How to pick your outsourcing or offshoring service provider

How to pick your outsourcing or offshoring service provider

So you have been considering in engaging an offshore staff for your business. No doubt you have a friend or a friend of a friend that is offshoring or outsourcing and apparently getting great results – how do you go about choosing an outsourcing service provider and how to go about it?

The first thing you need to think through is what will “success” in your offshoring or outsourcing project look like? A common mistake businesses make is to judge the success simply on the direct cost savings and not look at the bigger picture.

For example:

A business had an Accounts Payable role in Australia and the salary for that role was $65,000. They now have a staff member in the Philippines who only costs them $20,000 – Bingo they are a mile in front! – or are they ….?

Ask a few more questions to scratch a little deeper and you might also find out that:

  • As a result of not developing an internal communication strategy to ensure that the offshoring plans were well received in Australia, two long term staff resigned, fearing their jobs might be at risk;
  • The business’ accounting fees have now increased by a few hundred dollars a month as a result of the extra time it is taking to fix journal entries that haven’t been posted correctly;
  • The CFO is having trouble supervising the Filipino staff member as they have no reporting on utilization and no point of contact within the service provider to resolve this issue;

To top things off the Filipino staff member has just resigned because:

  • they don’t feel valued (they are working in a “battery hen” style office with rows of identical small cubicles)
  • no one has given them any training;
  • they don’t have an agreed position description/KPIs;
  • they are having some problems with the remote IT connection which is making it hard to work efficiently;
  • they think their Australian manager is rude because they only ever email them and don’t talk to them face to face by video conference
  • they were made to work through the Filipino public holiday on All Saints Day (they had their yearly family reunion planned for that day).

What is often presented as very simple and easy to do is often not and this is definitely the case with offshoring and outsourcing.

If you want your initiative to be successful then the outcomes you, want to achieve, in addition to the obvious cost savings, should include:

  • Australian staff support and engagement
  • Cultural integration
  • Business integration and consequently a “one business” mentality
  • Smooth transition of the functions
  • Low staff turnover
  • Minimal complaints

The only way you will achieve these objectives is with the assistance and guidance of your offshoring service provider. Be careful who you pick – many of the service providers do little more than offer a serviced office with recruitment assistance. Fail to pick the right provider at the start of your process and it is likely you won’t get the result you were looking for.


Outsourcing IT Functions: The Importance of Staying Competitive

Outsourcing IT Functions: The Importance of Staying Competitive

When you think of outsourcing functions, those related to IT usually first spring to mind. Some would even say that the BPO industry overall gained traction because of the breadth of outsourced IT functions. In recent years, it has gone beyond just providing in-office support to companies they collaborate with.

Properly fitting your business for IT functions is not an easy task. It is something that must be done regularly, resulting in a costly endeavor. This is often why businesses turn to outsourcing. If no one in locally has the IT expertise a business needs, they are likely to get results through outsourcing. They save money while also meeting their different IT-related needs.

Essential IT Functions to Outsource

Indeed, the IT industry has the biggest range of functions companies can send to outsource. It is also true that the business climate has continued to evolve. What were once perceived as simple tasks can now be called challenging. At the rapid rate businesses work today, it is inevitable for certain functions to be outsourced.

Here are five IT functions that your business should consider sending to an outsourcing provider.

Software Development

Perhaps the most common IT function outsourced is software development. Not only is it a more cost and time saving approach for companies, it allows them to work with experienced professionals while mitigating risks. There may be a lack of local or in-house experience, but outsourcing software development allows flexibility and a focused strategy.

Web Design and Development

We’ve discussed at length before the importance of web development to companies today. In an increasingly online environment, it’s important that companies stand out with their online presence. Companies that do not have a defined presence online and just rely on social media reach are at a major disadvantage. An outsourced web designer not only makes sure you stand out, but can do so at a reduced cost.

However, while a website’s presentation is important, so is the overall functionality. A business’ website may have all the content and branding it needs to win people over. If it is constantly plagued by errors or does not properly display on mobile devices, potential customers and clients will react negatively.

