No one starts a business with the hopes of being bankrupt. It’s no secret that business-minded people are always after the profit. It’s all about the financial benefit that they get from business activities minus all the expenses, costs and taxes which are needed to sustain the company. However, not all companies acquire their desired profit. Many of them are on the verge of seeing themselves in a business mess. When the business is no longer profitable, what should you do? Enter offshoring to the Philippines.
Offshoring means obtaining services or products from another country. In this case, the Philippines is in the spotlight. Statistics show that demands for Philippines offshoring services are growing at over 30% per year. The country is also named repeatedly as the “Offshoring Destination of the Year” by the UK Body National Outsourcing Association—a testament that business owners keep on seeing the significance and perks of offshoring to the country.
But how do you know when it’s time for you to offshore your processes? Here are some signs to help you figure it out:
- High Costs
When your expenses to sustain your business activities are more than what you earn, then your business profitability ranges from very low to negative. To increase profitability, the business must offshore. Offshoring makes companies produce goods and services for less the cost.
How is this possible? The wages of workers in the Philippines are lower compared to other countries. This means that you’ll be getting the same tasks done for as little as half of how much it would cost you to employ someone in a more developed country. Plus, tax and tariffs are lower in some countries. This kind of tax and tariff regimes allows businesses to generate great savings and import products cheaply.
- Skills Shortage
If your company is lacking competent workers, offshore staffing in the Philippines is the way to go. The country has an abundance of people with:
- Impressive English Proficiency – The Philippines is one of the largest English-speaking countries in the world. It ranked 3rd in recent EF English Proficiency Index for Asia and made 15th place in world ranking.
- High Skills and Qualified Talents – The education system is consistently being improved to stay at par with global standards. The access to quality education and on-the-job training opportunities hone the skills of people to produce competent professionals from the country. Today, the country has a large pool of highly-skilled web designers, software developers, engineers, digital marketers, copywriters, drafters, estimators and more. The huge number of qualified talents made the country a trusted offshoring destination of clients from the United States, United Kingdom and Australia, among others.
- Commendable Work Ethic – Filipinos strive for excellence by adding value to their work. They give importance to their jobs by making sure they do it right. Skills are undoubtedly commendable but their attitude speaks more. Filipinos are respectful. They recognize authority and have no problems with following instructions. They are also enthusiastic and get tasks done when needed.
- Low Control
One of the key reasons a company would choose to offshore is to have full control of business activities (such as production, accounting and more) without depending on a third party. Some business inputs are very sensitive and time-dependent. Therefore, if a supplier didn’t deliver precisely as expected, it could be disastrous for the company. In these situations, a company may offshore to ultimately take better control of their corporate reigns.
If any of the signs above seems true to you, it is best to consider getting in touch with an offshoring companies in the Philippines immediately. Just like the old saying, prevention is better than cure, and offshoring might be your best preventive measure against impending business distress.