Nova Team Solutions – Global Outsourcing

Outsourcing to Philippines: Cost savings for Australia

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Outsourcing has become a popular strategy for businesses looking to cut costs and improve efficiency. For Australian companies, outsourcing to the Philippines has proven to be an effective way to achieve these goals. The Philippines has a highly educated and skilled workforce, and a cultural compatibility that makes communication and collaboration easy for Australian businesses. Additionally, the time zone difference between Australia and the Philippines is favorable for businesses looking to provide round-the-clock services.

One of the biggest benefits of outsourcing to the Philippines for Australian companies is the cost savings. The Philippines has a lower cost of living compared to Australia, and this is reflected in the lower wages that Filipino workers earn. This means that businesses can save money on labor costs by outsourcing to the Philippines. The savings can be significant, with some companies reporting labor cost savings of up to 60%.

Outsourcing non-core business functions to the Philippines can also help Australian companies to focus on their core competencies. By outsourcing non-core functions such as customer service, data entry, and IT support, companies can free up resources to focus on their core business activities. This can lead to increased efficiency and productivity for the company as a whole.

In addition to cost savings and improved efficiency, outsourcing to the Philippines can also provide access to a highly skilled and educated workforce. The Philippines has a large number of universities and colleges, and many Filipinos speak English fluently. This means that businesses can find highly skilled and educated workers for a variety of positions, such as IT, engineering, and finance.

Another benefit of outsourcing to the Philippines is the favorable time zone difference. The Philippines is only two hours ahead of Australia, which makes it easy for Australian businesses to collaborate with their outsourced employees. This can be especially beneficial for businesses that need to provide round-the-clock services, as the Philippines can cover the night shift while Australia is closed.

The Philippines government also supports the outsourcing industry and provides incentives for companies to invest in the country. This includes tax breaks, subsidies, and other benefits. This support can be beneficial for Australian companies looking to establish operations in the Philippines.

In conclusion, outsourcing to the Philippines can provide a wide range of benefits for Australian companies, including cost savings, improved efficiency, access to a skilled and educated workforce, and favorable time zone differences. The Philippines’ government support for the outsourcing industry also makes it an attractive destination for Australian companies looking to expand their operations.

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