Email management

Managing an entire email account may not be the first role you consider when outsourcing IT functions. As stated earlier however, the rapid rate of operations means a high volume stream of emails daily.

By outsourcing your email management, you not only address this but a well-equipped outsourced IT team offers protection common digital attacks. They can organize cluttered inboxes and can also provide regular reporting of messages that are of high priority.

Managed hosting

Experienced outsourcing providers are able to scale any IT infrastructure required of them. For businesses on the cusp of growing, they may need dedicated servers beyond their local office. As their business grows, so should the IT infrastructure that scales along with them.

IT functions

Outsourcing IT functions lets companies access dedicated and secure servers.

You can also access and use a shared server in order to exclusively use a protected server of your own. By outsourcing managed hosting functions, your providers can adjust their infrastructure based on particular conditions at any time. You anticipate when massive influxes are coming in to your website, then scaling back to a more manageable approach.

Data center outsourcing

Most third-party outsourcing providers offer data processing and resources for companies. This is often the case when the company’s own IT department is not equipped for it. From data collection to data storage and backup, maintenance and updates, having a trained staff on-hand can help ease the processes that come with data center outsourcing.

Keeping Your Business Competitive

The track record of outsourced IT functions continues to develop as technology gets better. As a cost saving approach, outsourcing is second to none, especially when it comes to IT functions. More than that, companies that outsourced will be collaborating with an experienced provider that can meet their goals.

Diversify is fully equipped to handle IT functions ready to be outsourced with teams that can take on these responsibilities. Contact us today to get started.

Recommended Articles:

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  3. How Outsourcing Can Help You Create a Branded Customer Experience
  4. Manila’s Status as an Outsourcing Destination

Outsourcing Marketing: Five Functions to Consider

Outsourcing Marketing: Five Functions to Consider

With the online landscape constantly changing, outsourcing marketing roles requires a very set of special skills. Traditional methods are becoming harder to apply in today’s day an age. That is why marketing in the digital age involves specialised knowledge and understanding of the online landscape that continues to get technical each day.

Outsourcing Marketing Functions

Indeed, many companies today recognize the need for a strong marketing team. However, a few today are finding further success by outsourcing marketing functions. Not only do they see the advantages of collaborating with outsourcing companies in the Philippines, they reap the benefits of outsourcing in general.

Marketing roles are very divisive, with each serving a critical role in the development of any company. Here are some functions that companies are able to outsource.

Digital Marketing Specialist

Navigating the current online landscape is a daunting task, especially from a marketing perspective. What’s clear however is that the once reliable, traditional approaches of marketing are no longer viable strategies in the 21st century. A digital marketing specialist understands how companies can increase brand awareness, engage new prospects and promote a company effectively online.

Digital Marketers are often the backbone of a company’s strategy online. With the right outsourcing provider, you can find the right digital marketer who can take your company to the next level globally.

Business Development Consultant

Market research and analysis are important to any company if they want to stay competitive. That is what a business development consultant brings to any marketing team. With their knowledge of industry sectors, market trends and customer habits, they are able to craft proposals and presentation while also implementing campaigns and managing end-to-end client relationships.

outsourcing marketing

Business Development Consultants collaborate with top management to deliver key outcomes.

It might be hard to imagine such a complex role is able to be outsourced. With the advancements in technology and real time communication, outsourcing a business development consultant is now easier than ever. Through your outsourcing provider, they will work closely with your different managers to deliver key outcomes for the marketing side of business.

Content Creation

If you want to get the most out of search engine optimization, your company needs to produce top quality content. Not only that, the content has to be produced on a regular basis. Through an outsourced content creator, they will be able to deliver these through thoughtful discussions and regular posts that keep everyone updated. Doing this shapes your company’s reputation as an industry thought leader and authority. In turn, it helps attracts the attention of leads, prospects and even potential employees.

