staff
  • Contractual staff

Establishing HR – Hiring Policies, Culture Adaptation, and More

Hiring an employee or virtual assistant in the Philippines is more than just the interview process. You need a well-established human resource department to handle the intricate culture differences from you as the boss, to the staff, and finally the customers. Many outsourcing companies fail because they didn’t put much importance to the HRD.

Your HRD will also be responsible for sending employees for additional training, solving disputes, establishing time zone difference shifts and more.

There are two main categories for outsourcing in the Philippines. This will be the foundation of other criteria later that will help you build your outsourced company.

Establishing a physical BPO company has its benefits and disadvantages. There is another option and that is virtual staffing. It’s a fast-rising BPO option for companies that want to deploy immediately and don’t want to undergo a lot of the steps mentioned above. We at Virtual Bitrix will provide offshore staffing services for your company. We’ll handle all the HR responsibilities and provide you with a ready team matched to your specifications. Set up an appointment and tell us what you need, and we’ll have everything ready ASAP.

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