Content is also not restricted to just what is produced on a company’s official site. This also covers what your respective social media pages produce as well. As the old saying goes, content is king but engagement is the queen.

Social Media Management

As discussed above, online content creation also involves also bolstering your social media pages. Many companies fail to capitalize on the importance of maintaining a presence on Facebook, Twitter, LinkedIn and other platforms.

Making companies thrive on social media is not an easy task. It requires creativity, patience and a keen eye on the comments or reactions from people who visit your page daily. It goes without saying that having someone dedicated social media on your marketing team will help maximize your presence on different platforms. By outsourcing a versatile role, you can boost your presence on the platform you choose without compromise.

Graphic Designer

So you may be wondering why graphic design is considered a marketing role instead of a creative one. As it is also considered a form content creation, graphic design requires regular output at a consistently high level. In today’s online landscape, it’s all about standing out and great graphic designers will help you accomplish this. They are in charge of maintaining your brand image and defining aspects – from color scheme down to font used – that will make people remember your company better.

Consider these important functions but from a more cost effective approach. Hiring a graphic designer locally can be costly even if it means getting high quality work from them. When partnered with an outsourcing provider, you can get the same work done at the same level without any extra cost.

Staying Competitive Globally

Outsourcing key marketing functions will benefit companies in the short and long run. While it does involve collaborating with a provider in another country, it also means reaping all the advantages of a great marketing team at a fraction of local costs. Through due diligence checks, the right outsourcing provider can help fill out the functions that you require.

Diversify is fully equipped to handle all your outsourcing marketing needs and is ready to provide a team that can take on key functions. Contact us today to get started.

Recommended Articles:

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  3. How Outsourcing Can Help You Create a Branded Customer Experience
  4. Manila’s Status as an Outsourcing Destination

Having an Offshore Team in the Philippines

Having an Offshore Team in the Philippines

Adapting an offshoring strategy is a major business decision that needs to be carefully considered. Most companies that look at offshoring see it primarily as a good cost-saving measure and taking advantage of these cost savings require proper implementation and time.

Many established providers know the challenges that come with an offshore strategy and how to properly service their clients. Through customized strategies and consistent support, businesses and offshore service providers work together towards mutual success.

Diversify has seen first-hand how offshoring can transform businesses. Whether you’re in the retail, finance or even construction industry, there’s an offshoring strategy tailor-made just for you. It’s important, however, that businesses first understand what it means to have an offshore team in the Philippines.

Offshoring At A Glance

Let’s get this out of the way: offshoring and outsourcing have fundamentally different concepts. If your business is looking for more immediate, short-term solution without extra management, then offshoring may not be for you. While traditional outsourcing means engaging a provider to manage your team, offshoring is about working with and managing your own workforce in a full serviced workplace. With offshoring, businesses retain full control over the people who make up their team and their specific roles.

This means there is greater transparency in offshoring since you manage your team members directly. While outsourcing focuses on processes and getting them done, offshoring has a more people-oriented approach. Though implementation takes much longer than an outsourcing strategy would, offshoring becomes more affordable in the long-term.

An offshore team in the Philippines can now include roles like graphic designers, architects and accountants.

Having a more hands-on approach is what makes offshoring unique. Businesses have a much larger say in what goes on with their team instead of letting their provider do all the work. This also means training and developing their offshore team. When properly implemented, a team’s output is optimised, and they become valuable members of their business.

Your Offshore Team in the Philippines

So where can you find team members to fill these roles? We at Diversify have always called the Philippines the best location for an offshore team. The country is host to a very deep talent pool full of potential team members with specialised skills. It’s also easy to communicate with a workforce in the Philippines thanks largely in part to their 95% English literacy rate. The BPO industry is a major contributor to the country’s GDP and is poised to become its biggest one within the next few years. The government has long recognized what offshoring – and the BPO Industry – has done for the Philippines and they have taken steps to cultivate it.

Many companies tout the talent and expertise an offshore team in the Philippines brings.

Perhaps the biggest reason companies choose to offshore to the Philippines is the people themselves. In a 2017 report by Tholons, the Philippines ranked one of the top digital nations when it came to talent, skill and quality. The report also called the Philippines the “undisputed leader” in customer service, citing a positive business climate, supportive government regulations, and its place as one of the world’s largest English-speaking nations.

Companies that found success with an offshore team in the Philippines cite their strong working relationship with Filipinos. Clients often call Filipinos hardworking, dedicated, engaging and very personable team members they are happy to have. Some would say this is due to uniquely Filipino cultural traits that other countries don’t have. For one, values of loyalty, discipline and respect are part of the Filipino psyche, and they carry these with them to their personal and professional lives.

Offshoring Challenges and A Best Practice

No matter how good any business strategy is, they are not always perfect and can encounter some problems. Offshoring is certainly no exception to this and there are a few challenges that often arise. Because local teams work closely with a team outside their region, cultural miscommunication and challenges may occur. For instance, Canadians or Australians may approach particular situations in a way that Filipinos may not be used to. If companies ignore these cultural nuances or don’t try to find a middle ground, there are likely to be issues. To get around this, consistent interactions with your offshore team in the Philippines can give both sides better insight of each other’s work cultures. Doing this ensures smoother communication and issue resolutions with minimal or no incident.

You’ll hear it a lot from companies that have a successful offshoring strategy in place, but engagement is key. As part of your local team, your offshore team should be treated as such. Forward-thinking companies often check in with their teams to monitor their daily output, routines and overall satisfaction. Being more familiar and engaged with your offshore team helps develop a stronger rapport understanding of their greatest assets and areas for improvement. This close association with your offshore team is something you are unable to do with a traditional outsourced team.

The Long Term Effect

Finding success through offshoring is not something that happens overnight. It requires consistent engagement and development of your team as you establish their roles in the company. But working with the right provider can ensure that your offshoring experience is a smooth one.

It’s through this engagement that they become motivated, dedicated and loyal to your company. By showing how everyone’s roles fit into the overall vision of your company, the more driven they become. This is particularly true when you work with a team based in the Philippines. By expanding your reach, your offshore team becomes an essential asset to your global success. The best part of it all? You can reach new levels of success locally and globally at a fraction of the cost.

Diversify’s experience with the Philippines has made us one of the leading offshore service providers in the country. If you wish to begin your offshore journey with us, feel free to contact us today.


Canada and The Rise of Modern Outsourcing

Canada and The Rise of Modern Outsourcing

Some of the most successful companies today are no stranger to the advantages of outsourcing. As a constantly evolving business strategy, modern outsourcing has become a favored approach for companies of all sizes. With businesses becoming more global and interconnected, outsourcing has helped them stay competitive amidst a constantly shifting landscape.

Of course, acceptance of outsourcing cannot happen overnight. New, bold business methods will always have some level of pushback from those comfortable with traditional approaches. Even the most effective strategies developed may be seen as unfavorable when they are not implemented properly.

Today, modern outsourcing is more hands-on. Rather than working for companies, outsourced teams collaborate with them, acting as an extension of your local team. This means freeing local resources and cost savings, making way for more value adding opportunities opening up locally.

An Outdated Method

When looking back at the outsourcing controversy from the Royal Bank of Canada in 2013, many experts admit that avoidable mistakes were certainly made by RBC. While outsourcing does mean sending functions overseas, its purpose could have been communicated much better. By gaining a better understanding to outsourcing, its real impact could have been analyzed and anticipated better. By RBC’s own admission, they acknowledged their lack of sensitivity and worked to offer job opportunities to those affected.

As a silver lining, RBC’s actions also led many employers to reevaluate their use of an outsourced workforce and understand what it meant to use them.

Where Outsourcing is Today

Plenty has changed with outsourcing since then, with the development of better technologies and communication tools. This also means a change in how outsourcing is viewed and managed by companies today. Gone is the traditional definition of assigning mid to low level functions to a team based overseas. In its place, there is a growing need for a more qualified, cost effective workforce that can handle different functions across many industries.

Graphic artists and web developers are some of the unique roles found in modern outsourced teams.

Canada is certainly no stranger to the challenges outsourcing brings, but it has also reaped much more from the benefits it has brought. Through its constant evolution, outsourcing methods have become more effective and more specialized, showing the importance of flexibility and better management. By taking advantage of the new, modern outsourcing approach, businesses can get a leg up and compete with others on a global scale.

The Benefits of Modern Outsourcing

When businesses adopt a modern outsourcing approach, it means that they get to work on a smarter level. Additionally, it will help them focus on better strategies that prioritize cost, growth and efficiency. Canada has seen an increasing number of enquiries from companies searching for these diverse and productive workforces, as they have become aware that outsourcing is not what it used to be.

Some businesses still view outsourcing as it was 5-10 years ago. The traditional approach of recruiting a provider to manage low-level functions with minimal input has certainly proven itself to be a good cost-cutting strategy. IT outsourcing in Canada, for instance, continues to be a reliable approach for some.

However, times have changed and so has the way we do business. Thanks to our interconnectivity and advances in technology, it is much easier to collaborate with teams that can provide quality work at reduced cost.

Specialized talents like draftsmen make up plenty of modern outsourced teams today.

To stay competitive, businesses need specialized workforces that can handle more major roles. This means tapping into the potential of a highly skilled talent pool that can take on these functions and operate on the highest level, all at a reduced cost.

This modern approach to outsourcing also means being more hands-on and managing your team member’s roles, responsibilities, even career trajectory. In effect, they become an extension of your local team, aiding in your business growth and expanding your own global presence.

No Longer a “Set and Forget” Process

One of the biggest pitfalls traditional outsourcing had was that companies gave nearly free reign for their providers to manage their teams. It sometimes meant shifting priorities on the fly and immediately recruiting and replacing team members just to meet their objectives.

To get the most out of modern outsourcing, it starts with effective management of those you will recruit to your team. Proper training, constant engagement, and your own local input can make all the difference for you to find success. While it does entail more time and responsibilities than traditional outsourcing would, your business will stand to benefit greatly in the long run.

Looking to the Philippines

It’s no secret that Canadian businesses have found success with traditional outsourcing. By changing their view and adapting a more modern approach, we can definitely see more businesses of every size find the same level of success as their predecessors did. Much of this is predicated on finding the right offshore provider to work with.

The Philippines has emerged as one of the major players in modern outsourcing. This should come as no surprise as outsourcing and the BPO industry is the second biggest contributor to the country’s GDP. The Filipino talent pool is incredibly deep as a result of this, boasts a 94% English literacy rate. Many global companies have called the Philippines a second home for their business, largely in part to their use of the modern outsourcing model.

The Filipino workforce brings a wide range of talents to many industries at a lowered cost.

The quality of work provided by the Filipino workforce is second to none. What’s more, collaborating with a modern outsourcing team in the Philippines means even better cost savings. This provides Canada with many opportunities to outsource different functions beyond the usual healthcare and IT industries we often outsource to. Finance, retail, fast food and construction are just some of the industries today that recognize the need for a modern outsourcing strategy.

Partnering With The Right Provider

In recent years, we’ve seen an emergence of more modern outsourcing providers that can help businesses realize their objectives. These providers live and breathe the modern outsourcing trend and have rooted themselves in countries like the Philippines to fully tap into their potential. Modern outsourcing requires a deeper commitment than traditional outsourcing, but the right provider will ensure businesses have a seamless transition into adopting it. Although it’s possible for trends to change over time, partnering with the right provider will guarantee you are ready to take on and adapt to any challenge that comes your way.

By properly considering the different factors that go into partnering with a modern outsourcing provider, companies of different sizes will be able to leverage themselves into global competitors. For Canadian businesses, there hasn’t been a better time to adapt this more modern approach than now.

This article originally appeared on LinkedIn.